Posted by goldmanbull > 2 months ago | Report Abuse

Big clients like TNB, Tenaga and Petronas under our belt

Posted by James_Bond > 2 months ago | Report Abuse

Thanks! I m taking profit on this share, FYI…

Posted by sailang_now > 2 months ago | Report Abuse

James Comrade! Let's go!...tut tut

Posted by troy88 > 2 months ago | Report Abuse

Still undervalued and underrated. Should be worth above 0.90 with such consistent growth..

Posted by James_Bond > 2 months ago | Report Abuse

SCGB has more debt than cash! It is not net cash company! Further more, the raw material getting more expensive which will erode the core profit of this company! Please take note!

Posted by James_Bond > 2 months ago | Report Abuse

Bought this around 0.50! Time to take profit for me! I m not greedy!

Posted by xiaoeh > 2 months ago | Report Abuse

wait for correction....
if any...

Posted by James_Bond > 2 months ago | Report Abuse

Sold 50,000 shares each at 0.71, 0.72, 0.73!

Posted by James_Bond > 2 months ago | Report Abuse

Still hv another 500,000 shares yet to dispose…

Posted by James_Bond > 2 months ago | Report Abuse

Sold 0.735 50,000 shares! Thanks!

Posted by SmallSexyPig > 2 months ago | Report Abuse

> SCGB has more debt than cash! It is not net cash company! Further more, the raw material getting more expensive which will erode the core profit of this company! Please take note!

Only reason they have more debt than cash right now is because they spent a load of cash and took more loans increasing their output capacity. Should be no issue for them to be able to return to be net cash +ve

Posted by Peace99 > 2 months ago | Report Abuse

Wow, great! But seems a bit too quick up leh, haha

Posted by T1T4N > 2 months ago | Report Abuse

Sure will break RM1. Mark my words.
HOLD! Game just started, operator enter.

Posted by troy88 > 2 months ago | Report Abuse

Strong closing despite bursa shakedown. Looking good..

Posted by Hopeful > 2 months ago | Report Abuse

Article from enanyang published on 31/05/24 which I have Google Translated below.
Not sure if this caused the surge in volume and spike in share price....





Recently, many data center concept stocks such as CloudPoint Technology (CLOUDPT), YTL Power (YTLPOWR), MN Holdings (MNHLDG), etc., have taken advantage of the hot data center and their share prices have seen a wave of increases.

Among the many companies, there is one data center concept stock that cannot be ignored, that is Southern Cable (SCGBHD).

Background and Business

Southern Cable is a cable company located in Kedah. Since its establishment in 1993, it has accumulated more than 30 years of experience in the wire and cable industry.

The company's business is mainly engaged in the manufacture and sale of various wires and cables, including power cables, communication cables and instrument cables.

The power cable is mainly used to transmit electrical energy, while the communication cable is used to transmit data.

Finally, instrumentation cables are suitable for measuring and monitoring in automated industrial processes.

Performance Analysis

The latest financial report shows that the company's revenue and profit both hit record highs. Revenue reached RM300 million, a 12% increase from the previous month, while profit increased from RM6.5 million to RM12.4 million, a 91% increase from the previous month. The increase in performance was mainly due to the increase in sales of their products and good financial management.

What is the connection between data centers and Southern Cable?

Data centers consume a lot of electricity to run, and the transmission of this electricity requires a lot of wires and cables. In other words, as the number of data centers increases, the demand for wires and cables will also increase significantly, which means that Southern Cable, which specializes in manufacturing cables, will naturally benefit from it.

Southern Cable SGDBHD
(From Southern Cable Facebook)

Why should we pay attention?

The primary reason is the topic that everyone is talking about in the recent market, which is that Microsoft announced that it will invest up to RM10 billion in Malaysia to support the development of technologies such as artificial intelligence and cloud systems.

This means that the demand for data centers will increase significantly, because data centers are like the brain of the Internet, which specializes in providing powerful computing power and massive data storage, which are also the necessary resources for the operation of artificial intelligence and cloud systems. Therefore, Southern Cable, as a cable supplier, will directly benefit from it.

Secondly, the country’s Net Energy Plan (NETR) will also open up a larger market for Southern Cable. This is because under the NETR plan, the country will focus on investing in renewable energy, such as solar photovoltaic projects, which require a large number of cables to connect solar panels and transmit electricity.

Precautions

However, Southern Cable faces the risk of raw material price fluctuations. Since copper and aluminum are the main raw materials for cables, their prices will also be affected by global market and exchange rate fluctuations. In addition, the company's current financial position shows that cash is RM96 million and total borrowings are RM196 million, with a net debt status, which may affect future investment and development plans.

A bright future

In summary, Southern Cable has a bright future, especially with the demand growth driven by Microsoft and the national new energy policy. Therefore, they are also sought after by investors, and the stock price is also showing an upward trend and standing above the 20-day moving average (EMA 20).

Posted by sriweld > 2 months ago | Report Abuse

The latest results showed the net debt at RM82.794m. Copper, aluminum prices factored in contracts with main customers.

Posted by SmallSexyPig > 2 months ago | Report Abuse

RM82m is nothing if you're generating RM1b in sales a year. Other companies are much worse and rated much more highly. Undervalued.

Posted by SmallSexyPig > 2 months ago | Report Abuse

Fact of the matter with SCGBHD is:

1. Revenue 2x in 3 years
2. Profits 4x in 3 years
3. Steady consistent growth shown QoQ
4. Consistent reinvestment, expansion plans, entering new markets, new contracts
5. NTAs never reduced.

The thing I like about SCG is although as a business it doesn't move super fast, the management always have plans and a clear direction. Plus they actually execute their plans.

Posted by sriweld > 2 months ago | Report Abuse

SCGB is on track to generate at least RM90m operating cash inflow in 2024. It will be in net cash within 15 to 18 months at most, depending on the dividend quantum. Profits doubled in 2023 after a 33% increase in 2022. It will double again in 2024. Operational capacity is already in place with the expansion in the last 2 years.Market value will be in excess of RM1b.
Growth has been and will continue to be very strong. We have a very capable management here.

Posted by Hopeful > 2 months ago | Report Abuse

From the 1Q24 Press Release :

To capitalise on growth opportunities, Southern Cable is expanding its production capacity.
In May 2024, the Group acquired a 7.9-acre industrial land with an existing building adjacent to its current facilities in Kuala Ketil, Kedah, for RM14.0 million. The newly acquired property will enable the Group to scale up production and meet the increasing demand both domestically and in the United States (US).
Tung added: “In addition to strong domestic growth, we are seeing a significant increase in demand from the US. Trade tensions and shifting supply chains have created a need for alternative suppliers in Asia, and Southern Cable is well-positioned to meet this demand. Our new facility will be instrumental in expanding our production capacity and broadening our product portfolio to better serve our US customer.”

“The newly acquired property will enable the group to scale up production and meet the increasing demand both domestically and in the United States,” the cable and wire manufacturer said in a statement.

The Group plans to commence equipping and upgrading the new facility in 2025. The facility is expected to support its target to increase export sales, particularly to the U.S. market.

Great vision by the Management.

Posted by wine1234 > 2 months ago | Report Abuse

The management should get analysts to cover the stock. Doesn't seem to have any indepth investment report.

Posted by goldmanbull > 2 months ago | Report Abuse

Collect more first before analyst cover ahahhaha

Posted by investor2021trading > 2 months ago | Report Abuse

SCGBHD earnings is rather consistent n never disappoints me. Revenue n profit increases every quarter to quarter. It's indeed a good fundamental stock n deserved a higher price rating.

Posted by ov123 > 2 months ago | Report Abuse

Coverage or no coverage, the SCGB investors here are smarter than most of the so-called professional analysts. We are up 77.4% this year alone and there is still a long way to go. High growth stocks do not trade at PER of below 10.

8 minutes ago

Posted by James_Bond > 2 months ago | Report Abuse

Sold another batch of scgb… expecting high raw material price such as copper, aluminum leading to less profit margin for scgb! Thanks!

Posted by James_Bond > 2 months ago | Report Abuse

Sold another batch! Thanks!

Posted by troy88 > 2 months ago | Report Abuse

On healthy uptrend. Should be worth at least 0.9X

Posted by pang72 > 2 months ago | Report Abuse

Bro James,
Congrate you selling scg..
This is the way of sell in strength

Posted by LOOK009 > 2 months ago | Report Abuse

https://sharesinfo4u.com/vip_content/trailing/%e3%80%8a%e9%a9%ac%e8%82%a1%e7%82%b9%e5%ad%90-56-23%e3%80%8b%e5%88%86%e4%ba%abscgbhd%e7%ba%a68%e4%b8%aa%e6%9c%88%e7%bf%bb%e5%80%8d%e4%ba%86%ef%bc%8c%e4%b8%bb%e5%8a%9b%e4%bb%8d%e5%bc%ba%e5%8a%b2/

Posted by SmallSexyPig > 2 months ago | Report Abuse

Sold 1/3rd of my holdings at 0.810 today :-) thank you

Posted by Cakes Moon > 2 months ago | Report Abuse

Buy in Pmetal to hedge against aluminum or copper prices!!!

Posted by investor2021trading > 2 months ago | Report Abuse

Sell on strength! Copper price -5.59% (weekly) n Aluminum price -2.78% (weekly).

Posted by pang72 > 2 months ago | Report Abuse

Bro James, hv you finish selling scg?

Posted by Cakes Moon > 2 months ago | Report Abuse

pang72, can this Scgbhd hit RM1?

Posted by pang72 > 2 months ago | Report Abuse

After bro James selling finish scg then $1

Posted by pang72 > 2 months ago | Report Abuse

You quickly take up all bro James ticket today..

Posted by pang72 > 2 months ago | Report Abuse

Let's close day high 86c after massively selling by Bro james

Posted by pang72 > 2 months ago | Report Abuse

We can make it without any selling pressure now

Posted by pang72 > 2 months ago | Report Abuse

89.5c wow...
We can make the dream to multi year's high after bro James selling massively scg...

Posted by pang72 > 2 months ago | Report Abuse

Comrades.. Let's fight the best out of data center theme in power cable

Posted by pang72 > 2 months ago | Report Abuse

Today break 90c to standby $1 mari next week

Posted by BuySoLow SellEvenLower > 2 months ago | Report Abuse

Mari2, tak beli nanti hanya makan roti. Buy high sell higher.

Posted by pang72 > 2 months ago | Report Abuse

Day high 89.5c now..
Let's fight 90c for closing

Posted by pang72 > 2 months ago | Report Abuse

MTEC $1.43
Scg $89.5c?

How long scg in 89.5c before everyone realise scg POWER?

LET'S THE MARKET SKOWLY UNVEILED SCG

Posted by AngAngBoHaiLang > 2 months ago | Report Abuse

one day after ex-date dividen will drop like hell

Posted by troy88 > 2 months ago | Report Abuse

Solid fundamentals for this gem. Still underrated and undervalued..

Posted by Cakes Moon > 2 months ago | Report Abuse

I kena conned by James bro to take profit at 81.5 cents yesterday.
Now wait for retrace to buy back my shares.
😥

Posted by Cakes Moon > 2 months ago | Report Abuse

Now Aluminium & Copper drop a lot at US market, hedging can mitigate the price fluctuation.

Posted by troy88 > 2 months ago | Report Abuse

Always follow your own analysis and forecast. Don't just follow some of those cunning smart asses in i3

Posted by enning22 > 2 months ago | Report Abuse

for analysis and forecast.，you need to look into two markets that require these products ,wiring and cable.
1,housing and property market ,2. semiconducter, and data centers.These two markets are just beginning to hot up. plenty of potentials. how big ,we don;t know ,no limit yet, just a beginning.
on data centers ,Singapore currently hosts 80 -100 data centers, many need to relocate to Malaysia, the reason said to be Singapore doesn;'t have enough electricity supply, and we viewed YTLpower benefitted much from this.reason。