SOUTHERN CABLE GROUP BERHAD

KLSE (MYR): SCGBHD (0225)

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Last Price

0.46

Today's Change

+0.005 (1.10%)

Day's Change

0.455 - 0.465

Trading Volume

1,529,300

Meeting


Ann. Date Date Time Type Venue View
Discussions
3 people like this. Showing 50 of 1,082 comments

nelsonlim

break 37 then only can 39 then 41

2023-10-05 19:49

nelsonlim

angry ady

2023-10-06 09:03

nelsonlim

Gogogog la muhibbah. Jgn scg ady

2023-10-06 16:15

xiaoeh

Coming uptrend?

2023-10-06 16:24

SmallSexyPig

I still think it's slightly below it's fair rating, generally markets trade looking forward so it might climb as high as 0.42-0.43 in the short term.

2023-10-06 17:07

Hair123

Paying dividend with a net debt of RM144m is not a good idea.
Better to pay off the debt, reduce interest costs will lead to increase profits and a higher share price.

2023-10-08 23:08

xiaoeh

Buy on news and sell on facts.
Will that happen tomorrow for all stocks risen recently?

2023-10-12 16:49

Insidefluential

We'll see it breaking 40c soon

2023-10-12 20:31

trader808

1.In the last 3 months, the fundamentals of SCG had improved tremendously. It has managed to generate a net cash of 62m from operation and a free cash flow of 29m. The company now has 50.8m in cash and term deposit compare to 21.8m a year ago.

2. More impressively, it managed to reduce its debts from 221m to 186m. It has demonstrated excellent ability in repaying debts plus a positive trend and committed effort to reduce it further in the coming few quarters. The loans and borrowing are financed by banker's acceptance. The gearing has improved and risk is more acceptable.

3. The company has declared and paid Rm2.24m in dividend.

4. It has successfully won more projects and the order on hand has attractively exceeded Rm1.b that would keep the company busy and profitable from many quarters to come.

5. With several cable manufacturers going into receivership and Sarawak cable affected by PN17, SCG has in a short period of time become the leading and preferred supplier of cables in Malaysia. It potential is huge and the prospects is brilliant.

6 The investing public and possibly some funds and institutions have begun to see and recognize the great potential in SCG and its future intrinsic value.

7. Basing on the sudden spike in volume and persistent rise in share price, it is not surprising that SCG already has some impressive big funds or institution added into its shareholders list.
8. To steadfast and die hard investors, scg has begun to shine. Someday you endurance and perseverance will be rewarded. This time it is real. I think so.

9. I have selfishly remain silent and refrain from commenting on the positive and radical change in the fundamental of SCG since the most recent quarter result announcement.

10. It is not entirely a bad thing to get stuck with SCG. It is like been trapped in a terrible traffic jam in your Porsche with a girl friend of wife material.
11. The longer the better.
Happy journey and happy trading
22/10/23

2023-10-22 18:19

xiaoeh

That is why u won't buy at $0.29 level and always enter when price had already shoot up, but no doubt in the safer bets.

2023-10-22 18:31

minher

RHB IB: Southern Cable’s RM1b orderbook provides earnings visibility for next three years

KUALA LUMPUR (Oct 25): RHB Investment Bank Research has valued Southern Cable Group Bhd (SCG) at 50 sen and said SCG’s orderbook, worth more than RM1 billion (1.14x cover ratio), provides earnings visibility for the next three years.

In a note on Wednesday, the research house said with an unyielding need for power and cables, SCG has emerged as a thriving player in this evergreen market, poised for continuous expansion.

It said Malaysia's ambitious goal of achieving net zero emissions by 2050 — including higher uptake of renewable energy (RE) sources and the enhancing of the country’s grid — is expected to be a catalyst for the group’s earnings growth.


RHB IB said SCG recently secured a RM332.1 million contract from Tenaga Nasional Bhd (TNB) for the supply of underground cables and conductors, bringing its year-to-date (YTD) contract wins to more than RM500 million.

“On the back of a solid orderbook and Malaysia’s shift towards using RE, the power grid upgrades, and SCG’s growing export sales and recovering margins, we expect it to record a FY22-25F earnings CAGR of 24.3%.

“Our fair value is derived from 15x FY24F P/E. This is a huge discount to its international peer average for the cables and wires business, given SCG’s smaller market cap, local-centric business, and lower margins,” it said.

However, the research house noted that it is one of the sector’s cost leaders and possesses the widest range of product offerings locally.

“It also enjoys the lion’s share of demand for cables from TNB.

“Key downside risks include its dependence on capex spending by the power industry, escalation of input costs, fluctuation in commodity prices and margin pressure due to competition,” it said.

2023-10-25 10:16

Ahmadrazak

Strong buying momentum this morning. Should able to break 40sen soon. Huge contract on the way

2023-10-27 11:40

Peace99

@Trader808 I like your statements 10&11 summary!
I am keeping a lump of SCG, the longer the better!!

2023-10-27 13:01

SmallSexyPig

I saw SCG hit 0.4 for the first time in so long today

2023-10-27 16:45

pancamatari62

very hard to breakout

2023-10-31 16:57

xiaoeh

How trader808, sell or hold?

2023-10-31 18:27

damansaraeagle

it will breakout

2023-11-01 08:55

pancamatari62

haihhh tireddddd

2023-11-02 12:18

niktraderinvestor

When qr expected to out?

2023-11-03 18:45

pancamatari62

engine is starting

2023-11-06 16:03

ov123

file:///C:/Users/USER/Downloads/my_southern_cable_group_trading_idea_20231025_rhb.pdf

2023-11-07 16:39

Simple Man

why so huge no. of dispose? something wrong?

2023-11-23 16:00

tomwah

yeah ,im in

2 months ago

pzam83

Niceeeeee....

2 months ago

SmallSexyPig

Best Ever QR. Fantastic!

2 months ago

cedcan

Go go go

2 months ago

SmallSexyPig

here always sell on good news hahaha. maybe next EoY break 40c

2 months ago

xiaoeh

broke recently 0.395 resistant

2 months ago

wakarimas

ini scgbhd got benefited from Nvidia punya Data center project??

2 months ago

faruqie

The potential benefit of a cable manufacturing company from a data center project depends on various factors, and it’s important to consider the specific context and details of the project. Here are some points to consider:

1. Cabling Infrastructure Demand:
• Data centers typically require extensive cabling infrastructure for networking, power distribution, and communication. A cable manufacturing company that produces high-quality and specialized cables may see increased demand for its products.
2. Project Size and Scope:
• The size and scope of the data center project matter. Larger data centers with more complex requirements may present more opportunities for cable manufacturers.
3. Technological Advancements:
• As data centers evolve and incorporate new technologies, the demand for advanced and specialized cables may increase. For example, fiber optic cables might be in demand for high-speed data transmission.
4. Quality and Standards:
• Data centers often have strict quality and performance standards for their cabling infrastructure. A cable manufacturing company that meets or exceeds these standards may be more likely to benefit from such projects.
5. Competitive Landscape:
• The competitiveness of the cable manufacturing industry plays a role. Companies that can provide cost-effective and reliable solutions may have a competitive advantage.

2 months ago

faruqie

from chatgpt

2 months ago

BursaKakis

Commentary of Prospects - Q3 Sep 2023

Southern Cable's prospects are supported by the growing demand for cables and wires in
Malaysia, in line with ongoing development and infrastructure projects.

As at 30 September 2023, the Group’s orders in hand amounted to RM893.2 million, and are
expected to be fulfilled by 2026. These orders include the supply of underground cables and
conductors to Tenaga Nasional Berhad and Sarawak Energy Berhad, the supply of rectifier and
battery systems to Telekom Malaysia Berhad, as well as purchase orders from EPCC
(Engineering Procurement Construction Commissioning) contractors, resellers, and others.

Notably, the Group’s annual cable and wire production capacity has increased by 21% to
40,780 km from 33,780 km in the previous financial year ended 31 December 2022 due to
installation of new machinery, enabling the Group to deliver more orders and enhance its
revenue.

Meanwhile, Southern Cable is aiming to capitalise on the growing demand for power cables
and wires from Malaysia’s National Energy Transition Roadmap (NETR) objectives.

On 27 July 2023, the Ministry of Economy of Malaysia unveiled 10 flagship projects under
Phase 1 of the NETR, encompassing solar farms, hydrogen energy, and others, with anticipated
investments of RM25 billion. A projected total investment of between RM435 billion to RM1.85
trillion until 2050 will be required to enable Malaysia to achieve its target of 70% Renewal
Energy (RE) capacity mix, which involves investment in RE generation sources, strengthening
of grid infrastructure including transmission lines enhancement, and energy storage systems,
among others.

To this end, Southern Cable has supplied a wide range of power cables and wires used in
power transmission and distribution networks, including TÜV SÜD certified solar photovoltaic
cables. These products have been used by EPCC solar players in projects such as Large Scale
Solar, positioning the Group favourably to tap into the renewable energy market.

Barring unforeseen circumstances, Southern Cable’s outlook remains positive for the financial
year ending 31 December 2023.

2 months ago

SmallSexyPig

In addition to the above, they're re-investing locally made profits into kick starting their business in the USA. A highly cash rich country, if they can make inroads there then the profits will come. SCG are going places.

2 months ago

xiaoeh

Nice closing!!!

2 months ago

SmallSexyPig

market finally woken up to SCGBHD

2 months ago

BursaKakis

Southern Cable set to resume uptrend, says Rakuten Trade
https://theedgemalaysia.com/node/694762

2 months ago

trader808

1. In the past, the shareholders of SCG were mainly unknown consisting of Ah kow, Ahmad and Samy without any hedge funds, financial institutions or high net worth individuals.
2.Dato has finally come to his sense and realize that he alone cannot do much and for the share price to move he needs the help of someone with deep pockets. The company must improve the quality of its shareholders with high profile anchor investor/s and much better from the institutions.

2. The most significant corporate development in SGC over the past weeks had been the disposal of 38m shares on 17/11/23 and 25m shares on 24/11/23 by Segamat Handal Sdn Bhd in the off-market transactions.

3. While we do not know the name of the new investors , they certainly created great confidence and generated enormous interest in the counter. SCG is heated up with volume and persistent rise in share price. This time it is real.

4. SCG is a key player and leader in the cable manufacturing business. A lot has been said and discussed in my previous posting and i shall not repeat it again here.

5 SCG is a long term fundamental value investing stock. Allow it some time to realize and maximize its full potential. We intend to stay invested

6. Someday your endurance and perseverance will be handsomely rewarded.
Happy trading
21/12/23

2 months ago

sriweld

Sarawak Cable - PN17 - with net debts of RM366m has a market cap of RM135m.
SCGB - high growth, profitable with net assets above RM300m has a market cap of RM 344m.
Just a matter of time before the market re-rates SCGB.

1 month ago

trader808

1.SCG has a spectacular rise from 28.5sen in June 2023 to hit an intra day high of 43.5sen in the end of December. In the 6 months period, the counter has soared remarkably more than fifty two percent. (43.5 - 28.5)/28.5 = 52.6%

2 , The company has 800m issued capital.For the 9M ending Sept it has generated 746m in revenue and 17.01m in profit. The accumulated earning per share EPS for the 9M is 2.13sen.

3.For the sake of analysis, let us simply annualized the EPS with this formula. Hence, the year end EPS is (2.13/3) x 4 is 2.87sen

4. The current bursa market PE consisting of the 30 largest companies by market cap is 13.5x. Therefore, if we assign the bursa PE multiple for SCG, than the year end share price of SCG should be 13.5x2.87 is 39sen.

5. SCG closed at 41.5sen today. At this price it is deem fully valued.

6 This is my short term and personal perception of the counter. It is not a recommendation to buy or sell but is intended as a sharing by providing an alternate view. It may or may not reflect the actual situation of the company.

Happy trading
28/12/23

1 month ago

Guba2113

calm and steady

1 month ago

xiaoeh

good job

1 month ago

Alphabull

wow new high, data centre theme for 2024?

1 month ago

Peace99

With all the constructions, solar power, EVs and communication needs, just feel that Southern just have to keep going north! I'm just holding tight to my southern almost since beginning!!

1 month ago

ov123

Master Tech, Low Voltage manufacturer, sales (annualized) RM273m, market value RM357m
SCGB, High Voltage manufacturer, sales (annualized) RM1b, market value RM332m

Master Tech IR department knows how to promote their company.

2 weeks ago

Hair123

IR people here still sleeping. Time to wake up. CNY coming soon.

2 weeks ago

Iwillbeback

[SC latest Qtr - 273M, NP -6.5M] [Master latest Qtr -65m, NP 5.7M] which stcok do you to buy?

2 weeks ago

sriweld

Master is a wire maker with a RM400mmarket cap.
SC is a market leader cable producer, 4.2x the sales of Master. Market cap just RM340m.

1 week ago

ov123

Mtec IR people are in a different league. They held analysts briefing. Their CEO did a podcast with BFM radio. They even got RHB to do a webinar for the public.

1 week ago

rob8ry24

mtec fly, scg when?

14 hours ago

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