it is one of few companies that show > 10 years revenue uptrend (since 2008), and same to earnings (exclude 2019, high depreciation & finance cost as massive capacity expansion). The management consider capable and very alert, in 2020 March after gov announce MCO, they already tighten credit to customer and manage receivables (knowing the risk ahead).

Public Bank

- Running at maximum capacity utilization. The Group’s capacity utilization level for its plastic packaging product has surged from 60% in early-2020 to 80% currently given the increasing demand for packed and baked food products. Meanwhile, nearly 40% of its food and beverage plastic packaging products saw an increase in ASP owing to SCGM’s need to incur extra labour costs due to longer working hours in order to fulfil orders for the products.
- Looking into phase 2 expansion plan. The 600,000 sq ft Kulai plant, which has an extrusion capacity of 62.6m kg/year, is currently 85% occupied. Management is planning for its 2nd phase expansion plan given the limited production capacity at present. New machineries are expected to arrive in Sept-Oct, with the higher capacity expected to contribute an additional 10%-15% to the Group’s sales.
- Receiving maiden order from UK customer. Management also shared that it has recently received its first order from the biggest bakery supplier in the UK. The products are mainly for the 3-pack muffins, 4-pack muffins and 5-finger slices. Albeit it being a small order, the subsequent orders will be significantly larger once it passes the trial period, which takes about 6-9 months.
- Targeting export markets. Management targets to grow its export market, which made up only 35.1% of its total sales. Post the Covid-19 outbreak, SCGM has seen significant improvement in export sales owing to a pick-up in orders from Singapore, Australia, UK and Philippines. The Middle East region is the next area that it plans to penetrate into after the UK.
- Strong pick-up in face mask orders. The company saw a more than 20-fold jump in its face mask orders since the Malaysian government’s announcement making it mandatory to wear face masks for those using public transportation and in crowded public areas from 1 Aug.

26 mil / 193 mil = 0.1347
0.1347 * 22 = 2.96

now forward PE ~26/27 (if maintain FY2021 Q1 result). In the 2015 to 2019, PE in the range of 13 to 18.

https://www.malaymail.com/news/malaysia/2020/02/10/hit-by-ncov-asian-business-group-to-truck-three-million-malaysian-medical-g/1836011