LATEST NEWS, CORPORATE SCGM's 4Q profit falls 33%, declares 2 sen dividend By Kamarul Anwar / theedgemarkets.com | June 23, 2016 : 11:05 PM MYT Printer-friendly versionSend by emailPDF version Translated by Google Translator: Select Language▼ KUALA LUMPUR (June 23): SCGM Bhd’s profit for the fourth quarter ended April 30, 2016 (4QFY16) fell by 32.61% year-on-year to RM3.46 million or 2.62 sen per share due to weaker ringgit, higher depreciation charges, and bigger finance costs. Revenue increased by 25.58% to RM32.49 million.
Its filing with Bursa Malaysia today said the top-line growth in the quarter was mainly due to higher sales demand in its plastic packaging products.
This is the first year-on-year drop in SCGM’s quarterly net profit since 3QFY13. Nonetheless, the company has declared its fourth interim single-tier dividend of two sen a share in the quarter, bringing the full-year dividend to 12 sen per share.
SCGM’s FY16 net profit was up by 30.65% year-on-year to RM20.19 million or 16.16 sen a share due to higher sales. Its revenue for the year came to RM133.51 million, 25.2% higher from the previous corresponding year’s RM106.63 million.
“The group has secured 110 new domestic customers as well as 19 new overseas customers during the financial year, which spurred the demand for new sales. In addition, higher demand for our existing customers contributed to the significant increase in group’s turnover,” said SCGM.
It said it is confident its performance will be on a steady growth in FY17, despite challenging times ahead. The discouragement use of polystyrene foam will increase demand from its customers who sought other alternatives to enhance their product mix such as lunchboxes.
“[The] introduction of our new two-coloured extrusion machine and press forming machine will further contribute significantly to the overall group earnings,” SCGM added.
The stock has jumped by over 16% in just a week. Today, it closed 17 sen or 4.94% higher at RM3.61, with a volume of 666,600.
SCGM is valued at RM476.52 million, or 22.34 times its FY16 earnings.
BRIEFING NOTE - SCGM Bhd Author: MalaccaSecurities | Publish date: Mon, 27 Jun 2016, 10:10 AM
Results Update SCGM BHD recorded a lower 4QFY16 net profit of RM3.5 mln vs. Tm5.1 mln in 4QFY15. Revenue for the quarter, however, rose 25.6% Y.o.Y to RM32.5mln.
For FY16, cumulative net profit grew 30.6% Y.o.Y to RM20.2mln, while revenue for the period increased 25.2% Y.o.Y to RM133.5mln, which comprises of 52.9% and 47.1% in local and export sales respectively.
Future Plan Will invest RM113.8mln in capex over the next three years for a new manufacturing facility–source of the said amount would come from internally generated funds, bank borrowings and capital markets. Meanwhile, the new manufacturing facility would be built on a new 7.8ac. land in Kulai, Johor and SCGM will see the addition of new machineries such as eight thermoforms, four extrusions and a cup machine.This will increase the extrusion capacity by 194.0% to 49.5mln kg per annum vs.16.8mln kg on a year.
Investment Highlights SCGM is an established leader in the thermo-form packaging with strong brand name locally and globally. Also, it has an extensive variety of thermo-form packaging with a recession proof customer base. Valuationwise, the company’s current PER valuation of 21.3x is significantly higher than its 5-year average PER of 11.8x.
Meanwhile, the company has a dividend policy of at least 40.0% from the group’s net profit. For FY16, SCGM declared its fourth interim dividend of 2.0sen per share, payable on 27thJuly2016, bringing its total dividend to 10.0sen. The company is still in a net cash position, whileits FY16 net asset stood at RM0.84 per share, which translates into a 37.7% Y.o.Y gain (from RM0.61 in FY15), mainly attributable to the private placement exercise and excess net operating cash flow.
BRIEFING NOTE - SCGM Bhd Author: MalaccaSecurities | Publish date: Mon, 27 Jun 2016, 10:10 AM
Results Update SCGM BHD recorded a lower 4QFY16 net profit of RM3.5 mln vs. Tm5.1 mln in 4QFY15. Revenue for the quarter, however, rose 25.6% Y.o.Y to RM32.5mln.
For FY16, cumulative net profit grew 30.6% Y.o.Y to RM20.2mln, while revenue for the period increased 25.2% Y.o.Y to RM133.5mln, which comprises of 52.9% and 47.1% in local and export sales respectively.
Future Plan Will invest RM113.8mln in capex over the next three years for a new manufacturing facility–source of the said amount would come from internally generated funds, bank borrowings and capital markets. Meanwhile, the new manufacturing facility would be built on a new 7.8ac. land in Kulai, Johor and SCGM will see the addition of new machineries such as eight thermoforms, four extrusions and a cup machine.This will increase the extrusion capacity by 194.0% to 49.5mln kg per annum vs.16.8mln kg on a year.
Investment Highlights SCGM is an established leader in the thermo-form packaging with strong brand name locally and globally. Also, it has an extensive variety of thermo-form packaging with a recession proof customer base. Valuationwise, the company’s current PER valuation of 21.3x is significantly higher than its 5-year average PER of 11.8x.
Meanwhile, the company has a dividend policy of at least 40.0% from the group’s net profit. For FY16, SCGM declared its fourth interim dividend of 2.0sen per share, payable on 27thJuly2016, bringing its total dividend to 10.0sen. The company is still in a net cash position, whileits FY16 net asset stood at RM0.84 per share, which translates into a 37.7% Y.o.Y gain (from RM0.61 in FY15), mainly attributable to the private placement exercise and excess net operating cash flow.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
ntygis
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Posted by ntygis > 2015-11-26 16:08 | Report Abuse
yes babe! keep moving!