SENG FONG HOLDINGS BERHAD
KLSE (MYR): SENFONG (5308)
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Last Price
0.98
Today's Change
0.00 (0.00%)
Day's Change
0.97 - 0.98
Trading Volume
2,183,200
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Be the first to like this. Showing 50 of 122 comments
1.Seng Fong never has a good day since its listing. Its share price has been loitering below IPO price for a prolonged and frustrating period. Today it has awaken and opened with a 2 sen gap up. It has attracted considerably huge buying interest and closed the day with a bullish engulfing candlestick at 81 sen.
2. In the last three quarters, SF reported profit of 2.97m in 4Q23, 8.29m in 1Q24 and 17.4m in 2Q24. Clearly the profit performance for SF has moved from mediocre to good and from good to great. The management in its advisory statement on the future and prospects of the company believes that it earnings will be spectacular and sustainable in the coming quarters.
3. In the 1H, the substantial rise in revenue and profit was attributed to the upgrading of production capacity arising from technology and automation as well as the implementation of factory operating time from 12hr shift to 18hr shift.
4. The additional hours of operation had permanently increased the production output from 166mt to 190mt annually.
5.The hard work and improvement effort undertaken by the management has begun to show up and reflected in the current remarkable and commendable result announcement of 17.4m as compare to 6.9m in the corresponding quarter last year.
6. For the 1H24 SF has accumulated profit of 25.6m. If SF is able to maintain its profit performance, than its year end earnings would be 51.2m. The company has issued and paid up share capital of 513m therefore, the EPS is 10sen.
7. The current bursa PE of 30 blue chips companies is between 13x to 15x and considering that SF being a relatively unknown, yet a PE of 11x would potentially value SF at Rm1.10 by year end.
8. Hence, basing on this analysis and valuation the upside potential of SF in the foreseeable future is astronomical. Therefore, it is unwittingly wasteful to dispose when SF has just only waken up to bursa. The selling would be somewhat pre matured.
9. The company has a dividend policy and the payout ratio is 30%. It has declared a 1.5 sen dividend and the ex date is on 15/3/24. The dividend payment date is on 5th Apr.2024
10. SF has also announced that it will undertake a bonus issues to reward its loyal and long term steadfast shareholders. For every 3 shares held, investors will be rewarded with one bonus shares on a date to be determined later.
10. In the meanwhile the company will undertake a private placement to place out 10% or about 51.3m new shares to selected investors or institutional funds. The indicative placement price is 75sen and SF is aspired to raise Rm38.5m.
Fund raising through private placement is fast, efficient, interest saving and less burdensome. There is no interest payment and absence of repayment of principle amount or borrowings.
11. It would be interesting to see who subscribe to the 51m placement shares. What transpire that motivates the subscribers and the reasons and great confidence they have on the prospect of the company and future intrinsic value ascribed to SF.
12. New investors have awaken to Seng Fong's remarkable and commendable profit performance. Good days have arrived and the best day is still ahead of the company.
13. There is value in SF. You have been enlightened.
Are you still sucking your thumb?. The choice is yours.
Happy trading
26/2/24
2024-02-26 19:38
Prospects and Outlook for the Current Financial Year
The global economy would continue to face challenges and uncertainty with the business environment of the
geopolitical tension in Middle East that may impact the global growth. The Group will monitor the US Monetary
Policy to the exposure on foreign exchange movements on a regular basis for our management's assessment on
the need to utilise financial instruments to hedge such currency exposure. The Board is optimistic of the prospects
to provide a sustainable and strong positive result for financial year ending 30 June 2024.
Following the completion of increasing production hours in all the three factories by adding a second working shift, thus increasing our production hours from 12 hours a day to 18 hours a day. Therefore, our total annual capacity is expected to increase to approximately 190,000 MTS in financial year 2024 compared with approximately 166,000 MTS in financial year 2023. The Group continues to capture on the increasing demand from markets of China and India which are the largest world consumers of natural rubber driven by the growth of their automotive industries.
The installation of the Biomass System to generate gas from wood chips as a fuel source for our dryer system is
aiming towards cost-saving by replacing the consumption of diesel; however, there is further fine-tuning required
by the vendor after the commissioning. This initiative will not only result in substantial cost savings in diesel
consumption and carbon footprint deduction but also demonstrates our commitment to compliances of ESG
requirements and in the long-run achieving sustainability objective.
In cognizant of the significance of sustainability in generating long-term value for the businesses and stakeholders
and as part of the growth strategies, Syarikat Tenaga (Gemas) Sdn Bhd, a wholly-owned subsidiary of the
Company has entered into the sales contract with Guangdong Ruobo Intelligent Robot Co Ltd from China on 1
December 2023 to purchase the Smart Rubber Manufacturing Equipment at a purchase price of
RMB10,430,000.00 (Renminbi Ten Million Four Hundred and Thirty Thousand) or equivalent to approximately
RM6,779,500.00 (Ringgit Malaysia Six Million Seven Hundred Seventy Nine Thousand Five Hundred). Such
installation would take place in Factory 2 first; this is in line with the adoption of Industry 4.0 towards automation
in manufacturing processes which is to further enhance production efficiency and achieve cost-efficiency as well
as reduce reliance on foreign workers.
Q2 Dec 23 Report dd 23022024
2024-03-01 17:34
1.There is value in SenFong and you have been enlightened since Feb 26th.
2.Share price has gone up from 77 sen to an intra day high of 1.03 and closed at 99 sen today. That is a spectacular rise of 28.5% in 3 weeks and an incredibly impressive performance.
3. What would you do tomorrow?.
If you keep your shares until tomorrow and the ex date is 14/3/24 hence, you are entitled to 1.5sen dividend.
4. Perhaps you are aware that the company has submitted a proposal to raise fund by selling 10% new shares through private placement and a 1 for 3 bonus shares to reward its loyal shareholders.
5. In light of the forthcoming corporate exercise, it may not be a bad idea to stay invested and ride on the positive news and profit from it.
6. All the best.
Happy trading
12/3/24
2024-03-12 21:34
1.Today is the ex date and for those who have kept their shares congratulation, you are entitled to 1.5sen dividend.
2. Good days have arrived and better days are still ahead of SenFong.
3.By tomorrow it will be exactly 3 weeks in which the company has submitted its proposal to Bursa for the 10% placement shares and the 1 bonus share for 3 existing shares.
4. Traditionally, Bursa will respond within 3 weeks and that means SenFong could reasonably expect to receive its approval.
5 In the coming days when the bonus issue becomes a certainty, there will be volume and volatility.
6 Enjoy the ride and profit from it.
Happy trading
14/3/24
2024-03-14 21:55
1.No one would respect you and your one line utterance of *pp will kill u* until you support it with an analysis and substantiate it with facts and numbers.
2. In the spirit of sharing, learning and earning together and for the benefits of fellow members in the forum, Lee YY could you write an analysis to enlighten us in what way and how PP would kill anybody.
3. In the meanwhile, many and I remained undeterred and unperturbed by your single line expression.
4. The ball is in your court.
Awaiting your response.
22/3/2024
2024-03-22 21:16
No worry to hold long term for the strong fundamental company like SF...
at least the bonus & dividend is good enough...
2024-03-27 09:28
SENFONG
a very strong stock:
https://www.tradingview.com/x/gDnwGKr6/
++++++++++++++++++++++++++++
Written by analyst jiaming8yap:
Q2 FYE2024 – strongest single quarter performance since listing
- Q2 FYE2024 - Revenue RM287.6 mil, increased 25% vs same quarter LY;
- Revenue based on geography contribution: China (52%), HK (18.5%), SG (29%), Others (<1%)
- Transactions and revenue are done in USD
- Q2 FYE2024 - Net profit RM17.4 mil, increased 151% vs same quarter LY; obtained highest ever profit margin at 6.1%
- Previous production capacity: 166,000MTs in FY23; Current production capacity: 190,000 metric tonnes (MTs) in FY24
- In all its three factories increased production hours, from 12 hours to up to 18 hours a day, by adding a second working shift.
- Average utilisation rate is around 85% - 87%
- Cost-saving measures: 1. Installation of the biomass system to generate gas from wood chips as a fuel source for its dryer system, replacing consumption of diesel 2. Implementation of automation in manufacturing processes to reduce reliance on foreign worker.
- On point 2, Syarikat Tenaga (Gemas) Sdn Bhd, their wholly-owned subsidiary has entered into a sales contract with Guangdong Ruobo Intelligent Robot Co Ltd from China on 1 Dec 2023 to purchase the Smart Rubber Manufacturing Equipment at a purchase price of RMB10.4mil (~RM6.7mil).
- Inventories have increased significantly, in tandem with their trade receivables.
- Dividend payout ratio at 50% PAT
Future prospects and catalyst:
- Approximately 70% of global natural rubber is used for tyre manufacturing, hence the demand for natural block rubber depends greatly on the development of the automotive and tyre industries.
- Increasing demand from the China and India markets (2 of the largest world consumers of natural rubber), spurred by emerging demand in the automotive industry.
- Fluctuation of crude oil prices. demand of supply of rubber and seasonal factors such as El-Nino and La Nina effect also may affect them.
- by 2035, $SENFONG / 5308 (SENG FONG HOLDINGS BERHAD) target to increase capacity to 250,000 MTs per annum, and they look to achieve it through either locating a strategic site for constructing new factory buildings or pursuing business acquisitions, if opportunities arise.
Corporate actions to take note and study further:
- Proposed private placement of up to 51.9 million new ordinary shares, representing up to 10% of the total number of its issued shares
- Bonus issue of up to 190.3 million shares on the basis of one bonus share for every three existing shares.
2024-03-29 16:57
Concern over rubber supply shortage boosts SMR 20 price
https://www.thestar.com.my/business/business-news/2024/04/08/concern-over-rubber-supply-shortage-boosts-smr-20-price
2 months ago
1.The 1 for 3 bonus shares have become a near certainty. The extra general meeting to obtain shareholders' approvals has been fixed on 6th. May 2024. Investors who has the strength and stamina to hold onto the shares will be rewarded handsomely.
2. It is surprising that there has been no news on the placement shares considering that the EGM for bonus shares is just 3 weeks away.
3. Market is anxiously waiting for the news and development on the placement shares. Once it is done, the new shareholders with a 10% stake in the company will will have and interest to sustain the share price at elevated level.
4. Seng fong for the past few trading days had closed between 106 and 109 with intraday height reaching 111 on considerably big volume.
5. Once, this is broken, better days are forthcoming.
6. Happy trading
15/4/2024
2 months ago
The corporate exercise to raise fund through a private placement has completed. The available allocation for the placement shares is 51.8m.
2. Very fortunately to minority shareholders the company only aspired to sell 22m shares instead of the entire possible allocation of 51.8m shares.
3. This is a positive and intelligent management endeavor to limit the share base and to minimize share dilution.
4. The outcome of placement shares is favorable to minority shareholders and those steadfast long term shareholders and founder as well.
5. The company has very strong balance sheet and generate healthy positive cashflow. Going forward, it is hope that the management would abandon the idea of second tranche and limit the negative impact of share dilution arising from the enlargement share capital base
6. In the coming days, the share price will be supported at the elevated level by the bonus shares of which the EGM has been fixed on 6th May 2024.
7. The 50% dividend policy and the remarkable and commendable performance in revenue and profit for 2024 and 2025 will boost share price in the days to come.
8. For the 1Q the company generated a profit of 8.3m and for the 2Q the company made 17.4m in profit for a total of 25.7m in 6 months. If this is taken as a guild the year end annualized profit would be 51.4m say 52m. Hence, a 50% dividend policy would mean 26m will be marked and distributed as dividend.
Next year might even be better.
8. This is my personal and laymen perception of the counter. It is not intended to influence your investment decision and strategy.
9 Happy trading.
26/4/2024
2 months ago
If its drop below than rm1, the investors will not confident to hold for long term.
2 months ago
1.The director through its flagship company Sumber Panji Sdn Bhd has further consolidated its position and shareholdings in Seng Fong by acquiring 825,200 additional shares.
2.Directors and insiders purchases are a sign of confidence and positive conviction in the prospects and future earning growth of the company.
3 These are the people who know best and have the most up to date information about their company. Hence, directors buying its own company shares and continuing in its efforts are certainly worth examining and following.
3. One of the greatest investors of all time Peter Lynch was noted as saying
" insiders might sell shares for any number of reasons, but they buy them for only one reason ; "THEY THINK THE PRICE WILL RISE".
4. Directors surely know something about the company that we don't know. So, ride on their knowledge and expertise and profit from it.
5 The EGM for bonus shares is on the 6/5/24.
Hi guys get into action and excitement.
6. This is my personal and laymen perception of the counter and it is not a buy or sell recommendation and certainly not intended to influence your investment strategy and decision.
Happy trading
29/4/2024
2 months ago
1Sumber Panji Sdn Bhd (SPSB) is on a buying spree. In two 2 days it has acquired a total of 1,494,300 shares.
2Why is SPSB aggressively buying its company shares and increasing its stake ?
3. You may be aware that before the private placement Seng Fong has 518.91m shares and SPSB effectively holds 59.39% of the issued share capital.
4 Upon completion of private placement of 22,281,000 new shares, the enlarged share capital become 541.19m shares.
5. To avoid dilution of shareholding SPSB needs to buy back its company shares. Considering the enlarged capital is 541.19m and to maintain its original shareholdings of 59.39% , it must directly own 541.19 x 0.5939 =321.41m shares.
6. After 2 days of buying seng fong in its filing announced that SPSB now has 318.72m shares.
7 The short fall is 321.41m minus 318.72m is 2.69m
8. Therefore, it is reasonably expected that SPSB will continue to mop up 2.69m shares from the open market to preserve its original shareholding of 59.39%
9. Hence, the share price will continue to climb and sustain at elevated level leading into its EGM and announcement of its ex date for the bonus issue.
10. This is my perception of Seng Fong and the implication of SPSB aggressively buying back its own company shares.
Happy Trading
30/4/24
2 months ago
3. One of the greatest investors of all time Peter Lynch was noted as saying
" insiders might sell shares for any number of reasons, but they buy them for only one reason ; "THEY THINK THE PRICE WILL RISE".
Totally agreed.......confidently its will rocketted🚀🚀🚀🚀🚀..........
by the way T A Y O R
1 month ago
1 Tomorrow is the EGM to obtain the shareholders' approval. Thereafter, the company will announce the ex date. The bonus issue has become a clear certainty after tomorrow.
2. Last Friday seng fong closed at 117 down 1 sen. With the bonus shares and renew buying support from the market, I believe the share price could reach new height and sustain at elevated level.
3 The company will announce its result in the month of May. In the 2nd quarter it made 17.4m and EPS 3.35sen and declared 1.5sen dividend. If this is served as a guild than SF will announce 17.4m or higher profit performance in its 3Q.
4. The company has a 50% dividend policy, hence it is realistically expected that loyal and steadfast shareholders may get to enjoy additional 1.5sen dividend in addition to the bonus shares.
5 Many good things are happening in SF.
Ride on the news and benefit from it.
6. This is my personal perception and it may or may not reflect the true situation of SF in the coming weeks.
7 Happy Trading
5/5/24
1 month ago
Will hold and more share for long term due to the dividend policy is so good!!..
Keep it up SF!!
1 month ago
Q3 very good compare to last year. another 1.5c dividend. Bonus issue approved by EGM
1 month ago
Higher gross profit compared to last quarter and prospect turns positive from last quarter.
1 month ago
KUALA LUMPUR (May 6): Rubber processor and exporter Seng Fong Holdings Bhd's net profit jumped more than threefold in its third quarter, thanks to higher sales volume and average selling prices.
It said its net profit for its 3QFY2024 ended March 31 surged to RM15.14 million from RM4.05 million a year earlier, while revenue jumped 39.2% to RM300.32 million from RM215.72 million.
The company declared a third interim dividend of 1.5 sen per share, payable on June 19. Year to date, the company has declared a total dividend of four sen, compared with 2.5 sen in the corresponding period in 2023.
The group's share price hit its all-time high of RM1.22 during trading hours on Monday, before settling at RM1.18, one sen or 0.85% higher from Friday's close. At RM1.18, the group is valued at RM639 million.
Year to date, the counter has gained 42 sen or 55.26%. The strong 3Q results came after the group posted its best quarterly earnings in 2QFY2024 with a net profit of RM17.4 million.
For its nine months ended March 31 (9MFY2024), the company reported a net profit of RM40.84 million, double the RM19.62 million it made in the corresponding period in 2023, as revenue grew 15.6% to RM807.35 million from RM698.18 million.
There has been higher consumption of natural rubber due to the growth of the automotive industry, led by the growth of electric vehicles in the US and China, Seng Fong said.
As such, it expects to expand its annual capacity by 14.5% to 190,000 MTS for FY2024, compared with 166,000 MTS in FY2023, by increasing the production hours across all three of its factories.
The group is also planning to install smart rubber manufacturing equipment at a total cost of RM26.1 million in all its factories to automate its manufacturing process. An initial payment of RM2.7 million has been made to its vendor Guangdong Ruobo Intelligent Robot Co Ltd using internal funds, the group said. The balance will be paid using proceeds from its private placement announced in February this year.
While flagging that the anticipated US Federal rate cut will affect foreign exchange movements, the group — which saw its revenue come mainly from customers in China, Hong Kong and Singapore — remains cautiously optimistic about achieving sustainable growth and good financial performance.
Source: https://theedgemalaysia.com/node/710524
1 month ago
Once the factory automation projects aka IR4 complete and running, its production efficiency will improve and immediately labour cost saving. BUY
1 month ago
1 On the 7th of May after which Seng Fong has announced a 3 fold jump in profit against its last year corresponding quarter, share price hit 122 and then strongly collapsed 9 sen to touch an intra day low of 113 and ended the day at 115 over considerably huge volume exceeding 5million shares traded.
2. There were volume and volatility and the 9 sen retraction on a single day has been the biggest and worst in Seng Fong.
3 Many may have taken profit and presumably laughing to the bank. Personally, I am of the opinion that if you can't handle Seng Fong at its worst, then you sure as hell don't deserve Seng Fong at its best.
Seng Fong is trading between 113 and 116 now. Somedays. it will bounce back slowly and safely.
4The dividend is just a week away and the bonus shares are forthcoming.
5. Hence ,If you are a long term value investor, you should not overly worry but, believe in the great fundamental, pro active, resourceful and result oriented management of the company.
6. Happy trading.
This write up was posted on 9/5/24
1 month ago
1Tomorrow is the ex-date for 1.5 sen dividend
Congratulation to those who are still invested in Seng Fong.
2. The next good news will be the bonus issue. It is happening.
3Hang on to it
Happy trading
16/5/24
1 month ago
1.Seng Fong not only survived the adage *Sell In May and Go Away*. Clearly, it has demonstrated resilience and triumphed over market adversity. Share price has stayed above 120 continuously.
2. As it sails into the month of June and moving towards bonus ex date, it will continue to attract market interest and buying supports.
3. Major shareholders through its flag ship company continued to scope up shares is a strong indication of confidence over the bright prospect in the future revenue and earning growth of the company.
4. The cumulative 9-month profit of Rm40.8m for 2024 has already surpassed the full year profit performance of 22m for year 2023.
5. If the final Q4 is to mirror Q2 17M profit and Q3, 15M profit than the year end profit for 2024 of 56m is realistically expected. Revenue and profit for 2025 could be explosive.
6. Seng Fong started off as a relatively unknown. It is now a promising counter and slowly and gradually becoming a raising star in the natural rubber and latex industry
7 As long as people need to drive cars, there is demand for tyres and therefore the business of Seng Fong is sustainable and durable
8 SF has all the ingredients of a long term value investing stock and hence, it is wise to stay invested. One would be unwittingly reckless to exit prematurely.
9 Share price may fluctuate up and down, but slowly and surely in the end it will conquer Everest.
Think about it and happy trading.
30/5/24
1 month ago
1Today is the ex date. And to those who have kept their shares, congratulation you have been rewarded with one bonus shares for every 3 shares held.
2 Consequently, there will be price adjustment arising from the corporate exercise of bonus issues.
3 Yesterday, seng fong closed at 118. Hence, the reference price on ex date 6/6/24 will be (3 x 118) / 4 = 88.5 sen This simply means yesterday you have 3 shares worth
3 x1.18 =3.54 and this morning you have 4 shares worth 4x 88.5 also = 3.54
4 Wait for the company announcement and check your portfolio. In the coming days the shares will be credited into your account.
5. Going forward one could expect more excitement. SF has a 50% dividend policy. It has upgraded its production capacity from 160000mt to 190000mt. Company has invested heavily on technology and automation to improve on efficiency and productivity. There will be cost saving and improvement on bottom line.
6.And hence earning growth is realistically expected in the coming quarters. Somedays the future profit performance will be reflected more prominently in the share price. For this one would have to wait and i believe it will not be long.
7 There is nothing wrong with SF falling from 118 to 88 this morning. In fact it opens up an opportunity for you to enter cheap in a big way
8 This is my personal perception of the counter but the bears may disagree.
9 Happy trading
6/6/24
3 weeks ago
Noted & thnx for info....the price keep falling ...it is correction or panic sell due to its trends was down..
3 weeks ago
rubber price hit new high since 2021.
with the current high inventory, should look positive.
3 weeks ago
senfong seems to have a good business model, they are selling into a niche market, and there is growth potential..... but looks like they have hit their plant capacity - very little growth for increased sales unless they expend, and surprisingly they ate very low in cash holding - these 2 factors are of a big concern.... happy hunting
3 weeks ago
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