SCH (0161) - SCH - Step Up
SCH debut into the KLSE started of which the ACE market listing back then in the end of February 2014 at an IPO price of RM 0.23 a share. The IPO debut, which had raised RM 20 million for the company to expand further by capturing the local growing construction market that is spiral by the KVMRT projects, TRX, and numerous upcoming highways from the east coast and also the central region of Peninsula Malaysia.
The little known SCH in the KLSE due to it's fresh name in the capital market is actually a significant player in the quarrying industry, in which it owns approx 20% of the local market share with huge customer such as YTL Cement, LaFarge (Malaysia) Cement and IJM Corp in it's portfolio.
While the construction sector in Malaysia continue to play a big part in the country economy, where could this be leading for a company like SCH Group Berhad?
Let's have a quick glance at the latest price chart of SCH.
The chart would suggest that the current price of SCH, which is at RM 0.26 is currently resting at a base consolidation stage which is at the range of RM 0.25 to RM 0.27. The stock had taken active trading session last week which had saw volume shot up above 10 million of shares transacted in a single day which is accompanied by solid white candle. This could be a good signal for the forthcoming day in anticipating a better participation in terms of volume on the counter.
A good break out from RM 0.28 could mark a good up trend for SCH in the coming days, which could move forward to challenge psychological resistant of RM 0.30.
At the current price, SCH share price had not been seeing much movement from it's IPO pricing of RM 0.23 despite the company seeing a revenue growth, increasing book orders, expanding of the local and ASEAN market.
SCH - Stepping Up Strong
SCH had a strong experienced management team that had came out from UMS Group. The team of personnel which had vast experience in machinery is currently assembled in SCH Group Berhad to gear up the company for a larger share in the local market and tapping in to the growing construction nation in the ASEAN country.
Under the lead of Managing Director, Mr Lau Mong Ling, SCH will continue to expand it's services to the ASEAN developing country after seeing a great demand in the booming construction sector. One of the core strategy is by selling reconditioned machinery that is bought from South Korea.
Currently, the company had presence in the Singapore, Vietnam, Indonesia, Myammar, Thailand and Cambodia market. SCH will also be looking into tapping further into the Cambodia market with a JV with another local Cambodian company which is believe to had a good connection.
The latest Q1 FYE 2015 had saw a good increase in revenue. According to internal sources, SCH had saw huge order and delivery to be made by end of March 2015 from it's baseline client in the local market in order to make a saving against the incoming implementation of 6% GST that will be effective in 1st April 2014.
This had been a huge good boost for SCH for the coming up 2nd Quarter result from December 2014 to February 2015 that is going to be reveal by the end of April 2014.
SCH will be aiming to earmark a projected EPS of around 6 cents, valuing at a conservative PER x7, could be worth RM 0.42, which will see more than 50% of capital growth at the current price of RM 0.26.
SCH will continue to be an interesting counter with good opportunity and potential in the coming future. With the local robust construction market powered by a series of KVMRT, booming property construction and packages of highways in Peninsula Malaysia and the East Malaysia (Sabah and Sarawak), coming up infrastructure booming ASEAN country such as Thailand, Indonesia and Cambodia, which will continue to contribute to the projected double digit growth in SCH Group Berhad.
Grow along with SCH? You decide.
Bone's short term TP: RM 0.35
Cheers and have a nice day
Regards,
Bone
http://bonescythe.blogspot.com/
