2021-10-01 03:19:24
Technical tracker - HLIB Retail Research – 1 October 2021
SCGBHD (RM0.48-Non-Rated) – Power cable specialistListed in Oct 2020 and is slated to migrate to the Main Market on Monday, Southern Cable Group Berhad (SCGBHD) is principally a manufacturer of cables and wires that are being used in many sectors such as power distribution and transmission, communications as well as control and instrumentation applications. Over the past 27 years, SCGBHD has established a solid track record in supplying cables and wires to giant companies like Tenaga, Sabah Electricity SB, TM, and Petronas. The company also supplies cables and wires to significant projects such as the MRT and RAPID projects in Pengerang. Recently, the group is targeting the construction and infrastructure sectors with its newly-developed aluminium-based cable as copper cable substitute, to mitigate rising copper prices in the past year.
As economic reopening gains traction, we expect the demand for cables and wires to increase in line with the accelerated economic activities. Power sector, which contributed 85% of its FY19 cables and wire revenue is deemed to be a major growth driver. As electricity demand in Peninsular Malaysia is expected to grow at a CAGR of 1.8% from 2020-2030, it will serve as baseline growth for SCGBHD power cables and wires sales. Besides, with JENDELA aiming to expand the 4G mobile broadband coverage from 91.8% to 96.9% by 2022 through building new towers and upgrading existing towers as well as the 5G rollout, SCGBHD’s prospects remain positive.
Leveraging into the group capabilities in manufacturing variety of cables and wire, SCGBHD had ventured into solar PV cables in FY20 that was used for solar PV system (certified by TÜV SÜD Product Service GmbH). We view this development positively as Malaysia is set to achieve 31% RE capacity mix by 2025, with solar PV as the key growth segment.
After correcting 20% from 52-week high of RM0.60 to RM0.48 yesterday, SCGBHD is poised for a downtrend reversal breakout in anticipation of a U-shaped rebound. A successful breakout above its neckline (RM0.50) will spur the prices toward RM0.53-0.55-0.57 territory. Cut lost at RM0.445.
Collection range: RM0.45-0.46-0.48
Upside targets: RM0. 53-0.55-0.57
Cut: RM0.44
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SCGBHD (RM0.48-Non-Rated) –电缆专家
SCGBHD 于 2020 年 10 月上市 (计划于下周将转到主板市场)是一家电缆和电线的制造商，该电缆和电线被用于多项领域，例如配电和传输、通信以及仪表应用。在过去的 27 年中，SCGBHD 向 Tenaga、Sabah Electricity SB、TM 和 Petronas 等大型公司供应电缆和电线，并建立了良好的记录。该公司还为Pengerang的 MRT 和 RAPID 等重大项目提供电缆和电线。此外，公司近期将把新开发的铝基电缆作为铜电缆的替代品，专攻建筑和基础设施领域，以抵消过去一年不断上涨的铜价。
随着经济重新开放，我们预计对电缆和电线的需求将随着经济活动的脚步而提升。电力业务（占据了公司 2019 财年电缆和电线收入方面的 85%），将会是公司未来主要的增长动力。与此同时，马来西亚半岛的电力需求预计将从 2020 年至 2030 年以 1.8% 的CAGR增长，这将作为 SCGBHD 电力电缆和电线销售的最低增长幅度。除此之外，由于 JENDELA 目标在2022 年将 4G 移动宽带覆盖率从 91.8% 扩大到 96.9%，通过建设新塔和升级现有电塔以及 5G 方面的部署，因此SCGBHD 的前景仍然保持乐观。
凭借公司在制造各种电缆和电线方面的能力，SCGBHD 在 2020 财年开发了用于太阳能光伏系统（由 TÜV SÜD Product Service GmbH 认证）的太阳能光伏电缆。我们对这项发展感到乐观，主要因为马来西亚计划将于 2025 年实现 可再生能源占31%的总发电量，因此太阳能光伏电缆将会是业务增长的一大看点。
SCGBHD的股价在从52 周高点回调 20% 至 昨日的RM0.48 令后，SCGBHD 目前正准备从下跌势反转突破U 形形态。股价成功突破阻力RM0.50 后，股价有望上探至RM 0.53-0.55-0.57区域。投资者可以把止损设置在 RM0.445。
买入范围：RM0.45-0.46-0.48
上行目标：RM0.53-0.55-0.57
止损：RM0.44
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