Latest news with #RM72.3m
Yahoo
08-05-2025
- Business
- Yahoo
Southern Cable Group Berhad (KLSE:SCGBHD) Posted Healthy Earnings But There Are Some Other Factors To Be Aware Of
Southern Cable Group Berhad's (KLSE:SCGBHD) robust earnings report didn't manage to move the market for its stock. Our analysis suggests that this might be because shareholders have noticed some concerning underlying factors. Our free stock report includes 3 warning signs investors should be aware of before investing in Southern Cable Group Berhad. Read for free now. KLSE:SCGBHD Earnings and Revenue History May 8th 2025 Examining Cashflow Against Southern Cable Group Berhad's Earnings Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. To get the accrual ratio we first subtract FCF from profit for a period, and then divide that number by the average operating assets for the period. The ratio shows us how much a company's profit exceeds its FCF. As a result, a negative accrual ratio is a positive for the company, and a positive accrual ratio is a negative. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Southern Cable Group Berhad has an accrual ratio of 0.23 for the year to December 2024. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, which is hardly a good thing. Even though it reported a profit of RM72.3m, a look at free cash flow indicates it actually burnt through RM37m in the last year. We saw that FCF was RM115m a year ago though, so Southern Cable Group Berhad has at least been able to generate positive FCF in the past. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. The good news for shareholders is that Southern Cable Group Berhad's accrual ratio was much better last year, so this year's poor reading might simply be a case of a short term mismatch between profit and FCF. Shareholders should look for improved cashflow relative to profit in the current year, if that is indeed the case. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. Southern Cable Group Berhad expanded the number of shares on issue by 16% over the last year. As a result, its net income is now split between a greater number of shares. To celebrate net income while ignoring dilution is like rejoicing because you have a single slice of a larger pizza, but ignoring the fact that the pizza is now cut into many more slices. You can see a chart of Southern Cable Group Berhad's EPS by clicking here.
Yahoo
28-02-2025
- Business
- Yahoo
Southern Cable Group Berhad Full Year 2024 Earnings: EPS: RM0.086 (vs RM0.037 in FY 2023)
Revenue: RM1.35b (up 28% from FY 2023). Net income: RM72.3m (up 146% from FY 2023). Profit margin: 5.4% (up from 2.8% in FY 2023). The increase in margin was driven by higher revenue. EPS: RM0.086 (up from RM0.037 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 29% growth forecast for the Electrical industry in Malaysia. Performance of the Malaysian Electrical industry. The company's shares are down 1.6% from a week ago. You should always think about risks. Case in point, we've spotted 2 warning signs for Southern Cable Group Berhad you should be aware of, and 1 of them is potentially serious. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
