SCIB - Soaring on SCORE

Sarawak - This will be one of the coming theme play after seeing a bullish development on Sarawak that is fueled by the SCORE (Sarawak Corridor of Renewable Energy). Undoubtedly, Sarawak Corridor of Renewable Energy, since its inception in 2008, has been a great source of encouragement, not only for the Regional Corridor Development Authority (RECODA), but for the state government and Sarawak as a whole. SCORE will be one of the core component in making Sarawak in becoming a developed state within the framework of the National agenda as envisioned by Vision 2020. 

While most of the largest beneficial of the SCORE might be sounding the likes of CMSB, Naim and SCABLE, little had known for SCIB (Sarawak Consolidated Industry Berhad), however not after today.

Let's have a quick look at SCIB on it's recent price movement

 

SCIB had been trading at the range of RM 0.50 for the past 1 year. The consolidation at that level had seen saturation and is currently looking to set it's base above RM 0.65 in the coming days. SCIB will be anticipating a large volume to penetrate above RM 0.65 in the coming days.


SCIB, primarily involved in the manufacturing of Prestressed Spun Pile, Reinforced Concrete Square Pile, Spun Concrete Pipe, Reinforced Concrete Box Culvert, Prestressed Beam, Concrete Roof Tile and Industrialised Building System (IBS) components such as Hollowcore Slab, Wall Panel, Column and Beam had been playing a substantial role in the development of SCORE since its inception. Back then at 2011, SCIB had been supplying 30% of the SCORE development material. However, SCIB will be taking up a larger role in the coming days after the completion of their new plant near Kuching.


SCIB and SCORE

SCIB precast concrete products and industrialized building systems (IBS) are in demand for the construction of manufacturing plants by energy-intensive industries and access roads to hydroelectric dam projects in Sarawak Corridor of Renewable Energy (SCORE).

SCIB will be taking a larger role on January 2014 after the completion of the new production line which will be adding another 30,000 tonne of production, effectively putting SCIB production to 114,000 tonne a year.

While the area of coverage had been very huge, this huge pie is a big opportunity for SCIB to tap into the supplies of the Industralized Building System.

Currently, rumor had it circling that SCIB had won a supply contract for the hydro electric plant that might be worth more than RM 200m in total. SCIB will be seeing a turn around this year as the progress and development of SCORE push to another level. SCIB will definitely be benefited from the major development from SCORE when more infrastructural projects will be dished out in the 2H of 2014.

I believe SCIB will be an interesting company to be vested based on the following
- Current market theme play - Sarawak themed company
- Robust development of the SCORE in Sarawak that consist of more than RM 22 billion in investment
- Completion of new factory that will increase output capacity of Industrialized Building System that will start to contribute early this year
- Favorable political connections towards the state governor.
- Involvement in the supplies of the building of new hydro electric plant and it's infrastructure.


A short term outlook will see SCIB moving above RM 0.65, while a longer term outlook might probably suggest SCIB to trade at RM 0.80.

Bone's short term TP: RM 0.70

Cheers and have a good day