Holistic View of SCC with Fundamental Analysis & iVolume Spread Analysis (iVSAChart)

Author: Joe Cool   |   Publish date: Tue, 31 May 2016, 02:59 PM 

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Profile

• Listed on 3 August 2010
• A component of the FBM ACE Index under the Wholesale Distributor industry
• Market Capitalisation of RM 78 million

Background and Core Business

• Specialty Distributors for Food Service Equipment Division (FSED) and Animal Health Products Division (AHPD)
• FSED encompasses industrial grade kitchen equipment and solutions used in commercial food preparation i.e. Restaurants/Food Service Providers
• AHPD includes antibiotic and non-antibiotic feed additives for livestock in feed mills and farms

Financial Brief and Ratios (Historical)

• SCC (0158.KL)	FY 2015 (RM’000)
  Revenue (RM’000)	60,373
  Net Earnings (RM’000)	6,406
  Net Profit Margin (%)	10.556
  EPS	0.149
  PE Ratio (PER)	13
  Dividend Yield (%)	5.00
  ROE	17
  Cash Ratio	2.573
  Current Ratio	6.505
  Debt to Equity Ratio	0.01

• Revenue has experienced a y-o-y growth of +47.31% but net earnings growth experienced a contraction of -3.07%
• Negative EPS growth also at -3%
• PER is low for the industry average
• Dividend Yield has declined by -30% y-o-y
• The company’s gearing is net cash

iVolume Spread Analysis (iVSA) & comments based on iVSAChart software – SCC
             

• This is the 1-year weekly iVSAChart of SCC indicating there was period of accumulation from Oct 2015 till Apr 2016
• This was confirmed by Signs of Strength (green arrows) detected by iVSAChart software as early as Feb 2016
• Price subsequently broke out from the trading range which dating back to since Sep 2015
• However, there was no follow through from this breakout in Apr 2016 indicating no demand and price subsequently drifted downwards/sideways on low volume to test the previous resistance levels of RM1.90 - RM2.00
• Traders/investors should start to take note if more Signs of Strengths emerge suggesting another round of hidden buying/accumulation

Any questions?
- Website https://www.ivsachart.com/events.php
- Email: sales@ivsachart.com
- WhatsApp: +6011 2125 8389/ +6018 286 9809
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This article only serves as reference information and does not constitute a buy or sell call. Make your own assessment before deciding to buy or sell any stock.