SCC Holdings Berhad (KLSE:SCC) - Share price, News & Analysis

Q: What is the Fair Price of SCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SCC (MYR0.34) is trading above our estimate of [[fair value]] (MYR0.09)

SCC fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	2/6

SCC Stock Overview

SCC Holdings Berhad, an investment holding company, engages in the sale, marketing, and distribution of food service equipment and animal health products primarily in Malaysia.

Rewards

Earnings grew by 179.4% over the past year

Risk Analysis

Earnings have declined by 25.7% per year over past 5 years

Shares are highly illiquid

High level of non-cash earnings

Dividend of 2.99% is not well covered

+ 1 more risk

SCC Holdings Berhad Competitors

Chuan Huat Resources Berhad

KLSE:CHUAN

RM70.8m

KPS Consortium Berhad

KLSE:KPSCB

RM88.7m

ACO Group Berhad

KLSE:ACO

RM67.7m

Turbo-Mech Berhad

KLSE:TURBO

RM74.5m

Price History & Performance

Summary of all time highs, changes and price drops for SCC Holdings Berhad
Historical stock prices
Current Share Price	RM0.34
52 Week High	RM0.42
52 Week Low	RM0.32
Beta	0.31
1 Month Change	-6.94%
3 Month Change	-9.46%
1 Year Change	-8.22%
3 Year Change	-31.63%
5 Year Change	-40.18%
Change since IPO	41.73%

Shareholder Returns

	SCC	MY Trade Distributors	MY Market
7D	0%	0.3%	-2.0%
1Y	-8.2%	46.0%	-11.6%

Return vs Industry: SCC underperformed the MY Trade Distributors industry which returned 46% over the past year.

Return vs Market: SCC exceeded the MY Market which returned -11.6% over the past year.

Price Volatility

Is SCC's price volatile compared to industry and market?
SCC volatility
SCC Average Weekly Movement	n/a
Trade Distributors Industry Average Movement	5.6%
Market Average Movement	5.3%
10% most volatile stocks in MY Market	11.1%
10% least volatile stocks in MY Market	2.5%

Stable Share Price: Insufficient data to determine SCC's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SCC's volatility change over the past year.

About the Company

Founded	Employees	CEO	Website
1972	n/a	Adam Cher	https://www.sccholdings.com.my

SCC Holdings Berhad, an investment holding company, engages in the sale, marketing, and distribution of food service equipment and animal health products primarily in Malaysia. It operates through three segments: Food Service Equipment, Animal Health Product, and Other. The company supplies and distributes a range of food service equipment and supplies, including pressure and open fryers, rotisseries, ovens, breading machines, blast chillers, merchandisers, coffee machines, hot water machines, powder mix dispensers, slush machines, iced tea brewers, popcorn machines and warmers, cotton candy machines, waffle bakers, popcorn and waffle mixes, cotton candy and smoothie mixes, trays, condiment servers, napkin dispensers, mitts bottle holders, blenders, griddles, steamers, and fruit syrup, as well as garnish centres, food display cabinets, and heated hold cabinets.

SCC Holdings Berhad Fundamentals Summary

How do SCC Holdings Berhad's earnings and revenue compare to its market cap?
SCC fundamental statistics
Market Cap	RM47.29m
Earnings (TTM)	RM3.40m
Revenue (TTM)	RM55.99m

13.9x

P/E Ratio

0.8x

P/S Ratio

Is SCC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCC income statement (TTM)
Revenue	RM55.99m
Cost of Revenue	RM39.29m
Gross Profit	RM16.70m
Other Expenses	RM13.30m
Earnings	RM3.40m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.024
Gross Margin	29.83%
Net Profit Margin	6.07%
Debt/Equity Ratio	0%

How did SCC perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

42%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SCC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SCC. This is calculated by dividing SCC's market cap by their current preferred multiple.
What is SCC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM47.29m

SCC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	6.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does SCC's PE Ratio compare to its peers?

SCC PE Ratio vs Peers

The above table shows the PE ratio for SCC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9.9x
CHUAN Chuan Huat Resources Berhad	9.8x	n/a	RM70.8m
KPSCB KPS Consortium Berhad	4.2x	n/a	RM88.7m
ACO ACO Group Berhad	9.6x	n/a	RM67.7m
TURBO Turbo-Mech Berhad	16x	n/a	RM74.5m
SCC SCC Holdings Berhad	13.9x	n/a	RM47.3m

Price-To-Earnings vs Peers: SCC is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (9.9x).

Price to Earnings Ratio vs Industry

How does SCC's PE Ratio compare vs other companies in the MY Trade Distributors Industry?

Price-To-Earnings vs Industry: SCC is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the MY Trade Distributors industry average (9.1x)

Price to Earnings Ratio vs Fair Ratio

What is SCC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SCC's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SCC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCC (MYR0.34) is trading above our estimate of fair value (MYR0.09)

Significantly Below Fair Value: SCC is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is SCC Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-1.7%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SCC Holdings Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine SCC Holdings Berhad's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has SCC Holdings Berhad performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-25.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCC has a high level of non-cash earnings.

Growing Profit Margin: SCC's current net profit margins (6.1%) are higher than last year (2.6%).

Past Earnings Growth Analysis

Earnings Trend: SCC's earnings have declined by 25.7% per year over the past 5 years.

Accelerating Growth: SCC's earnings growth over the past year (179.4%) exceeds its 5-year average (-25.7% per year).

Earnings vs Industry: SCC earnings growth over the past year (179.4%) exceeded the Trade Distributors industry 27.6%.

Return on Equity

High ROE: SCC's Return on Equity (7.4%) is considered low.

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Financial Health

How is SCC Holdings Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCC's short term assets (MYR46.3M) exceed its short term liabilities (MYR6.1M).

Long Term Liabilities: SCC's short term assets (MYR46.3M) exceed its long term liabilities (MYR845.0K).

Debt to Equity History and Analysis

Debt Level: SCC is debt free.

Reducing Debt: SCC has no debt compared to 5 years ago when its debt to equity ratio was 0.1%.

Debt Coverage: SCC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SCC has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is SCC Holdings Berhad current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.99%

Current Dividend Yield

Dividend Yield vs Market

SCC Holdings Berhad Dividend Yield vs Market

How does SCC Holdings Berhad dividend yield compare to the market?
Segment	Dividend Yield
Company (SCC Holdings Berhad)	3.0%
Market Bottom 25% (MY)	2.2%
Market Top 25% (MY)	5.3%
Industry Average (Trade Distributors)	1.9%
Analyst forecast in 3 Years (SCC Holdings Berhad)	n/a

Notable Dividend: SCC's dividend (2.99%) is higher than the bottom 25% of dividend payers in the MY market (2.17%).

High Dividend: SCC's dividend (2.99%) is low compared to the top 25% of dividend payers in the MY market (5.3%).

Stability and Growth of Payments

Stable Dividend: SCC's dividend payments have been volatile in the past 10 years.

Growing Dividend: SCC's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (41.5%), SCC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SCC is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

12.6yrs

Average management tenure

CEO

Adam Cher (46 yo)

10.25yrs

Tenure

RM455,374

Compensation

Mr. Lip Chun Cher, also known as Adam, serves as Managing Director at SCC Holdings Berhad since September 01, 2020 and has also been its Executive Director since July 2, 2012. He served as a Business Devel...

CEO Compensation Analysis

Adam Cher's Compensation vs SCC Holdings Berhad Earnings

How has Adam Cher's remuneration changed compared to SCC Holdings Berhad's earnings?
Date	Total Comp.	Salary	Company Earnings
Jun 30 2022	n/a	n/a	RM3m
Mar 31 2022	n/a	n/a	RM3m
Dec 31 2021	RM455k	RM360k	RM2m
Sep 30 2021	n/a	n/a	RM2m
Jun 30 2021	n/a	n/a	RM1m
Mar 31 2021	n/a	n/a	RM880k
Dec 31 2020	RM425k	RM360k	RM2m
Sep 30 2020	n/a	n/a	RM2m
Jun 30 2020	n/a	n/a	RM4m
Mar 31 2020	n/a	n/a	RM5m
Dec 31 2019	RM472k	RM318k	RM5m
Sep 30 2019	n/a	n/a	RM5m
Jun 30 2019	n/a	n/a	RM6m
Mar 31 2019	n/a	n/a	RM7m
Dec 31 2018	RM518k	RM318k	RM7m

Compensation vs Market: Adam's total compensation ($USD97.98K) is about average for companies of similar size in the MY market ($USD107.07K).

Compensation vs Earnings: Adam's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SCC's management team is seasoned and experienced (12.6 years average tenure).

Board Members

Experienced Board: SCC's board of directors are seasoned and experienced ( 12.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

What is the ownership structure of SCC?
Owner Type	Number of Shares	Ownership Percentage
Institutions	3,160,700	2.2%
Public Companies	6,233,100	4.4%
General Public	31,417,208	22.3%
Individual Insiders	100,349,132	71.1%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 25 shareholders own 76.4% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
22.31%	Long Chee	31,492,033	MYR10.5m	0%	no data
13.98%	Sew Cher	19,727,847	MYR6.6m	0%	no data
8.37%	Ah Goh	11,810,445	MYR4.0m	0%	no data
4.71%	Sou Taik Chu	6,646,848	MYR2.2m	0%	no data
4.69%	Meng Hock Tee	6,613,566	MYR2.2m	0%	no data
4.42%	JcbNext Berhad	6,233,100	MYR2.1m	0%	no data
3.31%	Soh Teck	4,670,096	MYR1.6m	0%	no data
3.21%	Joan Moon Moke	4,527,950	MYR1.5m	0%	no data
1.43%	Gee Leng Ong	2,014,724	MYR674.9k	0%	no data
1.42%	RHB Asset Management Sdn Bhd	2,000,000	MYR670.0k	0%	0.06%
1.26%	Kim Ee Yee	1,779,330	MYR596.1k	0%	no data
0.82%	DBS Group Holdings Limited, Asset Management Arm	1,160,700	MYR388.8k	0%	0.01%
0.77%	Lip Cher	1,090,802	MYR365.4k	0%	no data
0.71%	Mui Khee Sim	1,002,591	MYR335.9k	0%	no data
0.58%	Ser Kok Tey	825,000	MYR276.4k	0%	no data
0.53%	Kim Yuen Ng	745,000	MYR249.6k	0%	no data
0.53%	Foi Tee Goh	743,800	MYR249.2k	0%	no data
0.52%	Chou Cher	740,000	MYR247.9k	0%	no data
0.47%	Kwi Yeen Low	660,000	MYR221.1k	0%	no data
0.46%	Ying Hooi Chuah	650,000	MYR217.8k	0%	no data
0.42%	Lip Ter Cher	599,260	MYR200.8k	0%	no data
0.39%	Chee Chin Lim	550,000	MYR184.3k	0%	no data
0.37%	Meow Siang Khor	522,300	MYR175.0k	0%	no data
0.37%	Keng Fah Lee	518,400	MYR173.7k	0%	no data
0.37%	Jy Ne Siau	515,840	MYR172.8k	0%	no data

Data	Last Updated (UTC time)
Company Analysis	2022/10/02 00:00
End of Day Share Price	2022/09/22 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31