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

SCC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

SCC 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

Trading at 79.1% below our estimate of its fair value

Risk Analysis

Earnings have declined by 19.6% per year over past 5 years

Profit margins (2.6%) are lower than last year (6.9%)

Does not have a meaningful market cap (MYR53M)

SCC Holdings Berhad Competitors

Yenher Holdings Berhad

KLSE:YENHER

RM265.5m

Ritamix Global

SEHK:1936

HK$378.8m

Rhone Ma Holdings Berhad

KLSE:RHONEMA

RM136.6m

PeterLabs Holdings Berhad

KLSE:PLABS

RM68.8m

Price History & Performance

Summary of all time highs, changes and price drops for SCC Holdings Berhad
Historical stock prices
Current Share Price	RM0.38
52 Week High	RM0.33
52 Week Low	RM0.53
Beta	0.26
1 Month Change	0%
3 Month Change	0%
1 Year Change	1.35%
3 Year Change	-23.47%
5 Year Change	-32.74%
Change since IPO	58.65%

Shareholder Returns

	SCC	MY Trade Distributors	MY Market
7D	-2.6%	-0.8%	-0.7%
1Y	1.4%	4.7%	5.8%

Return vs Industry: SCC underperformed the MY Trade Distributors industry which returned 5.5% over the past year.

Return vs Market: SCC underperformed the MY Market which returned 6.2% over the past year.

Price Volatility

Is SCC's price volatile compared to industry and market?
SCC volatility
SCC Beta	0.26
Industry Beta	0.94
Market Beta	1

Stable Share Price: SCC is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SCC's weekly volatility (5%) has been stable 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, hotwater 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, 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	RM52.94m
Earnings (TTM)	RM1.22m
Revenue (TTM)	RM46.18m

43.5x

P/E Ratio

1.1x

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	RM46.18m
Cost of Revenue	RM32.70m
Gross Profit	RM13.48m
Expenses	RM12.27m
Earnings	RM1.22m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0086
Gross Margin	29.20%
Net Profit Margin	2.64%
Debt/Equity Ratio	0%

How did SCC perform over the long term?

See historical performance and comparison

Valuation

Is SCC Holdings Berhad undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: SCC (MYR0.38) is trading below our estimate of fair value (MYR1.79)

Significantly Below Fair Value: SCC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: SCC is poor value based on its PE Ratio (43.5x) compared to the MY Trade Distributors industry average (13.6x).

PE vs Market: SCC is poor value based on its PE Ratio (43.5x) compared to the MY market (16.3x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SCC's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: SCC is overvalued based on its PB Ratio (1.2x) compared to the MY Trade Distributors industry average (0.9x).

Future Growth

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

5.5%

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.

Past Performance

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

-19.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCC has high quality earnings.

Growing Profit Margin: SCC's current net profit margins (2.6%) are lower than last year (6.9%).

Past Earnings Growth Analysis

Earnings Trend: SCC's earnings have declined by 19.6% per year over the past 5 years.

Accelerating Growth: SCC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCC had negative earnings growth (-68.8%) over the past year, making it difficult to compare to the Trade Distributors industry average (50.2%).

Return on Equity

High ROE: SCC's Return on Equity (2.8%) is considered low.

Financial Health

How is SCC Holdings Berhad's financial position?

Financial Position Analysis

Short Term Liabilities: SCC's short term assets (MYR45.7M) exceed its short term liabilities (MYR6.6M).

Long Term Liabilities: SCC's short term assets (MYR45.7M) exceed its long term liabilities (MYR615.0K).

Debt to Equity History and Analysis

Debt Level: SCC is debt free.

Reducing Debt: SCC had no debt 5 years ago.

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

Dividend

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SCC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SCC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SCC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SCC's dividend payments have been increasing.

Current Payout to Shareholders

Dividend Coverage: SCC is not paying a notable dividend for the MY market.

Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SCC's dividend in 3 years as they are not forecast to pay a notable one for the MY market.

Next Steps

Explore strong dividend paying companies in the Capital Goods industry.

Management

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

11.5yrs

Average management tenure

CEO

Adam Cher (45 yo)

Tenure

RM425,374

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

Compensation vs Market: Adam's total compensation ($USD101.64K) is about average for companies of similar size in the MY market ($USD124.66K).

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 (11.5 years average tenure).

Board Members

Experienced Board: SCC's board of directors are seasoned and experienced ( 11.4 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

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

Data	Last Updated (UTC time)
Company Analysis	2021/09/24 15:40
End of Day Share Price	2021/09/24 00:00
Earnings	2021/06/30
Annual Earnings	2020/12/31

Market Cap

7D

1Y

Updated

Data