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SAB

Southern Acids (M) Berhad KLSE:SAB Stock Report

Last Price

RM3.65

Market Cap

RM499.8m

7D

-1.9%

1Y

-3.9%

Updated

24 Sep, 2022

Data

Company Financials
SAB fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends3/6

SAB Stock Overview

Southern Acids (M) Berhad, an investment holding company, engages in the manufacture and marketing of oleochemical products.

Southern Acids (M) Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Southern Acids (M) Berhad
Historical stock prices
Current Share PriceRM3.65
52 Week HighRM4.30
52 Week LowRM3.55
Beta0.54
1 Month Change-0.81%
3 Month Change-1.62%
1 Year Change-3.95%
3 Year Change1.39%
5 Year Change-22.01%
Change since IPO-23.32%

Recent News & Updates

Shareholder Returns

SABMY ChemicalsMY Market
7D-1.9%-3.1%-2.6%
1Y-3.9%-1.5%-10.2%

Return vs Industry: SAB underperformed the MY Chemicals industry which returned -1.5% over the past year.

Return vs Market: SAB exceeded the MY Market which returned -10.2% over the past year.

Price Volatility

Is SAB's price volatile compared to industry and market?
SAB volatility
SAB Average Weekly Movement2.6%
Chemicals Industry Average Movement5.3%
Market Average Movement5.2%
10% most volatile stocks in MY Market11.3%
10% least volatile stocks in MY Market2.4%

Stable Share Price: SAB is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SAB's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19801,671Nick Lowhttps://www.southernacids.com

Southern Acids (M) Berhad, an investment holding company, engages in the manufacture and marketing of oleochemical products. The company operates through four segments: Oleochemical, Healthcare, Milling & Estate, and Investments & Services. It manufactures and markets fatty acids and glycerine for use in various applications, including personal care, cleaning agents, and food products.

Southern Acids (M) Berhad Fundamentals Summary

How do Southern Acids (M) Berhad's earnings and revenue compare to its market cap?
SAB fundamental statistics
Market CapRM499.81m
Earnings (TTM)RM85.79m
Revenue (TTM)RM1.22b

5.8x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAB income statement (TTM)
RevenueRM1.22b
Cost of RevenueRM911.79m
Gross ProfitRM308.13m
Other ExpensesRM222.34m
EarningsRM85.79m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.63
Gross Margin25.26%
Net Profit Margin7.03%
Debt/Equity Ratio3.7%

How did SAB perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

8%

Payout Ratio

Does SAB pay a reliable dividends?

See SAB dividend history and benchmarks
When do you need to buy SAB by to receive an upcoming dividend?
Southern Acids (M) Berhad dividend dates
Ex Dividend DateNov 08 2022
Dividend Pay DateNov 28 2022
Days until Ex dividend44 days
Days until Dividend pay date64 days

Does SAB pay a reliable dividends?

See SAB dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SAB?

Other financial metrics that can be useful for relative valuation.

SAB 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/Revenue0.2x
Enterprise Value/EBITDA1.9x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

SAB PE Ratio vs Peers
The above table shows the PE ratio for SAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.8x
SENFONG Seng Fong Holdings Berhad
8.7x7.9%RM329.5m
RGTBHD RGT Berhad
31.7xn/aRM317.1m
HIL Hil Industries Berhad
9.6x12.4%RM322.0m
LUSTER Luster Industries Bhd
21.3xn/aRM241.8m
SAB Southern Acids (M) Berhad
5.8xn/aRM499.8m

Price-To-Earnings vs Peers: SAB is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (17.8x).


Price to Earnings Ratio vs Industry

How does SAB's PE Ratio compare vs other companies in the Asian Chemicals Industry?

Price-To-Earnings vs Industry: SAB is good value based on its Price-To-Earnings Ratio (5.8x) compared to the Asian Chemicals industry average (16.4x)


Price to Earnings Ratio vs Fair Ratio

What is SAB'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.

SAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.8x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: SAB (MYR3.65) is trading below our estimate of fair value (MYR14.2)

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


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 Southern Acids (M) 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


1.0%

Forecasted Materials 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 Southern Acids (M) 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 whether Southern Acids (M) Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Southern Acids (M) Berhad performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


18.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SAB has high quality earnings.

Growing Profit Margin: SAB's current net profit margins (7%) are higher than last year (5.2%).


Past Earnings Growth Analysis

Earnings Trend: SAB's earnings have grown by 18.3% per year over the past 5 years.

Accelerating Growth: SAB's earnings growth over the past year (96.4%) exceeds its 5-year average (18.3% per year).

Earnings vs Industry: SAB earnings growth over the past year (96.4%) exceeded the Chemicals industry 13.1%.


Return on Equity

High ROE: SAB's Return on Equity (13%) is considered low.


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Financial Health

How is Southern Acids (M) Berhad's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: SAB's short term assets (MYR646.4M) exceed its short term liabilities (MYR146.1M).

Long Term Liabilities: SAB's short term assets (MYR646.4M) exceed its long term liabilities (MYR29.1M).


Debt to Equity History and Analysis

Debt Level: SAB has more cash than its total debt.

Reducing Debt: SAB's debt to equity ratio has increased from 0% to 3.7% over the past 5 years.

Debt Coverage: SAB's debt is well covered by operating cash flow (290.8%).

Interest Coverage: SAB's interest payments on its debt are well covered by EBIT (155.4x coverage).


Balance Sheet


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Dividend

What is Southern Acids (M) Berhad current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.37%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 25 2022Ex Dividend DateNov 08 2022Dividend Pay DateNov 28 202220 days from Ex DividendBuy in the next 44 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: SAB's dividend (1.37%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (2.05%).

High Dividend: SAB's dividend (1.37%) is low compared to the top 25% of dividend payers in the MY market (5.08%).


Stability and Growth of Payments

Stable Dividend: SAB's dividends per share have been stable in the past 10 years.

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (8%), SAB's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (9.7%), SAB's dividend payments are thoroughly covered by cash flows.


Discover strong dividend paying companies

Management

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

11.7yrs

Average management tenure


CEO

Nick Low (43 yo)

7.17yrs

Tenure

RM874,062

Compensation

Dr. Kok Thye Low , also known as Nick, has been Managing Director and Director of Southern Acids M Bhd since July 2015. Dr. Low served as a Director In-Lead of Oleochemical and Health Care Divisions at Sou...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD190.86K) is above average for companies of similar size in the MY market ($USD108.63K).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SAB's management team is seasoned and experienced (11.7 years average tenure).


Board Members

Experienced Board: SAB's board of directors are seasoned and experienced ( 10.5 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

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


Top Shareholders

Top 25 shareholders own 83.39% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
31.29%
Southern Palm Industries Sdn Bhd
42,840,270MYR156.4m0%no data
11.31%
Lembaga Tabung Haji, Endowment Arm
15,482,500MYR56.5m-0.83%0.56%
8.42%
Southern Realty (M) Sdn Bhd
11,527,419MYR42.1m0%no data
5.4%
Rasional Sdn Bhd
7,392,666MYR27.0m0%no data
3.62%
Southern Edible Oil Industries (m) Sdn. Berhad
4,958,332MYR18.1m0%no data
2.78%
Low Mong Hua Sdn Berhad
3,806,940MYR13.9m550.76%no data
2.74%
Kim Lim
3,758,620MYR13.7m0%no data
2.05%
Kin Lan Ng
2,801,941MYR10.2m0%no data
1.98%
Angsana Sutera Sdn Bhd
2,714,942MYR9.9m0%no data
1.74%
Kok Tai Leong
2,378,300MYR8.7m42.83%no data
1.54%
SOUTHERN COCOA PRODUCTS (M) SDN BERHAD
2,102,632MYR7.7m0%no data
1.5%
Lim Swee Lian
2,047,300MYR7.5m0%no data
1.09%
Banting Hock Hin Estate Co Sdn Bhd
1,487,500MYR5.4m0%no data
0.91%
Mun Chong Low
1,248,398MYR4.6m0%no data
0.72%
Mong Chai Low
991,666MYR3.6m0%no data
0.69%
Low Ai Fuah
951,148MYR3.5m0%no data
0.67%
Ai Hong Low
914,104MYR3.3m0%no data
0.67%
Ai Fuen Low
914,038MYR3.3m0%no data
0.67%
Kok Bo Low
913,104MYR3.3m0%no data
0.67%
Ai Choo Lou
913,073MYR3.3m-24.79%no data
0.66%
Kwee Hock Teo
900,000MYR3.3m16.43%no data
0.64%
Siew Lai Teo
872,400MYR3.2m0%no data
0.58%
Yee Sai
800,000MYR2.9m9.89%no data
0.55%
Phaik Lean Ng
756,000MYR2.8m6.18%no data
0.53%
Naga Wira SDN Berhad
720,938MYR2.6m0%no data

Company Information

Southern Acids (M) Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Southern Acids (M) Berhad
  • Ticker: SAB
  • Exchange: KLSE
  • Founded: 1980
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: RM499.810m
  • Shares outstanding: 136.93m
  • Website: https://www.southernacids.com

Number of Employees


Location

  • Southern Acids (M) Berhad
  • Centro Tower
  • Level 29
  • Klang
  • Selangor
  • 41300
  • Malaysia


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SABKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.