SAB

Southern Acids (M) BerhadKLSE:SAB Stock Report

Market Cap

RM534.0m

7D

0%

1Y

5.4%

Updated

17 Sep, 2021

Data

Company Financials
SAB fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends2/6

SAB Overview

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

Rewards

PE ratio (14.3x) is below the MY market (16.4x)

Earnings have grown 0.5% per year over the past 5 years

Risk Analysis

No risks detected for SAB from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for Southern Acids (M) Berhad
Historical stock prices
Current Share PriceRM3.90
52 Week HighRM3.60
52 Week LowRM4.20
Beta0.52
1 Month Change0.52%
3 Month Change3.72%
1 Year Change5.41%
3 Year Change2.09%
5 Year Change-2.01%
Change since IPO-18.07%

Recent News & Updates

May 27
If You Like EPS Growth Then Check Out Southern Acids (M) Berhad (KLSE:SAB) Before It's Too Late

If You Like EPS Growth Then Check Out Southern Acids (M) Berhad (KLSE:SAB) Before It's Too Late

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Shareholder Returns

SABMY ChemicalsMY Market
7D0%0.1%-1.0%
1Y5.4%38.9%5.9%

Return vs Industry: SAB underperformed the MY Chemicals industry which returned 39.9% over the past year.

Return vs Market: SAB matched the MY Market which returned 6.1% over the past year.

Price Volatility

Is SAB's price volatile compared to industry and market?
SAB volatility
SAB Beta0.52
Industry Beta0.58
Market Beta1

Stable Share Price: SAB is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SAB's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19801,629Nick Lowhttps://www.southernacids.com

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

Valuation

Is Southern Acids (M) Berhad undervalued compared to its fair value and its price relative to the market?

14.3x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SAB (MYR3.9) is trading above our estimate of fair value (MYR0.75)

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


Price To Earnings Ratio

PE vs Industry: SAB is good value based on its PE Ratio (14.3x) compared to the MY Chemicals industry average (16.7x).

PE vs Market: SAB is good value based on its PE Ratio (14.3x) compared to the MY market (16.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SAB is good value based on its PB Ratio (0.8x) compared to the MY Chemicals industry average (1.3x).


Future Growth

How is Southern Acids (M) Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

-9.5%

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.


Past Performance

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

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAB has high quality earnings.

Growing Profit Margin: SAB's current net profit margins (5%) are higher than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: SAB's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: SAB's earnings growth over the past year (16.7%) exceeds its 5-year average (0.5% per year).

Earnings vs Industry: SAB earnings growth over the past year (16.7%) underperformed the Chemicals industry 70.8%.


Return on Equity

High ROE: SAB's Return on Equity (6.7%) is considered low.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: SAB's short term assets (MYR428.5M) exceed its short term liabilities (MYR69.3M).

Long Term Liabilities: SAB's short term assets (MYR428.5M) exceed its long term liabilities (MYR27.5M).


Debt to Equity History and Analysis

Debt Level: SAB's debt to equity ratio (0.6%) is considered satisfactory.

Reducing Debt: SAB's debt to equity ratio has increased from 0% to 0.6% over the past 5 years.

Debt Coverage: SAB's debt is well covered by operating cash flow (1062.9%).

Interest Coverage: SAB's interest payments on its debt are well covered by EBIT (129.3x coverage).


Balance Sheet


Dividend

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

1.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAB's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: SAB's dividend (1.28%) is low compared to the top 25% of dividend payers in the MY market (4.09%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), SAB's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

9.3yrs

Average management tenure


CEO

Nick Low (42 yo)

6.17yrs

Tenure

RM727,050

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 ($USD174.72K) is above average for companies of similar size in the MY market ($USD124.03K).

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


Leadership Team

Experienced Management: SAB's management team is seasoned and experienced (9.3 years average tenure).


Board Members

Experienced Board: SAB's board of directors are considered experienced (8.2 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

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
  • Market Cap: RM534.043m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/17 11:02
End of Day Share Price2021/09/13 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.