Exit Of Competitor And Surge In Power Demand Bodes Well For Southern Cable
Exit Of Competitor And Surge In Power Demand Bodes Well For Southern Cable
SCGBHD's stellar performance was mainly driven by strong demand from utility companies and the accelerated commissioning of its Lot 38 facility. Sales to utility companies increased by 70% quarter-on-quarter and 82.8% YoY, fuelled by pent-up demand in the power infrastructure market. The company's ongoing expansion and capacity utilisation are expected to sustain growth, especially as Tenaga Nasional's long-term distribution contract, expected within the next two months, should provide a further boost.
Southern Cable Group Bhd (Official website Nov 2024)
南方電纜集團有限公司（官方網站 2024年11月）
Hong Leong Investment Bank Bhd (HLIB Research) has raised its target price for Southern Cable Group Bhd (SCGBHD) to RM1.45 from RM1.15, citing strong earnings growth and a robust outlook. This marks a 16.9% capital upside from the current price of RM1.24, with an expected total return of 16.9%.
豐隆投資銀行（HLIb研究）將南方電纜集團有限公司（SCGBHD）的目標價從RM1.15上調至RM1.45，原因是強勁的收益增長和良好的前景。這意味着與當前價格RM1.24相比，資本上行潛力爲16.9%，預計總回報爲16.9%。
The research house raised its earnings forecasts for the financial year 2024 (FY24), FY25, and FY26 by 13%, 20%, and 19% respectively, reflecting robust sales growth and an expanding capacity. SCGBHD's 9M24 earnings were reported at RM47 million, a 176% year-on-year (YoY) increase, surpassing expectations and making up 82% of HLIB's full-year forecast.
該研究機構將2024財年（FY24）、2025財年（FY25）和2026財年的收益預測分別上調了13%、20%和19%，反映出強勁的銷售增長和擴大的產能。SCGBHD的2024年前9個月收益達到4700萬RM，同比增長176%，超出預期，達到HLIB全年預測的82%。
SCGBHD's stellar performance was mainly driven by strong demand from utility companies and the accelerated commissioning of its Lot 38 facility. Sales to utility companies increased by 70% quarter-on-quarter and 82.8% YoY, fuelled by pent-up demand in the power infrastructure market. The company's ongoing expansion and capacity utilisation are expected to sustain growth, especially as Tenaga Nasional's long-term distribution contract, expected within the next two months, should provide a further boost.
SCGBHD的恒星表現主要得益於公用事業公司強勁的需求和其38號地塊設施的加速投入使用。對公用事業公司的銷售環比增長70%，同比增長82.8%，這是由於電力基礎設施市場積壓需求推動的。鑑於Tenaga Nasional的長期分銷合同預計將在未來兩個月內簽署，這將進一步推動公司的持續擴張和產能利用，助力增長。
The company has benefited from the booming demand for power cables, especially from direct current and combined cycle power plants . Sales of medium voltage (MV) and high voltage cables have grown from 30% to 45% of total orders, reflecting a shift towards higher-margin products. The expansion of SCGBHD's production capacity, particularly with its planned addition of 5,000km at its existing plant by mid-2025, is aimed at meeting rising local and international demand. The new capacity will focus on manufacturing low voltage (LV) and MV cables, which are expected to be in high demand from both Tenaga and US customers.
公司受益於對電力電纜的強勁需求，特別是來自直流電和聯合循環電廠的需求。中壓（MV）和高壓電纜的銷售已從總訂單的30%增長至45%，反映出對高利潤產品的轉變。SCGBHD的生產能力擴張，特別是計劃到2025年中期在現有工廠增加5000公里，旨在滿足不斷增長的本地和國際需求。新產能將專注於製造低壓（LV）和中壓電纜，預計將受到Tenaga和美國客戶的高度需求。
The US market has been a particularly strong performer for SCGBHD, with sales increasing due to heightened demand and the company's expanded capacity. SCGBHD currently delivers 45-50 containers of XHHW-2 cables per month to a major US customer, up from 40 containers in the first half of 2024. The group also expects to further enhance its presence in the US market with the commercialisation of a new USE-2/RHW-2 LV cable by the second quarter of 2025. HLIB expects US sales to continue growing, supported by these new product offerings and the expansion of production capabilities.
美國市場對於SCGBHD表現尤爲強勁，銷售因需求增加和公司擴產而上升。SCGBHD目前每月向一家主要美國客戶交付45-50個集裝箱的XHHW-2電纜，較2024年上半年40個集裝箱有所增加。該集團還預計在2025年第二季度推出新的USE-2/RHW-2低壓電纜後，將進一步增強在美國市場的影響力。HLIb預計美國銷售將在這些新產品和生產能力擴展的支持下繼續增長。
Additionally, SCGBHD is poised to benefit from its new plastic compound plant, which will improve its margins by ensuring better cost control and a consistent supply of plastic compound—essential components for power cables. The integration of this upstream segment is expected to enhance the group's overall cost structure and profitability.
此外，SCGBHD有望受益於其新的塑料Compound工廠，這將通過確保更好的成本控制和穩定的塑料Compound供應來提高其利潤率——這些都是電力電纜的重要元件。將這一上游環節整合進來預計將提升集團的整體成本結構和盈利能力。
HLIB's positive outlook on SCGBHD is underpinned by the group's leading position in Malaysia's power cable business and the favourable market dynamics, including the expected growth in power demand and the exit of a major competitor. The group is well-positioned to capture a larger market share, particularly with the upcoming Tenaga distribution contract and expanding capacity. HLIB's revised target price of RM1.45 reflects these optimistic prospects, placing SCGBHD in a strong position for future growth.
HLIB對SCGBHD的積極展望得益於該集團在馬來西亞電力電纜業務中的領先地位以及有利的市場動態，包括預計的電力需求增長和一家主要競爭對手的退出。該集團在即將到來的Tenaga分銷合同和擴展產能的背景下，處於捕捉更大市場份額的良好位置。HLIB修訂後的目標價爲RM1.45，反映出這些樂觀前景，使SCGBHD在未來增長中處於強勢地位。
譯文內容由第三人軟體翻譯。