the cable business is not a growth industry
you may be looking at improving financial ratios but its only because they hardly have any capacity expansion plans

you may see they have major clients like TNB/TM using their cables, but alot of times major projects have smaller portions of assignments where the contractors are free to use whatever "affordable" cables available to them, so you may see big names but the contributions may be insignificant. nevertheless TNB remains key customer as seen from its prospectus but its a rather tough business to be in as there is hardly any moat in the cable business; southern cables are known to be in the "middle ground" between imported and lesser known cheap cables

to me, prospect is bright, they have secured order book of up to RM405million to be recognised in the books by 2022. in the next 2 years.

but one thing i dont like is that the margin is a bit too low to my liking, less than 5% PAT margin. if it's like 8-10% then ok lah. but the plus point on this is that their PAT margin has been on growing trend since 2016 albeit the lower recorded PAT margin.

minimum dividend policy = 15% of PAT per annum. which is not too bad.

Took a deeper dive into the prospectus, their main competitor will be Sarawak Cable which has poorer financials, which Southern cable win in every aspect apart for the slightly lower revenue. Apart from this Sarawak Cable, next would be Olympic Cable Company (subsidiary of OSK Holdings Berhad), Pan-international Wire & Cable (subsidiary of PIE Industrial Berhad), the rest are listed elsewhere. which totally no match in terms of fundamentals. Can take a closer look at page 221 of the prospectus.

COVID 19 situation is something beyond the company's control as described by them, but their order book can sustain them until 2022 already. so anything extra is a bonus.

to me, this could be a mid-term play like 3-5 years and the valuation is kinda reasonable at slightly less than 10x PE.

Dilution at NA per share is also very small at 5.88% only. unlike some of the IPO which they dilute the public shareholders a lot during IPO stage.

Normally how high the chance to get when we subscribe to IPO? The optimax IPO @0.3 and price already double now @0.77. Can Southern cable also follow the similar trend, we shall see on next friday

i don't think it could be that high, unless you're talking about trying to subscribe like 300k or 500 shares, then your chance is very high.

We can wait for the ballot table to be out then we can see our chances. typically around 10-15% chance probably.

Example of solarvest ballot. Chances of a meaningful amount as he mentioned is very low.. unless you apply for a very low or a very high amount

send some my way pls, i applied samaiden.. this one still on the fence, or should i just whack only hahaha

send some my way pls, i applied samaiden.. this one still on the fence, or should i just whack only hahaha

open liao whole house.. hehe.. did you apply samaiden ?

tehoice is right tho. Especially ACE market companies where the retail portion is small vs larger main market offerings. the oversubscription for almost all ACE market listing are mad - and that should be the indicator. Chances of getting it is very very low.

Updated below is the press release and the IPO subscription table for your reference.

10 times oversubscribed. good or bad?

did you get it? watch out for your own account to find out 

Edit: Public portion for mine is about 15.7 times oversubscribed. means lower chance in getting already. sad....

Updated below is the press release and the IPO subscription table for your reference.

10 times oversubscribed. good or bad?

did you get it? watch out for your own account to find out 

Edit: Public portion for mine is about 15.7 times oversubscribed. means lower chance in getting already. sad....

so at the end got kena allocated?  :confused:

aiyo dun la like that.. i got it..

Didn't get straight says lousy IPO???
😤