Good morning.
Today, we feature a note on Seacera Group Berhad in our FundTech Radar – 26th March 2019. Seacera Group Berhad (SEACERA) is engaged in manufacturing and trading of all kinds of ceramic tiles and related building material products. SEACERA is also involved in the business of property development and construction activities. As at 31 Dec 2018, SEACERA’s sales were made up of 91% local sales.
Fundamental Stance
· Turning into the red in FY18E.
· However, its net gearing ratio remains at a comfortable level of 0.04x.
· The former three major shareholders were forced to sell down their stakes in SEACERA on 29 Oct 2018.
· Dato' Tan Wei Lian (also the Executive Chairman of Tiger Synergy Berhad) becomes the largest shareholder of SEACERA since he acquired shares in February 2019.
· The weakening consumer demand, and subdued property/construction works in near term, cost hikes (such as minimum wage and natural gas) will be the key factors that may affect SEACERA’s performance.
· The industry players, namely Kim Hin Industry, White Horse, and Yi-Lai, are also running their business at loss.
Technical Front
The long-term downtrend line may likely persist.
Resistances: 0.400/0.500/0.660
Supports: 0.310/0.265/0.200
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
26th Mar 2019
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