Skb Shutters Corporation Berhad

Tradeview issues a buycall on $SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD)

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) - Starts to appear on mainstream media, and the management believes the growth trajectory can still continue.

SKBSHUT had been covered here in Stockbit since the early days by @Penglam , and I also shared a little bit more about them after their Archidex exhibition recently.

Few days back, the Star BizWeek team had an interview with them with a few interesting points to note of shared by group MD Michelle Sin. If you subscribe to the Star, you can read the article yourself here: https://cutt.ly/kezcnoj6

Let's just go through some main highlights.

1. SKBSHUT's net profit had climbed from RM 5mil in fy21, to RM 9.6m in FY22, and RM 14.9m in FY 23. Even taking out the covid pandemic impact, prepandemic they were only recording around RM 2-3mil of profit, so the growth is very strong indeed. Michelle hinted that the growth is not one-off, but is a result of the company's focus and resetting to improve productivity and efficiencies.

2. They have earmarked RM 100mil for expansion into a new fully automated manufacturing facility, of which ~RM 36 mil was already spent to acquire the 9.8acres land at $ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) 's Eco Business Park V in Puncak Alam. Construction of the new plant will start soon and they expect to relocate and go live by end 2025. (Based on their operating cash flow, I believe they won't need to incur any dilution to fund the expansion)

3. Currently, all their machines at their KD plant are running but capacity can be still increased. However, in the next 5 years they expect that the existing plant will be insufficient.

4. As more MNCs come into Malaysia, they require stringent standards for their parts which bodes well for SKBSHUT. For example, data centers require doors that fulfil a range of functions including security, fire resistance, acoustic performance, and so on. On the matter of DC supply chain, SKBSHUT had been supplying their products to DCs since over 10 years ago, long before the current DC craze. With the new DCs coming up, they are indeed seeing rising orders for their products.

5. About half of their sales are to export markets to over 40 countries with ASEAN as its biggest market, and also includes Oceania, Middle East, and India. New markets that are growing include Qatar, Saudi Arabia, and China.

6. Their products are focused more on providing customised solutions and emphasizing quality and meeting international standards, rather than on pricing.

7. SKBSHUT is moving towards higher performance and ESG-based products; last year they launched their powerless flood shutters and this product is seeing a lot of attention from local and international customers, especially due to the unpredictable flooding patterns nowadays.

8. In 2024, their new shutter products are blast resistant shutters, often used in the O&G sector (I heard, but haven't verified, that some refineries are using their blast shutters), and also high impact wind resistant shutters to withstand typhoons and hurricanes.

9. What would SKBSHUT do with the KD land and factory after relocating? No plans yet, for now. Interestingly, the land is held at quite the cheap valuation in the books, last revalued in 2011, and (this is very much speculation) if they decide to sell it.........

10. For now though, SKBSHUT has no plans to diversify and will focus on being a manufacturer.

11 July 2024

Our Stocks Watchlist

Dufu @ RM2.63 – Buy and hold for long term and Company is benefiting from both Seagate and Western Digital expected strong Q4 (June 2024) with revenue growth and volume of HDD shipped from market sources. Both Dufu’s customers are looking at further double digit % growth for Q4 June 2024

Notion @ RM1.98 – buy on weakness below RM1.80. Company reported good Q1 (EPS 1.56 Sen & PAT RM8.024 mil) and Q2 (EPS 2.72 Sen & PAT RM14.035 mil) with 1H net profit of RM22.059 mil with EPS of 4.27 Sen. The Co HDD business will be benefit from Western Digital Growth as WD is the Company’s HDD customer. Company had stated in no uncertain term that 2H will be better and we projected FY 2024 EPS to be 10 Sen

IFCAMSC @88.5 Sen – speculative and for trading purpose for short term investment. Just ride on the market momentum and business news on Einvoicing and after Q2 Report would have better feel of Company’s outlook.

ADB @RM1.28 – buy below RM1.20 and ride on the market momentum and business news on Einvoicing, after Q2 30 June Report would have better feel of outlook.

PIE @RM 6.37 – Too late to board the bus and valuation is ahead of earnings.

RGB @48 Sen) – Buy and hold when below 49 Sen. RGB is taking a breather and consolidating around 50 Sen. Valuation of 60 Sen to 72 Sen based on projected FY 2024 profit. On 31 May the Co secured a RM381 mil contract for delivery of gaming machines in FY 2024 and expected 70% delivery in Q3 and 30% in Q4. Thus, 2H will have a very strong result. Potential catalyst for further growth and to have dominance gaming machines market in Philippines with the regularization of the gaming industry and Philippines Players upgrading their facilities with the booming gaming industry. Looking at recent price volume, we think there is still leg to move up


QES now @71.5 Sen is valuable stocks to enter. Share price year range 46 Sen to 78 Sen. We heard trading of PPE for steal industries orders had been overwhelming and staff are paid above 3 mths bonus. Strong orders were shipped out in Q2 30 June and a rerating is due.

Recently secured orders from a German MNC with worldwide presence for test equipments. This could give Co to make inroad worldwide if the customer found it to be good and reliable.

Inari @RM 3.96 is probably fair valued achieving our target valuation. Better outlook and profit when their China Plant commenced operation with huge potential as Chinese semiconductors and RFID sensor Companies or Players will need Inari JVC to support their development.


ONG Companies
Deleum@ RM1.30 – good to hold and assess the co progress.

As at the end of the first quarter of 2024, Deleum maintained a strong cash position, boasting cash and bank balances ofRM279.8 million, an increase of RM63.9 million from RM215.9 million as at 31 December 2023. Shareholders’ equity remained steady at RM409.5 million as of 31 March 2024. Currently, Deleum’s order book is robust at RM594.7 million, with the majority of works and equipment slated for delivery within the next 12 months. Below is Q1 March Press Release



Coastal – just hold and no point cutting now just hold and wait for confirmation of extension of contract and new positive developments.

Ulicorp @RM2.21 – already FAIR VALUED AND achieved target valuation compared to our recommendation @RM1.40 in March.

SKB Shutters – only for investors with longer term perspective will be extensively involved with data centre buildings and waiting for Mr Market rerating

Samchem – Chemical and distribution business is seeing improvement in performance.

Bahvest @56 Sen. – Monitor closely when the BV Warrant expire on 20 Aug 2024 the share may vroom vroom. New shareholders and management would have cleaned out the mismanagement and gold pilferage.

$DUFU / 7233 (DUFU TECHNOLOGY CORP. BERHAD) $NOTION / 0083 (NOTION VTEC BERHAD) $SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) $RGB / 0037 (RGB INTERNATIONAL BHD) $DELEUM / 5132 (DELEUM BERHAD)

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MADAM CHOU LEE SIN

DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Dealings Outside Closed Period

Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - MR SIN KHENG LEE

Changes in Director's Interest (Section 219 of CA 2016) - MR SIN KHENG LEE

Changes in Director's Interest (Section 219 of CA 2016) - MADAM CHOU LEE SIN

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) Notes from Archidex KLCC 2024

More and more, I start to take note of industrial exhibitions to see the actual products of the companies rather than relying on just reports and news. As they say, there's really no replacing on grounds scuttlebutt when you're thinking of a long term investment. @penglam and @realalvinang have bene following this company for the longest time; and unfortunately share price had rallied immensely this week already. Nevertheless, I think it's worth reading if you're interested about the company and its products.

Both Michelle and Melissa are working hard at expanding the business after taking over from their Father and Grandfather (Sin Kean Boon, thus SKB); shifting their focus onto more specialized higher margin products and carving a niche for themselves, which seem to be paying off well. I think they are going in the right direction.

For those who want to go, it's not too late to visit the exhibition at KLCC-- I believe tomorrow will be the last day. You can check out products from overseas as well as from other listed companies too.

Anyway, let's get to it:

1. All their products can be made to operate automatically or manually, depends on clients’ requests. Generally, auto is preferred. The shutters can be remote controlled from a central control room. They can also provide a backup power supply for emergency use cases. Nowadays, they mainly supply for industrial use. Very minimal for residential purposes. Their products are in high demand especially for warehouses. Their shutter speeds can be around 5-500mm per second. For the BOMBA test, the speed of opening and closing is very important. Typical lifespan of a roller shutter can be 10-15 years; but if it’s used frequently it can last even longer. Typically, no maintenance is required, however they do provide some maintenance services if customer requests for it. There are no regulations/requirements for replacements of old shutters for now.

2. Typical project lead time involves surveying customers’ sites and planning the design, then the manufacturing and subsequently delivery and installation, takes around 6 weeks. If by tender basis, the process might take a bit longer as customer will take some time to evaluate and pick. Historically they have always met the deadlines and never experienced delays in delivery once the dates have been set. However, lately they are seeing strong demand, and the lead time has been extended slightly to max around 8 weeks.

3. SKB’s insulation shutters are still the market leader in Malaysia, with certifications from local and international bodies. They are not the cheapest, but they are confident in their capabilities thus able to charge higher price and customers are willing to pay.

4. BOMBA has been stricter lately, and all new buildings must meet the Bomba requirements and witness testing. SKB is seeing strong demand for their fire insulated shutters as one of the few Bomba certified products in the market.

5. Powerless Auto Close Flood Shutter was the main highlight of their exhibition. It was invented last year; first ever of its kind made in Asia. Now they are starting to promote it. Seeing good demand as flash flood incidents are getting more widespread. Yes they confirmed IOI Mall Puchong is using it, but didn’t disclose where else the flood shutters are installed at.

6. Their flood shutters passed the SIRIM Malaysia test, which is not easy as it has to meet a lot of criterion including 2400mm height of water volume as well as impact testing, and must be leak proof throughout. It’s not that difficult to retrofit the flood shutters to replace older installations if the client requests for it.

7. Data Centers? Yes they do participate however they do not directly bid for DC projects. They get requested from contractors for quotations or to bid together.

8. Which of their products are being used for DC? A variety, including steel doors, flood shutters, insulated shutters but not so much on the racking. They didn’t disclose % of sales to DC usage.

9. They don’t have to create specific products to cater to DC, because their products are already meeting the spec requirements.

10. Racking Segment: Very well-known and used in Oceania (Australia and NZ). Their racking system is resilient to earthquakes; there was a case where an earthquake happened and their racks didn’t crumble.

11. New plant: Located in Puncak Alam, to replace the old existing KD plant which is over 20 years old. Estimated completion by around end of next year. It is a bigger and more modern plant with better automation capabilities, showroom and display etc.

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD)

3 July 2024

SKB Shutters Stock Code 7115

https://cutt.ly/zefvrN7E

A GEM WITH HUGE POTENTIAL FOR UPSIDE WITH ITS PROPOSED NEW 9.8 ACRES NEW FACTORY IN SETIA ALAM ECO BUSINESS PARK TO BE READY IN LATE 2025 FOR ITS EXPANSION PLAN FOR NEW PRODUCTS. CURRENT PLANT CAPACITY IS FULL. GROWTH IN DATA CENTRES WILL BE DRIVING UP THE DEMAND FOR ITS fire-retardant doors and shutters, insulated fire shutters, and specialized warehouse racking systems given its products meet meeting BSI and UL (American) standards required by MNC Data Centres.

The Co in our opinion is so much undervalued given its business potential and asset undervaluation.

Current Stock Price and Valuation:

SKB Shutters is currently trading at 83 Sen, which appears to be a bargain considering its potential. The share price has ranged from 30.5 to 86 over the past year.

Based on FY 2023 earnings per share (EPS) of 11.36 Sen, the current P/E ratio is 7.31. However, projections for FY 2024 suggest an EPS of 12.0 Sen, supporting a higher valuation range of RM1.08 Sen to RM1.20 per share based on P/E ratios of 9 to 10.

Warrant at 31.5 Sen is trading at a discount with expiry date 10 Feb 2025 and exercise price at 45 Sen is also a bargain albeit you need to note it is expiring on 10 Feb 2025.

Business Strategy and Growth Potential:
• SKB Shutters is shifting towards higher-margin products such as fire-retardant doors and shutters, insulated fire shutters, and specialized warehouse racking systems. This strategic move has enabled the company to maintain a gross profit margin of around 30%.

• The upcoming completion of a new 9.8-acre factory in Setia Alam Eco Business Park by late 2025 is expected to support further expansion and accommodate new product lines, contributing to future revenue growth.

Business Strategy and Growth Potential:
• SKB Shutters is shifting towards higher-margin products such as fire retardant doors and shutters, insulated fire shutters, and specialized warehouse racking systems. This strategic move has enabled the company to maintain a gross profit margin of around 30%.

• The upcoming completion of a new 9.8-acre factory in Setia Alam Eco Business Park by late 2025 is expected to support further expansion and accommodate new product lines, contributing to future revenue growth.

Market Position and Clientele:
• The company's products are used by major multinational corporations (MNCs) including Lam Research, Micron, and Intel, indicating strong market acceptance and reliability of its products.

• Expansion into new sectors such as data centres and international markets (ASEAN countries, overseas roadshows) is expected to drive future revenue growth.

The book value of the 12 acres (522,720 sq ft) factory land in Kota Damansara is RM58,300,013 equivalent to RM111.53 per sq ft. The market value from my research is RM300 to RM350 PSF. At RM300 PSF, there could be a revaluation surplus of RM98.517 mil or about 75 Sen per share which is more than its current market capitalization.

A new powerless auto close (functioning without electricity during flood) flood protection shutter (SEE ATTACHED pdf FILE) which is PRICE 10 TIMES THE CONVENTIONAL SHUTTERS had been launched on a low profile as Company does not have the capacity to mass market it. Orders received and Installations had been done in Klang Valley premisses to prevent basement carpark flood and also MNC and factories in Penang. Roadshows is going on overseas to promote the products. SKB Shutter is not your traditional shutter company. The Company had moved away from making shutters for business premise and shopping malls.

The Company is thriving on higher margin product (you can observe its gross profit margin is about 30% from the attached Excel Financial Summaries) with its quality products, uninsulated fire shutter, insulated fire shutter, fire retardant metal doors and shutters meeting BSI and UL (American) standards. It also manufactured warehouse storage, racking structure and handling system meeting BSI and UL standards. All IKEA outlets in Malaysia used its specialised shutters and warehousing racking structure, including Philippine outlet. Thus, the Co has been gradually phasing out the lower margin products and currently able to achieve and maintain a gross profit margin of around 30%.

Little did investors know that all the MNC new buildings around Batu Kawan and across Malaysia with stringent security and fire protection partitions used SKB products. Company like Lam Research, Micron, Infineon, Intel Texas Instrument and all other big MNC. Company is riding on the current wave of FDI investments and will be very actively involved with various global Data Centre Players setting up in Kulai carrying its momentum of growth in top and bottom line. Business opportunities also arise in ASEAN countries especially Vietnam. The demand for its fire-retardant metal doors and shutters meeting BSI and UL (American) standards and racking systems by all Data Centres will be driving its top and bottom-line growth moving into FY2025.

Thus, the demand for its products by data centres will be a catalyst for relating by Mr. Market.

The challenging economic environment had not deterred SKBC from charting a double-digit growth, as revenue grew by 51% from RM74.49 million in FYE 30 June 2022 to RM112.14 million in the financial year 2023 and further growth in FY 2024.

The Group’s profit before tax for the year ended 30 June 2023 is RM18.363 million against RM12.291 million for the corresponding financial year, representing an increase of 49.40% mainly due to the increase in revenue.

The Group registered a revenue of RM84.505 million for 9 mth YTD as compared to RM77.669 million for the corresponding financial year, representing an increase of RM6.836 million of 8.80% due to increase in sale of shutters and steel door products. The Group’s profit before tax for 9 mth YTD to 31 March 2024 is RM15.02 million against RM12.557 million for the corresponding financial year, representing an increase of RM2.463 mil or 19.6% mainly due to the increase in revenue from sale of shutters, steel doors and racking products.

For the current Q3 quarter ended 31 March 2024, the Group registered a revenue of RM30.721 million as compared to the preceding quarter of RM29.039 million, representing an increase of RM1.682 million or 5.797%. The increase was mainly due to increase in sale of shutters and racking products. During the current quarter, the Group recorded profit before tax of RM6.114 million as compared to RM5.271 million in the preceding quarter, representing an increase of RM0.843 million or 16.0%.




Financial Information
Market Capital (RM): 110.49 mil @83 Sen
Number of Share: 133.12 m
Number of Warrant: 66 million exercise price 45 Sen
Warrant Maturity: 10 Feb 2025
EPS FY 2023 (cent): 11.36
P/E Ratio: 7.31
NTA: RM 95 Sen
ROE: 11.71%
CAGR Revenue: 11.8%
CAGR PAT: 49.6 %

OVERVIEW OF THE GROUP’S BUSINESS AND OPERATIONS

SKB Shutters Corporation Berhad (“SKBC”) specializes in manufacturing of roller shutters, steel doors, fire retardant doors and shutters and storage and handling system and is listed on the Main Market of Bursa Malaysia Securities Berhad since 28 March 2001. SKB Shutters Manufacturing Sdn. Bhd. and SKB Storage Industries Sdn. Bhd. are main subsidiaries of the Group. Following the Group’s listing on the stock exchange, its main objective has led to the expansion in its regional coverage, product innovation, manufacturing capability and capacity. The Group strives to achieve the vision of being recognized as the largest roller shutter and storage system manufacturer in South East Asia. For the financial year ending 2023, the Group’s mission is to be the preferred supplier of roller shutters, steel doors and storage system products in the industry and to enhance shareholders’ value. In pursuing our mission, we strategize our journey by providing the highest-quality products, with sales and delivery services that continuously exceed customers’ expectations and providing opportunities for employees to excel and be rewarded. Therefore, research and development and product testing for roller shutters to meet local regulatory requirements, engineered storage racking systems to earthquake- prone regions and many more will always be carried out by our team.


Disclaimer

This publication is not a buy or sell call of the company and the contents of this publication should not be considered as professional financial investment advice or buy/sell recommendations. This publication (analysis) has been written for information purposes and general guidance on matters of interest for discussion only and does not constitute professional advice or legal opinion. The information contained in this publication (analysis) should not form the basis of any decision as to a particular course of action. You should not act upon the information contained in this publication without obtaining specific professional advice. Therefore, every investment decision and its associated risks are the responsibility of the investor.

Above analysis is prepared by the author free of charge solely for educational purpose and discussion in the group consented by the author and shall not constitute an investment advice or recommendation to sell and/or buy the share(s) mentioned in this analysis. The views are based on the author’s assumptions and estimations as of this date and subject to change, for educational and informational purposes. Please consult your licensed adviser in any of your investment decision.
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Additional Listing Announcement /Subdivision of Shares

Additional Listing Announcement /Subdivision of Shares (Amended Announcement)

Change of Address

Additional Listing Announcement /Subdivision of Shares

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): Arbitrage Opportunity?

SKBSHUT's share price has been consistently trading above its support level of RM0.655, and for the past four trading days, it has remained above RM0.675. Currently, the share price is at RM0.69, but it might face resistance at RM0.715.

Regarding SKBSHUT-WA, the warrant issued by SKBSHUT, which can be converted into the mother share before February 10, 2025, it is currently trading at RM0.215. It's important to note that it is trading at a premium.

Current Price: RM0.215
Strike Value: RM0.45
Ratio: 1:1
Premium: -0.025
Premium (%): -3.62%

The strike value is the amount needed to convert each warrant into a mother share. The calculation is as follows:

RM0.215 (Warrant Price) + RM0.45 (Strike Price) = RM0.665, whereas the current share price is RM0.69.

This indicates a discount of 3.62%, as shown by the premium calculation. However, it's important to consider conversion fees to determine whether it is worthwhile, and it is advisable to consult with your remisier about this. Although the warrant trading at a discount might seem attractive, caution is advised as there might be underlying reasons for this discount that could have been overlooked.

Additional Listing Announcement /Subdivision of Shares

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): In the Bullish Trend

In technical analysis, the cup and handle pattern is considered a reliable bullish signal. This pattern typically indicates that after a period of consolidation, a stock's price may begin a new upward trend.

In the chart of SKBSHUT, we can clearly observe the formation of this pattern:

📌 Cup Phase: The stock price experiences a rounded bottom over an extended period, forming the left side and bottom of the cup. This indicates that the market has undergone sufficient consolidation and investor confidence is gradually recovering.
📌 Handle Phase: On the right side of the cup, the stock price undergoes a brief adjustment, forming a small downward handle. This phase is usually the final shakeout, clearing out short-term profit-taking positions and preparing for the next upward movement.
📌 Breakout: Recently, SKBSHUT's stock price has broken through the resistance level of the handle formation, which usually signals the start of a new upward trend. This is a positive indicator, suggesting increasing market interest in the stock.

Resistance levels: RM 0.775, RM0.825
Support levels: RM 0.655, RM 0.605

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): Growing Alongside the Industrial and Logistics Sectors

Here are several factors that could position SKBSHUT well in the coming quarters:

📌 Potential Growth in Demand for Roller Shutters
With the emergence of large infrastructure and real estate projects in Malaysia, the demand for roller shutters is expected to rise. SKBSHUT, with its extensive experience and diverse product line in manufacturing roller shutters for industrial, commercial, and residential use, is poised to benefit. These doors provide security and feature soundproofing and fire resistance, making them attractive for new projects.

📌 Market Demand for Storage Racking Systems
The construction of large warehouses, logistics centers, and commercial buildings will significantly increase the need for efficient storage racking systems. SKBSHUT offers a variety of storage racking systems, including light, medium, and heavy-duty options, catering to different storage requirements. With the logistics and warehousing industry's growth, SKBSHUT is likely to find new opportunities in this sector.

📌 Prospects for High-Speed Doors
The demand for high-speed doors in parking lots, logistics centers, and industrial areas is gradually increasing. These environments need doors that can frequently open and close to improve efficiency and security. SKBSHUT's high-speed door products meet these needs and play a crucial role in related projects. The ongoing development in the logistics industry is expected to expand the high-speed door market, offering more business opportunities for the company.

📌 Potential Demand for Steel Doors
Industrial and fire doors are essential in large construction projects. SKBSHUT manufactures various steel doors, including industrial and fire doors, to meet these projects' specific needs. As the government promotes infrastructure construction, the demand for steel doors is expected to rise, providing new growth opportunities for SKBSHUT.

In November 2022, SKBSHUT signed a contract with $ECOWLD / 8206 (ECO WORLD DEVELOPMENT GROUP BERHAD) to acquire industrial land in the Eco Business Park V (9.81 acres) for RM35.97 million, aiming to build a new manufacturing plant to meet market demands. Managing Director Sin Siew Huey stated that SKBSHUT plans to move into the new plant in 2025. The new facility will feature fully automated production lines and optimized energy and production processes. Additionally, the plant will operate as a green building, incorporating rainwater harvesting for recycling and solar equipment to save energy and reduce carbon emissions.

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) Q3FY24 Performance Updates

📌 Revenue: RM30.72mil
📌 PBT: 6.11mil
📌 PAT: 3.86mil

📌 YoY:
Revenue increased by 18% due to increase in sale of shutters and steel door products.
PBT increased by 23% due to increase in revenue.

📌 QoQ:
Revenue increased by 6% due to increase in sale of shutters and racking products.
PBT increased by 16% due to increase in revenue.

📌 Other Update:
💡 The company holds a cash position of RM43.59mil alongside short-term borrowings of RM23.27mil and long-term borrowings totalling RM60.44mil, resulting in a net debt of RM40.12mil.
💡 Positive FCF of RM17.76mil in this quarter.

Quarterly rpt on consolidated results for the financial period ended 31/03/2024

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) closes very strongly today at 0.685, after about almost ~8months of consolidation since the initial spike. Is the market expecting a strong set of results for Q3 FY24?

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD): Disappointing Q2FY24 Results

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) recently released its quarterly report for Q2FY24, highlighting several key updates:

1. Balance Sheet
- Total assets increased by 5.78% to RM240.29 million compared to the previous quarter, with the cash position rising from RM24.33 million to RM36.4 million.
- Total liabilities also saw an uptick of 6.28% to RM118.64 million, driven by an increase in short-term borrowings from RM15.95 million to RM20.91 million, while long-term borrowings decreased from RM64.05 million to RM61.56 million.

2. Profit & Loss
- Quarterly revenue stood at RM29.04 million, marking a 2% decrease YoY, but a significant 17% increase QoQ.
- Profit before tax showed a 9% increase YoY and a notable 45% increase QoQ, reaching RM5.27 million.
- However, profit after tax experienced a 24% decrease YoY, yet increased by 24% QoQ to RM3.38 million. This decrease was largely due to a substantial rise in tax expenses.
- Tax expenses surged by 393% YoY and 108% QoQ.

3. Cash Flow Statement
- The company generated a positive free cash flow of RM6.83 million during the quarter.

4. Opinion
- Despite the management attributing the revenue increase to higher sales of shutters and steel doors products, the report lacked a specific comparison on a YoY basis and also the lack of explanation on increase in tax expense. This leaves investors seeking more comprehensive insights into the company's performance.

Quarterly rpt on consolidated results for the financial period ended 31/12/2023

Titan Weekend Chart Reviews

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD)

Had a good breakout towards the RM 0.63+ regions here and so far still able to hold above its RM 0.60+ immediate support region as a higher low.

If able to sustain, could still breakout towards and beyond its RM 0.66+ major resistance levels soon for an uptrend continuation pattern soon.

Support: RM 0.60 area
Resistance: RM 0.63, RM 0.65, RM 0.66 areas

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General Notes For Friday [19/1/2024]:

$KLSE-KLCI retraced back towards the 1479 points region with an overall negative market sentiment here as we had over 880 counters closing red for the day along with it. Daily trading volume however remained high around the 6 billion mark.

There were no stocks that performed well on the top volumes list today as it was filled with fear and panic selling activities, dominated by the likes of ARTRONIQ, WIDAD, LEFORM, EDUSPEC, MRCB, MERSEC, and many more. Even the large cap stocks like YTL and YTLPOWR took a hit today.

DXN although had a brief breakout towards the RM 0.72 regions yesterday, retraced back towards the RM 0.67+ support regions today with some selling activities here as the market sentiment tanked.

For now still looking pretty decent here and as long as able to hold a higher low region around the RM 0.67+ regions, could continue to trend back towards the RM 0.70+ regions soon.

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) since breaking out towards the RM 0.86+ major resistance levels, had been consolidating and retracing over the past 5 months here, forming a solid support around the RM 0.535+ major support regions on the daily chart here.

Seems to be holding this region quite well here and if able to sustain, could rebound back towards the RM 0.60 - RM 0.65+ major resistance levels soon here. For now forming strong BOD signals on the daily chart, suggesting a higher low region here already.

Will be monitoring SKBSHUT closely

Among others, $UNIQUE / 0257 (UNIQUE FIRE HOLDINGS BERHAD) is actually holding its ground pretty well too around the RM 0.315+ main uptrend support regions despite the panic selling spree that's spreading across the market as a whole.

For now if able to hold above this region, could bounce back towards the RM 0.34 - RM 0.35+ major resistance levels soon here. So far still looking like it's trading on a pretty healthy uptrend here.

Will be monitoring UNIQUE closely

General Notes For Wednesday [20/12/2023]:

$KLSE-KLCI had a decent performance today as it was still able to close green around the 1465 points region with the property sector leading the market. However, the market sentiment cannot be said to be a positive one as we still had over 430 counters closing red for the day.

Daily trading volume remained decent around the 3.7 billion range. Main stocks that showed strong buying momentum would be the likes of IWCITY, UEMS, EKOVEST, SCIB, ASDION, YTL, KAB, SIMEPROP, YTLPOWR, and MERSEC. All of which were able to sustain their rallies throughout the day on the top volumes list.

$IWCITY / 1589 (ISKANDAR WATERFRONT CITY BERHAD) was definitely one of the leaders for today as it broke out from its RM 0.65 main downtrend channel resistance and rallied all the way towards the RM 0.69+ regions with huge volume and buying momentum today despite the negative sentiment.

So far looking quite strong here after 4-5 months of retracement and consolidation without much volume and action. For now as long as able to hold above the RM 0.65 immediate support levels, could breakout back towards the RM 0.74+ major resistance levels soon.

Will be monitoring IWCITY closely here as it should be one of the leaders for the Johor-related property counters.

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) since breaking out towards the RM 0.75 major resistance levels, had been retracing consistently over the past 2 months all the way back towards the RM 0.55+ major support levels.

Today, it was finally able to rebound back towards the RM 0.58+ regions with decent volume after strong BOD signals had been formed over the past few days on the daily chart, suggesting a potential dip region here already.

If able to sustain, could rebound back towards the RM 0.66 - RM 0.68+ main resistance levels soon on the daily chart. Will be monitoring SKBSHUT closely

Titan Weekend Chart Reviews

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD)

Had been retracing over the past few weeks from the RM 0.75 major resistance levels all the way towards the RM 0.58+ support.

For now trading above the RM 0.58+ major support levels with strong BOD signals on the 4 hour chart.

If able to hold, could rebound back towards the RM 0.66+ levels soon.

Support: RM 0.585, RM 0.565 areas
Resistance: RM 0.60, RM 0.615, RM 0.635, RM 0.65 areas

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) what company

General Notes For Friday [1/12/2023]:

$KLSE-KLCI was finally able to rebound today back towards the 1452 points region with an overall mixed sentiment as we still had over 620 counters closing red for the day. Daily trading volume however was able to hit a staggering 4.2 billion, which is pretty good.

Main stocks that showed strong buying momentum would be the likes of SCIB, DCHCARE, CDB, RENEUCO, and SIME. All of which were able to sustain their rallies throughout the day on the top volumes list despite the mixed sentiment.

$SCIB / 9237 (SARAWAK CONSOLIDATED INDUSTRIES BERHAD) shares had been trending upwards in a parabolic manner since March around the RM 0.12+ major support levels, towards breaking out to RM 0.77+ today with huge volume despite being massively overbought.

Although I have no idea why its share price had been trending upwards in such a manner over the past few months, I have to acknowledge its incredible buying momentum and volume...so far still not showing any sign of weakness yet.

Will definitely be monitoring SCIB here but for any entries, have to be extremely careful as the stock barely retraced.

$RGB / 0037 (RGB INTERNATIONAL BHD) although attempted to breakout from its RM 0.31 immediate resistance levels over the past few days, miserably failed as it was met with huge selling pressure which led the stock to retrace back towards the RM 0.29 levels today.

RGB had broken below its main uptrend channel support here and could be heading back towards the RM 0.275 - RM 0.28 major support levels in the coming weeks if this sell down continues.

So far not looking that great here for RGB, and have to monitor with caution if you are planning any entries as it is still a fundamentally good company.

$SKBSHUT / 7115 (SKB SHUTTERS CORPORATION BERHAD) since its earlier breakout towards the RM 0.75 major resistance levels, had been retracing over the past 2 weeks here, all the way towards the RM 0.585 - RM 0.60+ major support levels on the hourly charts.

So far forming strong BOD signals here on the 4 hour chart, suggesting an immediate dip region already and if able to hold this support level, could at least stage a rebound back towards the RM 0.66+ immediate resistance levels soon.

Will be monitoring SKBSHUT closely

Expecting the market to cool off for the coming 1-2 weeks so still gotta be patient here.