SKPRES
Skp Resources Bhd
Company Background
$SKPRES / 7155 (SKP RESOURCES BHD)
Research Report by TA
$SKPRES / 7155 (SKP RESOURCES BHD)
Research Report by PBIV
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by Public
Outperform – TP RM1.30
"Another Good Quarter”
SKP Resources (SKP) recorded a sequentially stronger quarter, with a 1QFY25 net profit of RM28.3m (+31.3% YoY, +20.9% QoQ) coming on the back of an improved RM505m (+17.1% YoY, +11.6% QoQ) revenue. Net profit margin was also better at 5.6% (1QFY24: 5.0%) as greater economies of scale was attained on higher production levels. Coming in line with our and consensus estimates at 23% of full-year numbers, we remain encouraged by headway being made by the Group in expanding its customer base while also sustaining and growing order flows from its existing key customers. Looser monetary conditions in the months ahead should aid the recovery in consumption spending, benefiting the Group positively. Our earnings estimates are kept unchanged. We remain affirmed of SKP’s long-term growth prospects and maintain our Outperform call with a PE-derived target price of RM1.30 based on 15x multiple to CY25 EPS.
Analyst:
Ching Weng Jin
research@publicinvestbank.com.my
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by RHB
Buy – TP RM1.31
"Solid Start To a Year Of Recovery; Keep BUY”
Maintain BUY and TP of MYR1.31, 24% upside and c.4% FY25F (Mar) yield. SKP Resources’ 1QFY25 results met expectations on the normalisation of Customer X’s orders and steady profit margin driven by cost optimisationinitiatives. Earnings momentum should accelerate sequentially driven by inventory build-up in preparation for the year-end festive demand. We continue to like SKP as a proxy to capitalise on the recovery of global demand for consumer electronics and opportunities arising from the trade war diversion
Analyst:
Soong Wei Siang
soong.wei.siang@rhbgroup.com
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by TA
BUY – TP RM1.43
"A Good Start”
No change to our target price of RM1.43, based on unchanged 15x CY25 earnings. Reiterate a Buy call on the stock.
Key downside risks include lower-than-expected utilisation and inability to secure new contract manufacturing jobs.
Analyst:
Chan Mun Chun
mcchan@ta.com.my
SKP Resources' 1Q Profit Up 31%
Electronic manufacturing services (EMS) firm SKP Resources Bhd (KL:SKPRES) has reported a 31.3% increase in its net profit to RM28.34 million for the first quarter ended June 30, 2024 (1QFY2025), from RM21.59 million a year ago, due to better cost optimisation and higher sales performance.
Revenue for the quarter surged 17.1% to RM505.53 million from RM431.61 million in the previous year’s corresponding period.
Quarterly earnings per share rose to 1.81 sen from 1.38 sen per share in 1QFY2024.
In terms of outlook, the company said it will continue to expand its printed circuit board assembly (PCBA), injection moulding and engineering capabilities to enable more product offerings. The company also said it is mindful of customer concentration risk and is looking to diversify its customer base.
At Monday’s closing, shares in SKP Resources closed down one sen or 0.9% to RM1.06, giving it a market value of RM1.66 billion. Year to date, the stock is up 34.2%.
$SKPRES / 7155 (SKP RESOURCES BHD)
Source: https://cutt.ly/memrf2mK
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by TA
Buy – TP RM1.43
“Seeing Better Earnings Outlook"
Following our recent meeting with management, we remain upbeat about SKP’s outlook, underpinned by better order visibility from its key customer. On top of that, the group recently managed to secure 2 new customers, with an estimated total annual revenue to be around RM140.0mn. Meanwhile, the group has been receiving more business inquiries to provide assembly services thanks to trade diversion. Currently, the group is in the midst of discussion with a few prospective customers to fill up the extra floor capacity. Overall, we maintain a Buy call on SKP with an unchanged target price of RM1.43.
Analyst:
Chan Mun Chun
mcchan@ta.com.my
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by RHB
Buy – TP RM1.31
“Catching a Glimpse Of The Recovery Picture"
Maintain BUY and MYR1.31 TP, 10% upside and c.4% FY25F (Mar) yield. We visited EMS companies under our coverage in Johor and came back feeling positive on the near-term sector earnings prospectus and learnt that customer diversification is gathering pace. We continue to like SKP Resources as a proxy to capitalise on the recovery of global demand for consumer electronics and opportunities arising from the trade war diversion.
Analyst:
Soong Wei Siang
soong.wei.siang@rhbgroup.com
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
$SKPRES / 7155 (SKP RESOURCES BHD)
My entry idea:
➡️ Buy level : 1.140
❌ Stop loss : 1.080 (10.83%)
💲 Take profit 1 : 1.830 (59.13%)
💲 Take profit 2 : 2.340 (103.48%)
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
PETALING JAYA: SKP Resources Bhd is likely to register revenue of RM2.15bil for its financial year ending March 31, 2025 (FY25) driven by higher sales from its key customers as on the back of improved order visibility as well as new customers.
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by CGS
Add – TP of MYR 1.35
“Raising EPS and TP on improving orders”
Our recent conversation with management suggests that order visibility has improved from its key customer since the beginning of the year, with production for several household product SKUs seeing improving utilisation rates, aligning with inventory restocking and gradual demand improvements. In addition, the group has been receiving several business inquiries from new customers to provide backend assembly services related to household products. SKP has onboarded two new customers earlier this year, which are slated to ramp up production by 2QFY3/25F with a targeted combined annual revenue of RM150m.
Analyst(s):
Shafiq KADIR
shafiq.abkadir@cgsi.com
Dharmini THURAISINGAM
dharmini@cgsi.com
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by PIB
Outperform – TP of MYR 1.30
“Recovery On Track ”
SKP Resources (SKP) reported a healthier 4QFY24 net profit of RM24.7m (+53.1% YoY, +5.3% QoQ) on the back of steady revenue contribution of RM458.8m (-5.1% YoY, +1.3% QoQ), the latter reflective of gradual recovery in product demand. Profit margins also improved as management undertook optimization exercises to mitigate hikes in production cost amid reduced economies of scale from lower sales orders. Cumulative FY24 net profit of RM96.8m (-31.1% YoY) is above our and consensus estimates a106% and 105% of full-year numbers respectively.
Analyst(s):
Ching Weng Jin
research@publicinvestbank.com.my
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by Kenanga
Outperform – TP of MYR 1.35
“Turning the Corner”
SKPRES’s FY24 results beat expectations. Nonetheless, its FY24 core net profit still fell 31% YoY on lower orders across its product portfolio. It guided for positive outlook driven by improved orders from its existing customers and the potential onboarding of two new customers. We lift our FY25F net profit forecast by 14%, increase our TP by 59% to RM1.35 (from RM0.85) and upgrade our call to OUTPERFORM from MARKET PERFORM.
Analyst(s):
Samuel Tan
samueltan@kenanga.com.my
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by TA
Hold – TP of MYR 1.15
“4QFY24 Driven by Cost Optimisation Effort”
Although no dividend was declared during the quarter (YTD: nil), we expect SKP to declare a final dividend later, as done in previous years. Based on our dividend payout assumption of 50%, we estimate a final dividend of 3.0sen, which implies a dividend yield of 2.7% at current levels. SKP has adopted a dividend payout policy of a minimum of 50% of its net profit.
Analyst(s):
Chan Mun Chun
mcchan@ta.com.my
$SKPRES / 7155 (SKP RESOURCES BHD)
Research by RHB
Buy – TP of MYR 1.31
“Demand Recovery To Propel Earnings Upcycle; U/G”
Upgrade to BUY from Neutral, with higher MYR1.31 TP (from MYR0.78), 20% upside, c.4% FY25F (Mar) yield. SKP Resources’ FY24 results outperformed expectations on higher-than-expected sales. Outlook is promising, considering the rebound in orders from its key customer, while its plan to diversify its earnings stream is progressing well. This prompted us to raise our valuation yardstick as we view SKP as a proxy to the global demand recovery and opportunities from the trade war diversion.
Analyst(s):
Soong Wei Siang
soong.wei.siang@rhbgroup.com
Quarterly rpt on consolidated results for the financial period ended 31/03/2024
Changes in Sub. S-hldr's Int (Section 138 of CA 2016) - EMPLOYEES PROVIDENT FUND BOARD
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