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SCGBHD (0225): SOUTHERN CABLE GROUP BERHAD seeks transfer of listing to Main Market

KUALA LUMPUR (April 28): Cable and wire manufacturer Southern Cable Group Bhd is seeking to transfer its listing status from the ACE Market to the Main Market of Bursa Malaysia.

The group said in a statement that it is aiming for the transfer to take place in the second half of 2021, pending approvals from shareholders, the Securities Commission Malaysia, and Bursa Malaysia Securities Bhd.

According to the group, it registered an aggregated profit after tax (PAT) of RM76 million for the past three financial years from Dec 31, 2018 (FY18) to Dec 31, 2020 (FY20); it also recorded positive net cash from operating activities of RM43.9 million in FY20, and maintained positive cash flow for the same three-year period.

“With this, the group has fulfilled the Securities Commission Malaysia’s Equity Guidelines for the proposed transfer listing, which requires listed corporations to demonstrate uninterrupted profit for the past three to five financial years with an aggregate PAT of at least RM20 million and PAT for the most recent financial year of at least RM6 million, in addition to maintaining positive cashflow from operating activities for the profit track record period,” it said.

Southern Cable’s managing director Tung Eng Hai said the upcoming corporate milestone corresponds with the group’s operational expansion, as it looks to fulfil growing demand in the domestic market, and target new sectors for its cables and wires products.

“The group remained resilient in the past year despite the impact of Covid-19 on the economy, as we continue to fulfil demand for cables and wires in the essential power and telecommunications sectors.

“We also look forward to capturing greater demand going forward from Malaysia’s infrastructure project rollouts and general economic growth,” he said.

Additionally, he is optimistic of expanding into new sectors that would strengthen the group's prospects further.

“Our automotive wires have undergone successful internal trials, and are being commercially evaluated by potential clientele in Malaysia and Vietnam,” he said.

He also expects to commence exports of the group’s industrial cables to a new client in the US, which are targeted to materialise in the second half of 2021.

“Hence, the Main Market transfer reflects our growth story, even as we seek to attract the wider investing community, and increasingly stamp our mark in Malaysia and internationally,” he said.

Southern Cable closed 2 sen or 4% higher at 52 sen today, valuing the group at RM416 million.

http://www.theedgemarkets.com/article/southern-cable-seeks-transfer-listing-main-market

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