AW KLSE Stock Trading Channel

95% revenue of SCGBHD is from local market and only 5% in foreign currency.

We see Selling pressure now is a chance .

As they say: contrarian always win . Don’t be a sheep

In the latest reported financial year (FYE 2024):
• ~95.1% of revenue came from Malaysia — in MYR.
• ~4.9% was from overseas markets (mainly the US) — in USD or foreign currencies.

Import Cost Benefits (Materials in USD)

SCGBHD mainly manufactures locally, but its raw materials (especially copper and aluminium) are priced in USD and imported.

Estimated Cost Savings

In manufacturing companies like SCGBHD, raw materials often make up a large portion of cost of goods sold (COGS) — for cable makers this can easily be 40–60% of revenue (industry norm).
• Suppose raw materials are 50% of revenue → on RM1.35 b = ~RM675 m COGS.
• Assume 60–70% of that cost is priced in USD → about ~RM405 m to RM472 m exposed to USD.
• If MYR strengthens by 10%, the MYR cost of USD materials falls by ~10% → potential cost saving of ~RM40–RM47 m.

👉 Cost savings from a stronger Ringgit could be ~3–3.5% of revenue, which directly lifts margins (if selling prices are unchanged).

Southern Cable Group Berhad can be affected by foreign exchange (forex) movements, but the impact is indirect and depends on specific parts of its operations and financials. Here’s a quick breakdown:

🧾 1. Foreign Currency Exposure
• Southern Cable primarily operates in Malaysia, and most of its revenue and borrowings are in Malaysian Ringgit (MYR). This means its core income and debt costs are mainly local-currency and less directly sensitive to forex swings.

📦 2. Import Costs
• The company manufactures cables and wires using raw materials like copper and aluminium, which are typically priced in US dollars (USD) on global markets. If the Ringgit weakens vs USD, its material costs could rise, squeezing margins if not managed effectively.

🛡️ 3. Forex Hedging
• Southern Cable enters into forward foreign exchange contracts to manage forex risk from USD-denominated payables (e.g., raw materials), reducing the impact of currency volatility on its costs.

🚢 4. Exports & Natural Hedge
• A portion of its revenue comes from exports (e.g., to the US). Export income in USD can act as a natural hedge against forex risk — when USD strengthens, export earnings can be worth more in MYR, offsetting higher import costs.

📉 5. Overall Impact on Financials
• Southern Cable doesn’t report that forex swings materially affect its performance, but exposure exists via imported raw materials and international sales. Effective hedging practices help limit volatility in earnings tied to currency moves.

2026 first one. 👀

Now or never

Last stock of the year