For full-year results, SCH achieved net earnings of RM1.6 million, tumbling 75.4% year-on-year (y-o-y). FY16 results were significantly below our estimates due to weaker-than-expected sales coupled with proportionately higher costs in the 4Q. SCH registered a dismal 4QFY16 mainly due to a slump in sales (-20.2% quarter-on-quarter [q-o-q] and -17.7% y-o-y), as well as proportionately higher cost of sales, administrative and marketing expenses. We are unfazed by the disastrous results in FY16 with the record low net profit achieved. We do not rule out the possibility of SCH acquiring a small-scale premix plant and/or mining concessionaire to fast track its ambitious plan.

Source: The Edge Markets October 28, 2016 02:07 UTC