KUALA LUMPUR (June 25): Thermo-vacuum-formed plastic packaging products manufacturer SCGM Bhd, whose share price hit a record high today, is proposing a bonus issue of 40 million new shares on a one-for-two basis.
SCGM (fundamental: 1.5; valuation: 1.5) told Bursa Malaysia this evening that the bonus issue is the most appropriate avenue of rewarding the existing shareholders, while simultaneously enhancing its capital base.
The group also expects the proposed corporate exercise to increase its issued and paid-up share capital to a level which would be more reflective of its current scale of operations and assets employed.
SCGM noted its proposal today requires the approval from Bursa Malaysia and shareholders.
Its share price has been on the rise from RM1.81 on Jan 2 to RM3.70 today. The stock has more than doubled year to date, with a market capitalisation of RM296 million.
SCGM's net profit for the fourth financial quarter ended Apr 30, 2015 (4QFY15) has doubled to RM5.14 million or 6.42 sen, from RM2.51 million or 3.14 sen per share in 4QFY14. Cumulatively, the group's FY15 profit was RM15.65 million or 19.57 sen per share, up 36% from RM11.49 million or 14.36 sen per share in FY14.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)