Business Overview
SCG operates 3 core businesses consists of Cement-Building Materials business, Chemicals business (SCGC) and Packaging business (SCGP).
Financial Statement
| 6M23 | 6M22 | 2022 | 2021 |
|---|
Income Statement (MB)
| Revenues | 276,985.21 | 313,021.16 | 582,292.21 | 540,705.96 |
| Expenses | 247,454.70 | 293,893.27 | 563,097.34 | 487,855.32 |
| Net Profit (Loss) | 24,607.98 | 18,781.14 | 21,382.35 | 47,173.99 |
Balance Sheet (MB)
| Assets | 942,017.97 | 903,136.59 | 906,489.79 | 861,101.03 |
| Liabilities | 483,279.89 | 435,380.31 | 454,065.36 | 411,092.68 |
| Shareholders' Equity | 380,871.26 | 383,480.91 | 374,254.96 | 365,690.73 |
Cash Flow (MB)
| Operating | 21,324.31 | 11,899.03 | 29,718.93 | 38,800.20 |
| Investing | -20,319.84 | -5,596.53 | -32,946.93 | -65,398.86 |
| Financing | -11,128.12 | 1,234.76 | 24,399.46 | -3,238.20 |
Financial Ratio
| EPS (Baht) | 20.51 | 15.65 | 17.82 | 39.31 |
| GP Margin (%) | 15.40 | 15.41 | 13.74 | 20.58 |
| NP Margin (%) | 8.74 | 6.06 | 3.04 | 10.12 |
| D/E Ratio (x) | 1.05 | 0.93 | 1.00 | 0.91 |
| ROE (%) | 7.12 | 9.22 | 5.78 | 13.74 |
| ROA (%) | 4.14 | 5.71 | 3.38 | 8.74 |
Business Plan
ASEAN expansion Long Son Petrochemicals Company Limited (LSP) has planned for full startup and will add Company’s petrochemicals capacity by 40% from 6.9 million ton to 9.8 million ton per annum.
Transform into 'Green' business, examples are;
- SCGC accelerated the development of green polymer with target of 1 million tons of green polymers sales by 2030.
- Cement-Building Materials business is to replace Ordinary Portland Cement (OPC) with hybrid cement at 100% by the end of 2023.
- SCG Cleanergy participated in clean energy business through solar energy as well as technology and innovation.
High Value Added Products (HVA) As of H1/2023, SCG’s revenue from sales of High Value Added (HVA) Products & Services represented 34% of total revenue from sales.
Sustainable Development Plan
SCG has engaged SD principles in operations by pushing forward the ESG 4 Plus targets including:
- Net Zero
- Go Green
- Reduce inequality
- Enhance collaboration
Plus Trust through Transparency
For more information: https://www.scgsustainability.com/
Business Highlight
- SCG Decor (SCGD) submitted application to offer its newly issued shares, together with Filing documents for IPO to the SEC, and to list its share on the Stock Exchange of Thailand.
- BetterBe Marketplace Company Limited (BetterBe), a company operating an online marketplace in Thailand under the name NocNoc and in Indonesia under the name Renos.id, issued ordinary shares offered to Must Be, a company incorporated by Frasers Property Limited and Thai Beverage PCL group.
- SCGC has entered into JV agreement with Braskem to establish a joint venture company that produces bio-ethylene (Green-Ethylene from ethanol) with the target capacity of 200,000 tons per year and FID is expected in 2024. SCGC will hold a 49% stake in the joint venture, while Braskem will hold the other 51% stake.
Performance and Analysis
Business Performance Summary
SCG reported H1/23 Revenue from Sales of 253,379 MB, a decrease of -17% YoY due to lower Revenue from Sales across all businesses driven mainly by softer chemical prices.
EBITDA registered 32,123 MB, decreasing -24% YoY as a result of lower sales volume and dividend at Chemicals business.
Profit for the Period reported at 24,608 MB, increasing +31% YoY mainly from the one-time gain from fair value adjustment of investment at Cement-Building Materials and Investment businesses. Profit excluding extra items would have been
9,786 MB, which decreased -49% YoY.
Key Milestones
Key development in H1/23
- Cement-Building Materials increased the use of alternative fuel to substitute fossil fuel. By H1/23, it was increased to 40% in cement operations in Thailand.
- SCGC's Circular Economy platform by developing innovative SCGC Green Polymer products based on 4 circular economy principles (Reduce, Recyclable, Recycle, Renewable) with sales over 110,000 tons in H1/23, up from c. 140,000 tons in 2022.
- SCGP built strong growth with Merger and Partnership in Starprint Vietnam JSC, a folding cartons and rigid box packaging manufacturer, as well as develop world-class innovation and packaging solutions of "Bio-based Plastic" from Eucalyptus woodchip with Origin Materials in USA
Risk Management Policy
Enterprise Risk Management Framework as following.
- Strategy Establishment with explicit objectives and risk appetite in managing risks to ensure consistent risk management practice across the organization.
- SCG Risk Management Structure and Responsibilities through every levels in the company’s organizational structure.
- Risk Management Policy through implemented risk management framework to identify risks or business opportunities in an appropriate and timely manner.
- Risk Management Process comprising risks or opportunities identification, risk assessment, risk response, and risk reporting.
- Building a Corporate Risk Culture
Recent Awards and Recognitions
- In 2022, SCG has been ranked the world's no.1 in the Dow Jones Sustainability Indices (DJSI) in the construction materials industry and received the highest score in the environmental part.
- Won 9 rewards from TMA Excellence Awards 2022.
- SCG and Group companies won 6 awards in SET Awards 2022, the role model in corporate sustainability and outstanding innovation creation.
Revenue Structure
Stock Information
SET / PROPCON / CONMAT
| as of 30/06/23 | SCC | CONMAT | SET |
|---|---|---|---|
| P/E (X) | 13.29 | 13.57 | 17.96 |
| P/BV (X) | 1.00 | 1.11 | 1.46 |
| Dividend yield (%) | 2.48 | 3.33 | 3.12 |
| 30/06/23 | 30/12/22 | 30/12/21 | |
|---|---|---|---|
| Market Cap (MB) | 386,400.00 | 410,400.00 | 463,200.00 |
| Price (B/Share) | 322.00 | 342.00 | 386.00 |
| P/E (X) | 13.29 | 13.90 | 9.87 |
| P/BV (X) | 1.00 | 1.04 | 1.29 |
CG Report:
Company Rating:
Major Shareholders
as of 10/04/2023
Company Information and Contact
http://www.scg.com
invest@scg.com
0-2586-4299
1 Siam Cement Road, Bang Sue, Bangkok 10800
Other Trading Info. :
https://www.settrade.com/C04_01_stock_quote_p1.jsp?txtSymbol=SCC
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