SCG operates 3 core businesses consists of Cement and Construction related business, Chemicals business (SCGC) and Packaging business (SCGP).
| 6M24 | 6M23 | 2023 | 2022 |
|---|
| Revenues | 258,786.53 | 276,985.21 | 528,531.42 | 582,292.21 |
| Expenses | 249,023.64 | 247,454.70 | 494,497.98 | 563,097.34 |
| Net Profit (Loss) | 6,132.79 | 24,607.98 | 25,914.98 | 21,382.35 |
| Assets | 949,478.11 | 942,017.97 | 893,600.63 | 906,489.79 |
| Liabilities | 494,060.89 | 483,279.89 | 452,003.99 | 454,065.36 |
| Shareholders' Equity | 379,676.91 | 380,871.26 | 363,961.76 | 374,254.96 |
| Operating | 10,179.38 | 21,324.31 | 44,008.44 | 29,718.93 |
| Investing | -9,011.22 | -20,319.84 | -10,631.16 | -32,946.93 |
| Financing | 11,439.69 | -11,128.12 | -46,586.01 | 24,399.46 |
| EPS (Baht) | 5.11 | 20.51 | 21.60 | 17.82 |
| GP Margin (%) | 14.89 | 15.40 | 14.70 | 13.74 |
| NP Margin (%) | 2.19 | 8.74 | 4.56 | 3.04 |
| D/E Ratio (x) | 1.08 | 1.05 | 1.02 | 1.00 |
| ROE (%) | 1.96 | 7.12 | 7.02 | 5.78 |
| ROA (%) | 2.33 | 4.14 | 4.72 | 3.38 |
SCG Passion for Inclusive Green Growth towards the ways to create Net Zero society with an example of highlight from business units are as following;
- SCG Cement and Green Solutions, to replace Ordinary Portland Cement (OPC) with Low Carbon Cement at 100% by 2024.
- SCGC to elevate HVA and green polymer products offering.
- SCGP targets to achieve 100% total sales volume of recyclable, reusable & compostable products by 2030.
- SCG Cleanergy focused on promoting electricity trading via smart grid platforms and clean energy storage.
SCG has engaged SD principles in operations by pushing forward the ESG 4 Plus targets including:
- Net Zero by 2050
- Go Green, mainly develop environmentally friendly products
- Reduce inequality
- Enhance collaboration
Plus Trust through Transparency
For more information: https://www.scgsustainability.com/
SCG has actively enhanced its business agility and operations.
- Energy Cost Management: increased the use of alternative fuels to 47% in Cement business in Thailand
- Focus on Growth Potential Business: comprehensive solar energy solutions for residential, plants, and industrial estates
- Improvement of Storage, Transportation, and Distribution of Products: employing technology for delivery planning and goods receipt to reduce work time, minimize damage, and reduce errors in the receipt and delivery process.
- AI for Operation Efficiency: SCGC utilizes AI solutions from REPCO NEX to precisely manage machinery maintenance, achieving 100% reliability.
- Deliver solutions that meet both the functional and customers' need: CPAC’s compact concrete mixer trucks, which are designed for urban construction with narrow alleys, facilitating efficient cement usage and reducing waste.
SCG reported Q2/24 Revenue from Sales of 128,195 MB, an increase of +3% QoQ from higher sale volume from SCG Chemicals and increase of +3% YoY mainly from the incremental sales from SCG Chemicals and SCGP.
EBITDA registered 16,266 MB, increasing +29% QoQ, mainly from seasonal dividend which was offset by the MTT incident. However, EBITDA decreased -18% YoY, mainly from lower chemicals spreads, and the MTT incident in SCG Chemicals.
Profit for the Period was 3,708 MB, an increase of +53% QoQ mainly attributed to seasonal dividend income from SCG Investment. Likewise, Profit for the Period declined -54% YoY, and Profit excluding extra items declined -29% YoY, following decreased chemicals spreads and the Long Son Petrochemicals Complex (LSP) expenses.
SCG Cement and Green Solutions, increased penetration rate of Low carbon cement to 86%, with the introduction of Low Carbon Cement (Gen 2), which can reduce CO2 emissions by 15-20%. SCG launched the first low-carbon cement in Vietnam.
SCGC collaborates with Dow, to developed a plastic recycling business across the entire value for the first time in the Asia-Pacific region. The goal is to develop recycling technology to convert over 200,000 TPA of plastic waste in SEA into circular products by 2030.
SCGP has expanded its packaging business into medical supplies and labware by investing in VEM, a manufacturer of high-performance polymer injection molding parts. This investment will enhance the production capabilities of Deltalab and Bicappa Lab.
SCGD targets Revenue at 2X by 2030, beginning with operational commencement of SPC LT by COTTO plant, with a production capacity of 1.8 M.sqm/y, while continuing to HVA and durable Glazed porcelain tiles in Vietnam and Thailand, which currently under construction which expected to commercialized by this year.
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
| as of 28/06/24 | SCC | CONMAT | SET |
|---|---|---|---|
| P/E (X) | 22.85 | 17.09 | 17.05 |
| P/BV (X) | 0.72 | 0.83 | 1.22 |
| Dividend yield (%) | 2.67 | 3.64 | 3.53 |
| 28/06/24 | 28/12/23 | 30/12/22 | |
|---|---|---|---|
| Market Cap (MB) | 270,000.00 | 367,200.00 | 410,400.00 |
| Price (B/Share) | 225.00 | 306.00 | 342.00 |
| P/E (X) | 22.85 | 13.50 | 13.90 |
| P/BV (X) | 0.72 | 0.96 | 1.04 |
