{"id":7299,"date":"2019-09-13T07:03:08","date_gmt":"2019-09-12T23:03:08","guid":{"rendered":"https:\/\/www.smallcapasia.com\/?p=7299"},"modified":"2019-09-13T07:03:08","modified_gmt":"2019-09-12T23:03:08","slug":"sds-group-bhd-7-things-investors-should-know-about-it","status":"publish","type":"post","link":"https:\/\/www.smallcapasia.com\/zh-hant\/sds-group-bhd-7-things-investors-should-know-about-it\/","title":{"rendered":"SDS Group Bhd: 7 Things Investors Should Know about It"},"content":{"rendered":"

On 23 August 2019, SDS Group Bhd (SDS) has opened an invitation to the public where it is issuing its IPO shares at RM 0.23 per share. <\/span><\/p>\n

You may easily download its IPO Prospectus with the links below:\u00a0<\/span><\/p>\n\n\n\n\n
\n

SDS IPO<\/span><\/p>\n<\/td>\n

Part 1<\/span><\/a><\/td>\n<\/tr>\n
SDS IPO<\/span><\/td>\n\n

Part 2<\/span><\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The application for SDS\u2019s IPO shares would be closed on 23 September 2019. Its listing date is tentatively set to be on 7 October 2019. <\/span><\/p>\n

The question is, \u2018Should i subscribe to it at RM 0.23 a share today?\u2019 <\/span><\/p>\n

In this article, I\u2019ll make a list of seven things on SDS before investing its shares:<\/span><\/p>\n

#1: Business Model\u00a0<\/b><\/h2>\n

\"SDS<\/span><\/p>\n

Founded in 1984, SDS is a large-scale manufacturer of bakery products, which is supplying 708 different types of bakery products to 10,000+ customers (grocery stores, schools, hospitals, petrol stations, supermarkets and hypermarkets) that are located across Malaysia and Singapore. <\/span><\/p>\n

In addition, SDS has a network of 33 F&B outlets across Johor where 18 are bakeries, 5 are cafes, and 10 outlets that are a hybrid between bakeries and cafes.\u00a0<\/span><\/p>\n

Store Growth\u00a0<\/b><\/p>\n\n\n\n\n
Financial\u00a0<\/span><\/p>\n

Year Ended on 31 March<\/span><\/td>\n

\n

2016<\/span><\/p>\n<\/td>\n

2017<\/span><\/td>\n2018<\/span><\/td>\n2019<\/span><\/td>\n\n

Current<\/span><\/p>\n<\/td>\n<\/tr>\n

No. of Outlets<\/span><\/td>\n\n

22<\/span><\/p>\n<\/td>\n

25<\/span><\/td>\n27<\/span><\/td>\n30<\/span><\/td>\n\n

33<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Source: Page 171-173 of SDS\u2019s IPO Prospectus\u00a0<\/span><\/p>\n

#2: Financial Results\u00a0<\/b><\/h2>\n

SDS\u2019s financial results are as follows:\u00a0<\/span><\/p>\n

Revenues:\u00a0<\/b><\/p>\n

SDS has achieved consistent increase in revenues from RM 94.0 million in 2016 to RM 187.1 million in 2019, attributed to:<\/span><\/p>\n