SDS 7th AGM EXTRACTS

The AGM Q&A mostly answered by their CFO. The answer is quite conservative not revealing any future prospects nor given any growth figures.

After reading their AR, CFO is the son of major shareholder Mr Tan Kim Seng, i think probably he will be promoted to ED or MD in the future.

Can feel the confidence level they have in order to compete with G and M.

The expansion of outlet is an edge towards achieving better top and bottom line on top of the bakery products.

Share price, I think is not fully priced in yet although it is not as cheap as year before. But for them to maintain yearly ROE of 20+ is a superb job considering a lower gearing ratio plus low dividend payout now due to capex for expansion. Cash level increased from about 10m in Jun20 to about 40m in Jun24, long and short term debts decreased from 30m down to about 4m. A really rare good company with stable growth prospects we can found.

It would be safer investing in SDS provided no major drama on food issues or quality issues.

TRADE AT YOUR RISK.