Upcoming Dividend • Jun 22
Upcoming dividend of RM0.025 per share Eligible shareholders must have bought the stock before 29 June 2026. Payment date: 20 July 2026. Payout ratio is a comfortable 27% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (2.2%). Major Estimate Revision • May 29
Consensus revenue estimates increase by 26% The consensus outlook for revenues in fiscal year 2026 has improved. 2026 revenue forecast increased from RM1.31b to RM1.65b. EPS estimate increased from RM0.184 to RM0.261 per share. Net income forecast to grow 58% next year vs 26% growth forecast for Packaging industry in Malaysia. Consensus price target of RM1.73 unchanged from last update. Share price was steady at RM1.56 over the past week. Declared Dividend • May 25
Dividend of RM0.025 announced Shareholders will receive a dividend of RM0.025. Ex-date: 29th June 2026 Payment date: 20th July 2026 Dividend yield will be 2.8%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (39% earnings payout ratio) and cash flows (26% cash payout ratio). The dividend has increased by an average of 5.0% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 15% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 23
First quarter 2026 earnings released: EPS: RM0.053 (vs RM0.045 in 1Q 2025) First quarter 2026 results: EPS: RM0.053 (up from RM0.045 in 1Q 2025). Revenue: RM317.3m (flat on 1Q 2025). Net income: RM20.8m (up 16% from 1Q 2025). Profit margin: 6.5% (up from 5.6% in 1Q 2025). Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 16% per year whereas the company’s share price has fallen by 12% per year. Announcement • Apr 29
Thong Guan Industries Berhad, Annual General Meeting, May 22, 2026 Thong Guan Industries Berhad, Annual General Meeting, May 22, 2026, at 11:00 Singapore Standard Time. Location: sapphire hall, purest hotel, no. a-2 jalan indah 1, taman sejati indah, 08000 sungai petani, kedah darul aman, Malaysia Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to RM1.63, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 16x in the Packaging industry in Asia. Total loss to shareholders of 22% over the past three years. Price Target Changed • Apr 23
Price target increased by 34% to RM1.73 Up from RM1.29, the current price target is provided by 1 analyst. New target price is 17% above last closing price of RM1.48. Stock is up 28% over the past year. The company is forecast to post earnings per share of RM0.18 for next year compared to RM0.16 last year. Reported Earnings • Feb 26
Full year 2025 earnings released: EPS: RM0.16 (vs RM0.17 in FY 2024) Full year 2025 results: EPS: RM0.16 (down from RM0.17 in FY 2024). Revenue: RM1.20b (down 6.3% from FY 2024). Net income: RM64.0m (down 4.7% from FY 2024). Profit margin: 5.3% (up from 5.2% in FY 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 19% per year and the company’s share price has also fallen by 19% per year. New Risk • Jan 23
New major risk - Revenue and earnings growth Earnings have declined by 6.9% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 6.9% per year over the past 5 years. Minor Risk Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Upcoming Dividend • Dec 23
Upcoming dividend of RM0.02 per share Eligible shareholders must have bought the stock before 30 December 2025. Payment date: 19 January 2026. Payout ratio is a comfortable 47% and this is well supported by cash flows. Trailing yield: 7.5%. Within top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (3.2%). Buy Or Sell Opportunity • Dec 10
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to RM1.29. The fair value is estimated to be RM1.07, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 3.5% over the last 3 years. Earnings per share has declined by 22%. Revenue is forecast to grow by 0.4% in a year. Earnings are forecast to grow by 34% in the next year. Announcement • Nov 28
Thong Guan Industries Berhad Announces Second Interim Dividend for the Financial Year Ending 31 December 2025, Payable on 19 January 2026 Thong Guan Industries Berhad announced second Interim Dividend of 2.0 Sen Per Ordinary Share for the Financial Year Ending 31 December 2025. Ex-Date is 30 December 2025. Entitlement date is 31 December 2025. Payment Date is 19 January 2026. Reported Earnings • Nov 26
Third quarter 2025 earnings released: EPS: RM0.034 (vs RM0.037 in 3Q 2024) Third quarter 2025 results: EPS: RM0.034 (down from RM0.037 in 3Q 2024). Revenue: RM297.3m (down 9.7% from 3Q 2024). Net income: RM13.4m (down 10% from 3Q 2024). Profit margin: 4.5% (down from 4.6% in 3Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 1.4% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 22% per year whereas the company’s share price has fallen by 23% per year. Board Change • Aug 28
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent Non Executive Director Kean Lee was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 27
Second quarter 2025 earnings released: EPS: RM0.041 (vs RM0.052 in 2Q 2024) Second quarter 2025 results: EPS: RM0.041 (down from RM0.052 in 2Q 2024). Revenue: RM297.0m (down 2.1% from 2Q 2024). Net income: RM16.6m (down 21% from 2Q 2024). Profit margin: 5.6% (down from 6.9% in 2Q 2024). Revenue is forecast to grow 4.1% p.a. on average during the next 2 years, compared to a 9.8% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 21% per year whereas the company’s share price has fallen by 24% per year. New Risk • Aug 26
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM421.6m (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (220% cash payout ratio). Market cap is less than US$100m (RM421.6m market cap, or US$99.9m). Upcoming Dividend • Jun 19
Upcoming dividend of RM0.045 per share Eligible shareholders must have bought the stock before 26 June 2025. Payment date: 18 July 2025. Payout ratio is a comfortable 46% but the company is paying out more than the cash it is generating. Trailing yield: 7.3%. Within top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (3.9%). Announcement • May 29
Thong Guan Industries Berhad Announces First Interim Dividend for the Financial Year Ending 31 December 2025, Payable on 18 July 2025 Thong Guan Industries Berhad announced first interim dividend of 4.5 sen per ordinary share for the financial year ending 31 December 2025. The above Company's securities will be traded and quoted "Ex - Dividend” as from: 26 June 2025. The last date of lodgment: 30 June 2025. Date Payable: 18 July 2025. Price Target Changed • May 28
Price target decreased by 30% to RM1.44 Down from RM2.05, the current price target is provided by 1 analyst. New target price is 31% above last closing price of RM1.10. Stock is down 48% over the past year. The company is forecast to post earnings per share of RM0.17 for next year compared to RM0.17 last year. Announcement • Apr 29
Thong Guan Industries Berhad, Annual General Meeting, May 27, 2025 Thong Guan Industries Berhad, Annual General Meeting, May 27, 2025, at 11:00 Singapore Standard Time. Location: sapphire hall, purest hotel, no. a-2 jalan indah 1, taman sejati indah, 08000 sungai petani, kedah darul aman, Malaysia New Risk • Apr 07
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM425.7m (US$95.1m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Market cap is less than US$100m (RM425.7m market cap, or US$95.1m). Price Target Changed • Mar 03
Price target decreased by 14% to RM2.36 Down from RM2.74, the current price target is an average from 2 analysts. New target price is 77% above last closing price of RM1.33. Stock is down 29% over the past year. The company is forecast to post earnings per share of RM0.21 for next year compared to RM0.18 last year. Reported Earnings • Mar 02
Full year 2024 earnings released: EPS: RM0.18 (vs RM0.18 in FY 2023) Full year 2024 results: EPS: RM0.18 (down from RM0.18 in FY 2023). Revenue: RM1.28b (up 3.3% from FY 2023). Net income: RM70.7m (flat on FY 2023). Profit margin: 5.5% (down from 5.7% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 15% per year whereas the company’s share price has fallen by 16% per year. Announcement • Nov 22
Foremost Equals Sdn Bhd entered into a conditional share sale agreement to acquire Syarikat Thong Guan Trading Sdn. Bhd. from Thong Guan Industries Berhad (KLSE:TGUAN) for MYR 60 million. Foremost Equals Sdn Bhd entered into a conditional share sale agreement to acquire Syarikat Thong Guan Trading Sdn. Bhd. from Thong Guan Industries Berhad (KLSE:TGUAN) for MYR 60 million on November 21, 2024. A cash consideration of MYR 60 million will be paid by Foremost Equals Sdn Bhd. for 3,735 shares.
For the period ending December 31, 2023, Syarikat Thong Guan Trading Sdn. Bhd. reported total revenue of MYR 52.61 million and net income of MYR 5.63 million. The transaction is subject to approval of offer by target shareholders and is expected to close in first quarter of 2025. RHB Investment Bank Berhad acted as financial advisor for Thong Guan Industries Berhad. Reported Earnings • Nov 21
Third quarter 2024 earnings released: EPS: RM0.038 (vs RM0.056 in 3Q 2023) Third quarter 2024 results: EPS: RM0.038 (down from RM0.056 in 3Q 2023). Revenue: RM329.3m (up 3.8% from 3Q 2023). Net income: RM15.0m (down 32% from 3Q 2023). Profit margin: 4.6% (down from 6.9% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 12% per year but the company’s share price has fallen by 19% per year, which means it is performing significantly worse than earnings. Upcoming Dividend • Sep 20
Upcoming dividend of RM0.025 per share Eligible shareholders must have bought the stock before 27 September 2024. Payment date: 18 October 2024. Payout ratio is a comfortable 29% and this is well supported by cash flows. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (4.7%). In line with average of industry peers (2.9%). Reported Earnings • Aug 22
Second quarter 2024 earnings released: EPS: RM0.052 (vs RM0.055 in 2Q 2023) Second quarter 2024 results: EPS: RM0.052 (down from RM0.055 in 2Q 2023). Revenue: RM303.2m (up 4.3% from 2Q 2023). Net income: RM20.9m (down 3.2% from 2Q 2023). Profit margin: 6.9% (down from 7.4% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 8% per year but the company’s share price has fallen by 15% per year, which means it is performing significantly worse than earnings. Reported Earnings • May 01
Full year 2023 earnings: EPS misses analyst expectations Full year 2023 results: EPS: RM0.18 (down from RM0.26 in FY 2022). Revenue: RM1.24b (down 11% from FY 2022). Net income: RM71.3m (down 29% from FY 2022). Profit margin: 5.7% (down from 7.2% in FY 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Apr 28
Thong Guan Industries Berhad, Annual General Meeting, May 23, 2024 Thong Guan Industries Berhad, Annual General Meeting, May 23, 2024, at 11:00 Singapore Standard Time. Location: Sapphire Hall, Purest HotelNo. A-2 Jalan Indah 1, Taman Sejati Indah 08000 Sungai Petani Kedah Darul Aman Sungai Petani Kedah Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 and the Reports of Directors and Auditors thereon; to re-elect Dato' Ang Poon Khim who retires in accordance with Clause 103 of the Company's Constitution; to re-elect Mr. Ang See Ming who retires in accordance with Clause 103 of the Company's Constitution; to re-elect DYTM Tengku Sarafudin Badlishah Ibni Sultan Sallehuddin who retires in accordance with Clause 103 of the Company's Constitution; to approve the Directors' fees and benefits of up to an aggregate amount of RM970,000 for the period commencing from the next day of this AGM through to the next AGM of the Company in 2025; to re-appoint KPMG PLT as Auditors of the Company for the ensuing year and to authorize the Directors to fix their remuneration; and to consider other matters if any. New Risk • Apr 22
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 2.1% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (2.1% increase in shares outstanding). Upcoming Dividend • Mar 20
Upcoming dividend of RM0.03 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 18 April 2024. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Malaysian dividend payers (4.7%). Higher than average of industry peers (2.8%). Declared Dividend • Mar 01
Final dividend of RM0.03 announced Shareholders will receive a dividend of RM0.03. Ex-date: 27th March 2024 Payment date: 18th April 2024 Dividend yield will be 2.3%, which is lower than the industry average of 2.8%. Sustainability & Growth Dividend is well covered by both earnings (11% earnings payout ratio) and cash flows (38% cash payout ratio). The dividend has increased by an average of 5.5% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 55% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 29
Full year 2023 earnings released: EPS: RM0.18 (vs RM0.26 in FY 2022) Full year 2023 results: EPS: RM0.18 (down from RM0.26 in FY 2022). Revenue: RM1.24b (down 11% from FY 2022). Net income: RM71.0m (down 29% from FY 2022). Profit margin: 5.7% (down from 7.2% in FY 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 4% per year. Price Target Changed • Dec 29
Price target decreased by 8.0% to RM2.81 Down from RM3.05, the current price target is an average from 2 analysts. New target price is 49% above last closing price of RM1.88. Stock is down 20% over the past year. The company is forecast to post earnings per share of RM0.22 for next year compared to RM0.26 last year. Price Target Changed • Nov 28
Price target decreased by 8.8% to RM2.86 Down from RM3.14, the current price target is provided by 1 analyst. New target price is 52% above last closing price of RM1.88. Stock is down 25% over the past year. The company is forecast to post earnings per share of RM0.22 for next year compared to RM0.26 last year. Reported Earnings • Nov 24
Third quarter 2023 earnings released: EPS: RM0.056 (vs RM0.07 in 3Q 2022) Third quarter 2023 results: EPS: RM0.056 (down from RM0.07 in 3Q 2022). Revenue: RM317.4m (down 11% from 3Q 2022). Net income: RM21.9m (down 19% from 3Q 2022). Profit margin: 6.9% (down from 7.6% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Reported Earnings • Aug 25
Second quarter 2023 earnings released: EPS: RM0.055 (vs RM0.076 in 2Q 2022) Second quarter 2023 results: EPS: RM0.055 (down from RM0.076 in 2Q 2022). Revenue: RM290.7m (down 23% from 2Q 2022). Net income: RM21.6m (down 27% from 2Q 2022). Profit margin: 7.4% (down from 7.8% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jun 21
Upcoming dividend of RM0.013 per share at 2.7% yield Eligible shareholders must have bought the stock before 28 June 2023. Payment date: 18 July 2023. Payout ratio is a comfortable 25% and this is well supported by cash flows. Trailing yield: 2.7%. Lower than top quartile of Malaysian dividend payers (5.4%). Lower than average of industry peers (3.4%). Announcement • May 23
Thong Guan Industries Berhad Announces First Interim Dividend for the Financial Year Ended 31 December 2023, Payable on July 18, 2023 Thong Guan Industries Berhad announced first interim dividend of 1.25 sen per ordinary share for the financial year ending 31 December 2023. Ex-Date is 28 June 2023. Entitlement date is 30 June 2023. Payment Date is 18 July 2023. Reported Earnings • May 23
First quarter 2023 earnings released: EPS: RM0.05 (vs RM0.064 in 1Q 2022) First quarter 2023 results: EPS: RM0.05 (down from RM0.064 in 1Q 2022). Revenue: RM313.6m (down 5.8% from 1Q 2022). Net income: RM19.6m (down 21% from 1Q 2022). Profit margin: 6.2% (down from 7.4% in 1Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 23
Upcoming dividend of RM0.022 per share at 2.6% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 18 April 2023. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.6%. Lower than top quartile of Malaysian dividend payers (5.2%). Lower than average of industry peers (3.2%). Reported Earnings • Mar 01
Full year 2022 earnings released: EPS: RM0.26 (vs RM0.24 in FY 2021) Full year 2022 results: EPS: RM0.26 (up from RM0.24 in FY 2021). Revenue: RM1.39b (up 14% from FY 2021). Net income: RM100.5m (up 8.2% from FY 2021). Profit margin: 7.2% (down from 7.6% in FY 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Price Target Changed • Dec 23
Price target decreased to RM3.28 Down from RM4.22, the current price target is provided by 1 analyst. New target price is 38% above last closing price of RM2.37. Stock is down 14% over the past year. The company is forecast to post earnings per share of RM0.28 for next year compared to RM0.24 last year. Upcoming Dividend • Dec 22
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 29 December 2022. Payment date: 18 January 2023. Payout ratio is a comfortable 22% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Malaysian dividend payers (5.0%). Lower than average of industry peers (3.3%). Reported Earnings • Dec 03
Third quarter 2022 earnings released: EPS: RM0.07 (vs RM0.058 in 3Q 2021) Third quarter 2022 results: EPS: RM0.07 (up from RM0.058 in 3Q 2021). Revenue: RM356.5m (up 20% from 3Q 2021). Net income: RM27.1m (up 21% from 3Q 2021). Profit margin: 7.6% (up from 7.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 21% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 14% per year whereas the company’s share price has increased by 11% per year. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 4 highly experienced directors. 2 independent directors (4 non-independent directors). Independent Non-Executive Director Muzzammil Bin Tengku Makram was the last independent director to join the board, commencing their role in 2016. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Sep 22
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 29 September 2022. Payment date: 18 October 2022. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.0%. Lower than top quartile of Malaysian dividend payers (5.1%). Lower than average of industry peers (3.1%). Announcement • Aug 26
Thong Guan Industries Berhad Announces Second Interim Dividend for the Financial Year Ending December 31, 2022, Payable on 18 October 2022 Thong Guan Industries Berhad announced second interim dividend of 1.25 sen per ordinary share for the financial year ending December 31, 2022. Ex-Date is 29 September 2022. Entitlement time is 30 September 2022. Payment Date is 18 October 2022. Reported Earnings • Aug 26
Second quarter 2022 earnings released: EPS: RM0.077 (vs RM0.067 in 2Q 2021) Second quarter 2022 results: EPS: RM0.077 (up from RM0.067 in 2Q 2021). Revenue: RM379.3m (up 23% from 2Q 2021). Net income: RM29.5m (up 15% from 2Q 2021). Profit margin: 7.8% (down from 8.3% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 22%, compared to a 11% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Jun 22
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 29 June 2022. Payment date: 18 July 2022. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.4%. Lower than top quartile of Malaysian dividend payers (4.9%). Lower than average of industry peers (3.0%). Announcement • May 28
Thong Guan Industries Berhad Announces First Interim Dividend for the Financial Year Ending December 31, 2022, Payable on July 18, 2022 Thong Guan Industries Berhad announced first interim dividend of 1.25 sen per ordinary share for the financial year ending December 31, 2022. Ex-Date 29 June 2022. Entitlement date 30 June 2022. Payment Date 18 July 2022. Reported Earnings • May 03
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: RM0.24 (up from RM0.20 in FY 2020). Revenue: RM1.21b (up 27% from FY 2020). Net income: RM92.9m (up 23% from FY 2020). Profit margin: 7.6% (down from 7.8% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.7%. Earnings per share (EPS) missed analyst estimates by 3.8%. Over the next year, revenue is forecast to grow 20%, compared to a 12% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 22% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Apr 27
Price target decreased to RM4.22 Down from RM4.69, the current price target is an average from 2 analysts. New target price is 72% above last closing price of RM2.46. Stock is down 6.1% over the past year. The company is forecast to post earnings per share of RM0.29 for next year compared to RM0.24 last year. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 6 highly experienced directors. Independent Non-Executive Director Muzzammil Bin Tengku Makram was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of RM0.022 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 18 April 2022. Payout ratio is a comfortable 23% but the company is not cash flow positive. Trailing yield: 2.3%. Lower than top quartile of Malaysian dividend payers (4.7%). Lower than average of industry peers (2.8%). Price Target Changed • Mar 08
Price target decreased to RM4.22 Down from RM4.56, the current price target is an average from 2 analysts. New target price is 91% above last closing price of RM2.21. Stock is up 13% over the past year. The company is forecast to post earnings per share of RM0.29 for next year compared to RM0.24 last year. Announcement • Mar 03
Thong Guan Industries Berhad Proposes an Interim Dividend for the Current Quarter Ended 31 December 2021 to Be Paid on 18 April 2022 The Board of Directors of Thong Guan Industries Berhad has proposed an interim dividend of 2.25 sen per ordinary share for the current quarter ended 31 December 2021 to be paid on 18 April 2022 to the shareholders registered at the close of business on 31 March 2022. Reported Earnings • Mar 02
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: RM0.24 (up from RM0.20 in FY 2020). Revenue: RM1.21b (up 27% from FY 2020). Net income: RM93.0m (up 24% from FY 2020). Profit margin: 7.7% (down from 7.8% in FY 2020). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 7.7%. Over the next year, revenue is forecast to grow 20%, compared to a 13% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Dec 23
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 30 December 2021. Payment date: 19 January 2022. Payout ratio is a comfortable 27% but the company is not cash flow positive. Trailing yield: 2.2%. Lower than top quartile of Malaysian dividend payers (4.5%). Lower than average of industry peers (2.6%). Reported Earnings • Nov 19
Third quarter 2021 earnings released: EPS RM0.059 (vs RM0.052 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: RM296.8m (up 21% from 3Q 2020). Net income: RM22.4m (up 14% from 3Q 2020). Profit margin: 7.5% (down from 8.0% in 3Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Upcoming Dividend • Oct 21
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 28 October 2021. Payment date: 18 November 2021. Trailing yield: 2.2%. Lower than top quartile of Malaysian dividend payers (4.1%). In line with average of industry peers (2.4%). Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS RM0.067 (vs RM0.055 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: RM307.3m (up 35% from 2Q 2020). Net income: RM25.6m (up 25% from 2Q 2020). Profit margin: 8.3% (down from 9.0% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Price Target Changed • Aug 27
Price target increased to RM3.74 Up from RM3.22, the current price target is an average from 2 analysts. New target price is 38% above last closing price of RM2.71. Stock is up 0.6% over the past year. Upcoming Dividend • Jul 22
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 29 July 2021. Payment date: 18 August 2021. Trailing yield: 2.3%. Lower than top quartile of Malaysian dividend payers (4.1%). Higher than average of industry peers (1.9%). Upcoming Dividend • Jun 22
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 29 June 2021. Payment date: 19 July 2021. Trailing yield: 2.2%. Lower than top quartile of Malaysian dividend payers (3.9%). Higher than average of industry peers (1.7%). Reported Earnings • May 29
First quarter 2021 earnings released: EPS RM0.057 (vs RM0.047 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: RM282.1m (up 16% from 1Q 2020). Net income: RM21.8m (up 25% from 1Q 2020). Profit margin: 7.7% (up from 7.2% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 29
Thong Guan Industries Berhad Announces First Interim Dividend for the Financial Year Ending December 31, 2021, Payable on 18 August 2021 Thong Guan Industries Berhad announced first interim dividend of 1 sen for the financial year ending December 31, 2021. Ex-Date is 29 July 2021. Entitlement date is 30 July 2021. Payment date is 18 August 2021. Reported Earnings • May 05
Full year 2020 earnings released: EPS RM0.20 (vs RM0.18 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: RM960.6m (up 2.3% from FY 2019). Net income: RM75.3m (up 22% from FY 2019). Profit margin: 7.8% (up from 6.6% in FY 2019). Over the last 3 years on average, earnings per share has increased by 16% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Analyst Estimate Surprise Post Earnings • Feb 28
Revenue and earnings miss expectations Revenue missed analyst estimates by 1.2%. Earnings per share (EPS) also missed analyst estimates by 7.7%. Over the next year, revenue is forecast to grow 11%, compared to a 21% growth forecast for the Packaging industry in Malaysia. Reported Earnings • Feb 26
Full year 2020 earnings released: EPS RM0.20 (vs RM0.19 in FY 2019) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2020 results: Revenue: RM960.6m (up 2.3% from FY 2019). Net income: RM75.5m (up 22% from FY 2019). Profit margin: 7.9% (up from 6.6% in FY 2019). Over the last 3 years on average, earnings per share has increased by 16% per year whereas the company’s share price has increased by 12% per year. Is New 90 Day High Low • Feb 25
New 90-day low: RM2.27 The company is down 16% from its price of RM2.69 on 27 November 2020. The Malaysian market is up 1.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Packaging industry, which is up 11% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM1.04 per share.