Declared Dividend • Jun 06
Fourth quarter dividend of RM0.0035 announced Shareholders will receive a dividend of RM0.0035. Ex-date: 18th June 2026 Payment date: 13th July 2026 Dividend yield will be 3.9%, which is about the same as the industry average. Sustainability & Growth Dividend is not covered by earnings (102% earnings payout ratio). However, it is covered by cash flows (81% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 14% to bring the payout ratio under control. EPS is expected to grow by 88% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • May 29
Full year 2026 earnings released: EPS: RM0.039 (vs RM0.072 in FY 2025) Full year 2026 results: EPS: RM0.039 (down from RM0.072 in FY 2025). Revenue: RM338.2m (down 18% from FY 2025). Net income: RM16.7m (down 48% from FY 2025). Profit margin: 4.9% (down from 7.7% in FY 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. New Risk • May 29
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.9% Last year net profit margin: 7.7% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 102% Cash payout ratio: 101% Minor Risk Profit margins are more than 30% lower than last year (4.9% net profit margin). Price Target Changed • Mar 13
Price target decreased by 7.6% to RM1.11 Down from RM1.21, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of RM1.13. Stock is down 19% over the past year. The company is forecast to post earnings per share of RM0.059 for next year compared to RM0.072 last year. Declared Dividend • Mar 01
Third quarter dividend reduced to RM0.012 Dividend of RM0.012 is 40% lower than last year. Ex-date: 12th March 2026 Payment date: 3rd April 2026 Dividend yield will be 4.4%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is not covered by earnings (102% earnings payout ratio) nor is it covered by cash flows (dividend approximately 54x free cash flows). The dividend has increased by an average of 3.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 14% to bring the payout ratio under control. EPS is expected to grow by 52% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 26
Third quarter 2026 earnings released: EPS: RM0.007 (vs RM0.023 in 3Q 2025) Third quarter 2026 results: EPS: RM0.007 (down from RM0.023 in 3Q 2025). Revenue: RM85.6m (down 27% from 3Q 2025). Net income: RM3.21m (down 68% from 3Q 2025). Profit margin: 3.7% (down from 8.5% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Dec 15
Upcoming dividend of RM0.012 per share Eligible shareholders must have bought the stock before 22 December 2025. Payment date: 09 January 2026. Payout ratio is on the higher end at 90% but the company is not cash flow positive. Trailing yield: 5.4%. Lower than top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (3.9%). Reported Earnings • Nov 27
Second quarter 2026 earnings released: EPS: RM0.013 (vs RM0.019 in 2Q 2025) Second quarter 2026 results: EPS: RM0.013 (down from RM0.019 in 2Q 2025). Revenue: RM85.5m (down 17% from 2Q 2025). Net income: RM5.06m (down 40% from 2Q 2025). Profit margin: 5.9% (down from 8.2% in 2Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 27% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings. Declared Dividend • Aug 30
First quarter dividend of RM0.015 announced Shareholders will receive a dividend of RM0.015. Ex-date: 17th September 2025 Payment date: 6th October 2025 Dividend yield will be 5.4%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is covered by earnings (89.9% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share is expected to grow by 43% over the next 3 years, which should maintain adequate earnings cover for the dividend. Reported Earnings • Aug 29
First quarter 2026 earnings released: EPS: RM0.016 (vs RM0.016 in 1Q 2025) First quarter 2026 results: EPS: RM0.016 (in line with 1Q 2025). Revenue: RM94.1m (down 12% from 1Q 2025). Net income: RM7.12m (down 2.4% from 1Q 2025). Profit margin: 7.6% (up from 6.8% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 5.4% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 14% per year, which means it has not declined as severely as earnings. Reported Earnings • Jul 27
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: RM0.072 (down from RM0.091 in FY 2024). Revenue: RM413.0m (flat on FY 2024). Net income: RM32.0m (down 23% from FY 2024). Profit margin: 7.7% (down from 10.0% in FY 2024). Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) also missed analyst estimates by 8.1%. Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 5.3% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 10% per year. Announcement • Jul 24
Power Root Berhad, Annual General Meeting, Aug 27, 2025 Power Root Berhad, Annual General Meeting, Aug 27, 2025, at 15:00 Singapore Standard Time. Location: no. 1, jalan sri plentong, taman perindustrian sri plentong, 81750 masai, johor darul takzim, Malaysia New Risk • Jul 23
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM314.1m (US$74.3m) 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 (RM314.1m market cap, or US$74.3m). Major Estimate Revision • Jun 05
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from RM455.2m to RM432.4m. EPS estimate also fell from RM0.089 per share to RM0.08 per share. Net income forecast to grow 8.5% next year vs 12% growth forecast for Beverage industry in Malaysia. Consensus price target down from RM1.30 to RM1.25. Share price fell 2.8% to RM1.37 over the past week. Declared Dividend • May 31
Fourth quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 13th June 2025 Payment date: 4th July 2025 Dividend yield will be 4.6%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (75% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 48% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • May 29
Power Root Berhad Announces Fourth Interim Single Tier Dividend for the Financial Year Ended 31 March 2025, Payable on 04 July 2025 Power Root Berhad announced fourth interim single tier dividend of 1.30 sen per ordinary share for the Financial Year ended 31 March 2025. Ex-Date is 13 June 2025; Entitlement date is 16 June 2025; Payment Date is 04 July 2025. Reported Earnings • May 29
Full year 2025 earnings released: EPS: RM0.072 (vs RM0.091 in FY 2024) Full year 2025 results: EPS: RM0.072 (down from RM0.091 in FY 2024). Revenue: RM421.6m (flat on FY 2024). Net income: RM32.0m (down 23% from FY 2024). Profit margin: 7.6% (down from 9.8% in FY 2024). Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 12% per year whereas the company’s share price has fallen by 7% per year. Declared Dividend • Feb 28
Third quarter dividend of RM0.02 announced Shareholders will receive a dividend of RM0.02. Ex-date: 12th March 2025 Payment date: 3rd April 2025 Dividend yield will be 4.6%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is covered by both earnings (84% earnings payout ratio) and cash flows (51% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 26
Third quarter 2025 earnings released: EPS: RM0.023 (vs RM0.015 in 3Q 2024) Third quarter 2025 results: EPS: RM0.023 (up from RM0.015 in 3Q 2024). Revenue: RM117.6m (up 24% from 3Q 2024). Net income: RM10.0m (up 43% from 3Q 2024). Profit margin: 8.5% (up from 7.4% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has increased by 3% per year. Price Target Changed • Dec 13
Price target decreased by 11% to RM1.38 Down from RM1.55, the current price target is an average from 4 analysts. New target price is 7.4% below last closing price of RM1.49. Stock is down 18% over the past year. The company is forecast to post earnings per share of RM0.086 for next year compared to RM0.091 last year. Declared Dividend • Nov 25
Second quarter dividend of RM0.02 announced Shareholders will receive a dividend of RM0.02. Ex-date: 6th December 2024 Payment date: 30th December 2024 Dividend yield will be 4.0%, which is about the same as the industry average. Sustainability & Growth Dividend is not adequately covered by earnings (95% earnings payout ratio). However, it is covered by cash flows (65% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. The company's earnings per share (EPS) would need to grow by 5.7% to bring the payout ratio under control. EPS is expected to grow by 70% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Nov 22
Second quarter 2025 earnings released: EPS: RM0.019 (vs RM0.022 in 2Q 2024) Second quarter 2025 results: EPS: RM0.019 (down from RM0.022 in 2Q 2024). Revenue: RM103.6m (up 3.5% from 2Q 2024). Net income: RM8.48m (down 18% from 2Q 2024). Profit margin: 8.2% (down from 10% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Beverage 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 only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Sep 12
Price target decreased by 11% to RM1.55 Down from RM1.74, the current price target is an average from 4 analysts. New target price is 12% above last closing price of RM1.38. Stock is down 31% over the past year. The company is forecast to post earnings per share of RM0.099 for next year compared to RM0.091 last year. Announcement • Sep 05
Power Root Berhad Announces Appointment of Dato Tea Choo Keng as Independent and Non Executive Member of Audit Committee Power Root Berhad announced appointment of Dato Tea Choo Keng as Independent and Non Executive Member of Audit Committee. Date of change is 05 September 2024. Age is 56. Composition of Audit Committee (Name and Directorate of members after change): 1. Ms. Tan Lay Beng (Chairman) - Independent Non-Executive Director. 2. Dato' Afifuddin bin Abdul Kadir (Member) - Independent Non-Executive Director. 3. Dato' Tea Choo Keng (Member) - Independent Non-Executive Director. Declared Dividend • Aug 31
First quarter dividend of RM0.012 announced Shareholders will receive a dividend of RM0.012. Ex-date: 12th September 2024 Payment date: 4th October 2024 Dividend yield will be 3.9%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (89.8% earnings payout ratio) and cash flows (77% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. Earnings per share is expected to grow by 121% over the next 3 years, which should maintain adequate earnings cover for the dividend. Reported Earnings • Aug 29
First quarter 2025 earnings released First quarter 2025 results: Revenue: RM106.9m (down 6.8% from 1Q 2024). Net income: RM7.30m (down 52% from 1Q 2024). Profit margin: 6.8% (down from 13% in 1Q 2024). Revenue is forecast to grow 8.2% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Aug 23
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 14% to RM1.50. The fair value is estimated to be RM1.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 7.5% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Buy Or Sell Opportunity • Aug 05
Now 23% undervalued after recent price drop Over the last 90 days, the stock has fallen 20% to RM1.45. The fair value is estimated to be RM1.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 31%. For the next 3 years, revenue is forecast to grow by 7.5% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Reported Earnings • Jul 29
Full year 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2024 results: EPS: RM0.091 (down from RM0.14 in FY 2023). Revenue: RM425.3m (down 7.6% from FY 2023). Net income: RM41.6m (down 29% from FY 2023). Profit margin: 9.8% (down from 13% in FY 2023). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 5.0%. Revenue is forecast to grow 7.5% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jul 26
Power Root Berhad, Annual General Meeting, Aug 27, 2024 Power Root Berhad, Annual General Meeting, Aug 27, 2024, at 15:00 Singapore Standard Time. Location: no. 1, jalan sri plentong, taman perindustrian sri plentong, 81750 masai, johor darul takzim, Malaysia Declared Dividend • May 31
Third quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 13th June 2024 Payment date: 5th July 2024 Dividend yield will be 4.2%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is covered by earnings (66% earnings payout ratio) but not adequately covered by cash flows (96% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 28% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • May 03
Now 23% overvalued after recent price rise Over the last 90 days, the stock has risen 5.3% to RM1.79. The fair value is estimated to be RM1.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 15% over the last 3 years. Earnings per share has grown by 30%. Revenue is forecast to grow by 14% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Board Change • May 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 5 highly experienced directors. Independent Non-Executive Director Lay Tan was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 11
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 18 March 2024. Payment date: 09 April 2024. Payout ratio is a comfortable 66% but the company is paying out more than the cash it is generating. Trailing yield: 4.5%. Lower than top quartile of Malaysian dividend payers (4.8%). Higher than average of industry peers (3.8%). Declared Dividend • Mar 06
Third quarter dividend reduced to RM0.013 Dividend of RM0.013 is 42% lower than last year. Ex-date: 18th March 2024 Payment date: 9th April 2024 Dividend yield will be 5.6%, which is higher than the industry average of 3.8%. Sustainability & Growth Dividend is covered by earnings (66% earnings payout ratio) but not adequately covered by cash flows (96% cash payout ratio). The dividend has increased over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 19% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Major Estimate Revision • Mar 05
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM423.3m to RM409.3m. EPS estimate also fell from RM0.109 per share to RM0.094 per share. Net income forecast to shrink 0.5% next year vs 5.0% growth forecast for Beverage industry in Malaysia . Consensus price target down from RM1.99 to RM1.70. Share price was steady at RM1.67 over the past week. Reported Earnings • Feb 28
Third quarter 2024 earnings released: EPS: RM0.015 (vs RM0.027 in 3Q 2023) Third quarter 2024 results: EPS: RM0.015 (down from RM0.027 in 3Q 2023). Revenue: RM94.7m (down 12% from 3Q 2023). Net income: RM7.00m (down 38% from 3Q 2023). Profit margin: 7.4% (down from 11% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 31% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • Jan 30
Now 20% undervalued after recent price drop Over the last 90 days, the stock has fallen 13% to RM1.71. The fair value is estimated to be RM2.14, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years. Earnings per share has grown by 25%. Revenue is forecast to grow by 9.7% in 2 years. Earnings are forecast to grow by 12% in the next 2 years. Price Target Changed • Dec 13
Price target decreased by 7.0% to RM1.99 Down from RM2.14, the current price target is an average from 4 analysts. New target price is 12% above last closing price of RM1.78. Stock is down 19% over the past year. The company is forecast to post earnings per share of RM0.11 for next year compared to RM0.14 last year. Upcoming Dividend • Dec 06
Upcoming dividend of RM0.02 per share at 5.7% yield Eligible shareholders must have bought the stock before 13 December 2023. Payment date: 05 January 2024. Payout ratio is a comfortable 65% but the company is paying out more than the cash it is generating. Trailing yield: 5.7%. Within top quartile of Malaysian dividend payers (5.1%). Higher than average of industry peers (4.1%). Major Estimate Revision • Nov 29
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM477.0m to RM441.4m. EPS estimate also fell from RM0.136 per share to RM0.118 per share. Net income forecast to grow 6.9% next year vs 5.4% growth forecast for Beverage industry in Malaysia. Consensus price target down from RM2.49 to RM2.16. Share price fell 3.0% to RM1.96 over the past week. Announcement • Nov 29
Power Root Berhad Announces Second Interim Single Tier Dividend for the Year Ending March 31, 2024, Payable on January 05, 2024 Power Root Berhad announced that the second interim single tier dividend of 2.0 sen per ordinary share for the period year ending March 31, 2024. Ex-date is December 13, 2023. Entitlement date is December 14, 2023. Payment date is January 05, 2024. Reported Earnings • Nov 23
Second quarter 2024 earnings released: EPS: RM0.022 (vs RM0.038 in 2Q 2023) Second quarter 2024 results: EPS: RM0.022 (down from RM0.038 in 2Q 2023). Revenue: RM100.1m (down 24% from 2Q 2023). Net income: RM10.3m (down 34% from 2Q 2023). Profit margin: 10% (down from 12% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.5% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 02
Price target decreased by 8.0% to RM2.49 Down from RM2.71, the current price target is an average from 4 analysts. New target price is 25% above last closing price of RM1.99. Stock is up 7.0% over the past year. The company is forecast to post earnings per share of RM0.14 for next year compared to RM0.14 last year. Upcoming Dividend • Sep 07
Upcoming dividend of RM0.025 per share at 5.5% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 12 October 2023. Payout ratio is a comfortable 58% but the company is paying out more than the cash it is generating. Trailing yield: 5.5%. Within top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (4.0%). Buying Opportunity • Aug 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 5.6%. The fair value is estimated to be RM2.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Earnings per share has grown by 2.9%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 6.1% per annum over the same time period. Reported Earnings • Jul 30
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: RM0.14 (up from RM0.062 in FY 2022). Revenue: RM459.7m (up 32% from FY 2022). Net income: RM58.8m (up 124% from FY 2022). Profit margin: 13% (up from 7.5% in FY 2022). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Revenue is forecast to grow 4.4% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Jul 29
Power Root Berhad, Annual General Meeting, Aug 28, 2023 Power Root Berhad, Annual General Meeting, Aug 28, 2023, at 15:00 Singapore Standard Time. Location: No. 1, Jalan Sri Plentong, Taman Perindustrian Sri Plentong, 81750 Masai, Johor Masai Johor Malaysia Agenda: To consider receive the Audited Financial Statement for the financial year ended 31 March 2023 together with the Directors' and Auditors' reports thereon; to consider sanction payment of Directors' fees for the financial year ending 31 March 2024, to be payable on quarterly basis in arrears; to consider approve the benefit payable to the Directors an aggregate amount of not more than RM600,000 for the financial year ending 31 March 2024; to consider re-elect Dato' How Say Swee, who retires pursuant to Clause 100 of the Company's Constitution and being eligible, offers himself for re-election; to consider re-elect Mr. Wong Tak Keong, who retires pursuant to Clause 107 of the Company's Constitution and being eligible, offers himself for re-election; and to consider other matters. Buying Opportunity • Jul 01
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 2.4%. The fair value is estimated to be RM2.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Earnings per share has grown by 3.1%. For the next 3 years, revenue is forecast to grow by 4.4% per annum. Earnings is also forecast to grow by 5.8% per annum over the same time period. New Risk • Jun 15
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.7% 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: Major Risk High level of non-cash earnings (22% accrual ratio). Minor Risks Dividend is not well covered by cash flows (356% cash payout ratio). Shareholders have been diluted in the past year (7.7% increase in shares outstanding). Upcoming Dividend • Jun 12
Upcoming dividend of RM0.035 per share at 5.5% yield Eligible shareholders must have bought the stock before 19 June 2023. Payment date: 03 July 2023. Payout ratio is a comfortable 56% but the company is paying out more than the cash it is generating. Trailing yield: 5.5%. Within top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (3.9%). Reported Earnings • May 26
Full year 2023 earnings released: EPS: RM0.14 (vs RM0.062 in FY 2022) Full year 2023 results: EPS: RM0.14 (up from RM0.062 in FY 2022). Revenue: RM460.2m (up 32% from FY 2022). Net income: RM59.4m (up 126% from FY 2022). Profit margin: 13% (up from 7.5% in FY 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.6% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • May 19
Power Root Berhad Appoints Wong Tak Keong as Executive Director Power Root Berhad appointed WONG TAK KEONG as Executive Director. Age is 52. Date of change is 18 May 2023. Degree of Bachelor Degree in Accounting and Finance from University of Western Australia. In 1993, Mr. Wong started his career as an audit assistant with Pricewaterhouse Coopers and KPMG. In 1995, Mr. Wong joined Horwath Malaysia (now known as Crowe Malaysia PLT), a member of Horwath International (now known as Crowe Global), an international accounting firm as a Manager where he was then admitted as a partner in 1999. Mr. Wong is a member of both the Malaysian Institute of Accountants and the Certified Practising Accountant (CPA) Australia. He has 13 years of experience in public practice. Mr. Wong resigned as partner from Horwath in December 2006 and started his own consultancy business in 2007. He joined Power Root as the International Business Manager in 2008 and was promoted as Director of International Business in 2017 and Managing Director in 2018. He assumed his current position as Chief Executive Officer in Power Root Berhad in 2020. Upcoming Dividend • Mar 06
Upcoming dividend of RM0.022 per share at 5.0% yield Eligible shareholders must have bought the stock before 13 March 2023. Payment date: 07 April 2023. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 5.0%. Lower than top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (3.6%). Reported Earnings • Feb 23
Third quarter 2023 earnings released: EPS: RM0.027 (vs RM0.014 in 3Q 2022) Third quarter 2023 results: EPS: RM0.027 (up from RM0.014 in 3Q 2022). Revenue: RM107.7m (up 12% from 3Q 2022). Net income: RM11.3m (up 87% from 3Q 2022). Profit margin: 11% (up from 6.3% in 3Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.0% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 8% per year whereas the company’s share price has fallen by 3% per year. Buying Opportunity • Feb 03
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 10%. The fair value is estimated to be RM2.46, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 3.5% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Announcement • Jan 17
Power Root Berhad Announces Resignation of Wong Tak Keong as Chief Executive Officer Power Root Berhad announced resignation of Wong Tak Keong as Chief Executive Officer. Date of change is 16 January 2023. Reason To focus on his role as Chief Executive Officer ("CEO") in running the businesses of the Power Root Group. Buying Opportunity • Jan 10
Now 20% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be RM2.58, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 3.5% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Announcement • Jan 04
Power Root Berhad Appoints Evelyn Neo Meng Pey as Principal Officer Power Root Berhad announced appointment of Mrs Evelyn Neo Meng Pey as Principal Officer. Date of change is January 3, 2023. Age is 42. Professional Qualification as Fellow of The Association of Chartered Certified Accountants (ACCA),United Kingdom and Professional Qualification as Member of Malaysian Institute of Accountants (MIA). Ms. Evelyn is a Chartered Accountant with ACCA and MIA qualifications. Prior to joining the Power Root Group in January 2020, she has over 18 years of work experience in audit, accounting, financial management and reporting, tax and treasury in various companies. She is assuming the role as Group Financial Controller in the Power Root Group. Buying Opportunity • Dec 07
Now 21% undervalued Over the last 90 days, the stock is up 6.7%. The fair value is estimated to be RM2.81, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 17%. Revenue is forecast to grow by 3.5% in 2 years. Earnings is forecast to grow by 18% in the next 2 years. Upcoming Dividend • Dec 01
Upcoming dividend of RM0.03 per share Eligible shareholders must have bought the stock before 08 December 2022. Payment date: 05 January 2023. Payout ratio is a comfortable 61% but the company is paying out more than the cash it is generating. Trailing yield: 4.3%. Lower than top quartile of Malaysian dividend payers (5.1%). Higher than average of industry peers (3.5%). Major Estimate Revision • Nov 29
Consensus EPS estimates increase by 19% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from RM403.7m to RM423.2m. EPS estimate increased from RM0.10 to RM0.12 per share. Net income forecast to grow 11% next year vs 7.9% growth forecast for Beverage industry in Malaysia. Consensus price target up from RM2.31 to RM2.38. Share price was steady at RM2.29 over the past week. Reported Earnings • Nov 23
Second quarter 2023 earnings released: EPS: RM0.037 (vs RM0.013 in 2Q 2022) Second quarter 2023 results: EPS: RM0.037 (up from RM0.013 in 2Q 2022). Revenue: RM131.0m (up 61% from 2Q 2022). Net income: RM15.6m (up 179% from 2Q 2022). Profit margin: 12% (up from 6.9% in 2Q 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 2.4% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Beverage industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Price Target Changed • Nov 16
Price target increased to RM2.31 Up from RM2.10, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of RM2.23. Stock is up 66% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.062 last year. Valuation Update With 7 Day Price Move • Sep 07
Investor sentiment improved over the past week After last week's 15% share price gain to RM2.12, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 19x in the Beverage industry in Malaysia. Total returns to shareholders of 16% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM3.04 per share. Major Estimate Revision • Sep 05
Consensus EPS estimates increase by 26% The consensus outlook for earnings per share (EPS) in 2023 has improved. 2023 revenue forecast increased from RM377.2m to RM394.8m. EPS estimate increased from RM0.08 to RM0.11 per share. Net income forecast to grow 23% next year vs 15% growth forecast for Beverage industry in Malaysia. Consensus price target up from RM1.70 to RM2.10. Share price rose 6.9% to RM2.01 over the past week. Reported Earnings • Aug 03
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: RM0.062 (down from RM0.068 in FY 2021). Revenue: RM349.6m (up 12% from FY 2021). Net income: RM26.2m (down 7.8% from FY 2021). Profit margin: 7.5% (down from 9.1% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) also surpassed analyst estimates by 40%. Over the next year, revenue is forecast to grow 7.9%, compared to a 12% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Upcoming Dividend • Jun 09
Upcoming dividend of RM0.025 per share Eligible shareholders must have bought the stock before 16 June 2022. Payment date: 13 July 2022. Payout ratio and cash payout ratio are on the higher end at 79% and 95% respectively. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (4.6%). Lower than average of industry peers (3.4%). Valuation Update With 7 Day Price Move • Jun 07
Investor sentiment improved over the past week After last week's 16% share price gain to RM1.77, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 21x in the Beverage industry in Malaysia. Total returns to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.48 per share. 