New Risk • Sep 29
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Bangladeshi stocks, typically moving 8.9% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported March 2023 fiscal period end). Share price has been highly volatile over the past 3 months (8.9% average weekly change). Revenue has declined by 10% over the past year. Minor Risks Revenue is less than US$5m (৳500m revenue, or US$4.2m). Market cap is less than US$100m (৳1.69b market cap, or US$14.1m). Valuation Update With 7 Day Price Move • Sep 26
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ৳16.90, the stock trades at a trailing P/E ratio of 10.6x. Average trailing P/E is 30x in the Chemicals industry in Bangladesh. Total loss to shareholders of 68% over the past three years. New Risk • Aug 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bangladeshi stocks, typically moving 7.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported March 2023 fiscal period end). Revenue has declined by 10% over the past year. Minor Risks Share price has been volatile over the past 3 months (7.0% average weekly change). Revenue is less than US$5m (৳500m revenue, or US$4.2m). Market cap is less than US$100m (৳1.98b market cap, or US$16.8m). Valuation Update With 7 Day Price Move • Jul 07
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ৳20.50, the stock trades at a trailing P/E ratio of 12.8x. Average trailing P/E is 28x in the Chemicals industry in Bangladesh. Total loss to shareholders of 53% over the past three years. New Risk • Jun 01
New major risk - Financial data availability The company's latest financial reports are more than a year old. Last reported fiscal period ended March 2023. This is considered a major risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. In the worst case scenario, it may be facing other major going concern issues jeopardizing its viability as a listed company. Currently, the following risks have been identified for the company: Major Risks Latest financial reports are more than 1 year old (reported March 2023 fiscal period end). Revenue has declined by 10% over the past year. Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Revenue is less than US$5m (৳500m revenue, or US$4.3m). Market cap is less than US$100m (৳2.11b market cap, or US$18.0m). New Risk • Mar 31
New major risk - Revenue and earnings growth Revenue has declined by 10% over the past year. 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 revenues are declining, then it is difficult for the company to prevent its earnings from declining as well. A trend of falling revenue 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 Revenue has declined by 10% over the past year. Minor Risks Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Share price has been volatile over the past 3 months (7.7% average weekly change). Revenue is less than US$5m (৳500m revenue, or US$4.5m). Market cap is less than US$100m (৳2.69b market cap, or US$24.4m). New Risk • Mar 18
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Bangladeshi stocks, typically moving 7.5% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Share price has been volatile over the past 3 months (7.5% average weekly change). Revenue is less than US$5m (৳500m revenue, or US$4.6m). Market cap is less than US$100m (৳3.18b market cap, or US$29.0m). Valuation Update With 7 Day Price Move • Jan 23
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ৳30.50, the stock trades at a trailing P/E ratio of 19.1x. Average trailing P/E is 31x in the Chemicals industry in Bangladesh. Total loss to shareholders of 23% over the past three years. Upcoming Dividend • Jan 21
Upcoming dividend of ৳0.10 per share at 2.7% yield Eligible shareholders must have bought the stock before 28 January 2024. Payment date: 19 March 2024. Trailing yield: 2.7%. Lower than top quartile of Bangladeshi dividend payers (3.3%). Higher than average of industry peers (2.1%). Annuncio • Dec 29
Associated Oxygen Limited to Report Q4, 2023 Results on Jan 04, 2024 Associated Oxygen Limited announced that they will report Q4, 2023 results on Jan 04, 2024 New Risk • Dec 17
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Minor Risks Latest financial reports are more than 6 months old (reported March 2023 fiscal period end). Paying a dividend despite having no free cash flows. Revenue is less than US$5m (৳500m revenue, or US$4.6m). Market cap is less than US$100m (৳4.01b market cap, or US$36.5m). Board Change • Oct 31
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. 6 experienced directors. No highly experienced directors. 2 independent directors (4 non-independent directors). Independent Director Nasima Chowdhury was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Reported Earnings • Jun 02
Third quarter 2023 earnings released: EPS: ৳0.52 (vs ৳0.46 in 3Q 2022) Third quarter 2023 results: EPS: ৳0.52 (up from ৳0.46 in 3Q 2022). Revenue: ৳150.1m (up 8.5% from 3Q 2022). Net income: ৳56.8m (up 12% from 3Q 2022). Profit margin: 38% (up from 37% in 3Q 2022). The increase in margin was driven by higher revenue. Annuncio • May 23
Associated Oxygen Limited to Report Q3, 2023 Results on May 25, 2023 Associated Oxygen Limited announced that they will report Q3, 2023 results on May 25, 2023 Reported Earnings • Dec 15
First quarter 2023 earnings released: EPS: ৳0.41 (vs ৳0.46 in 1Q 2022) First quarter 2023 results: EPS: ৳0.41 (down from ৳0.46 in 1Q 2022). Revenue: ৳120.5m (down 14% from 1Q 2022). Net income: ৳45.3m (down 10.0% from 1Q 2022). Profit margin: 38% (up from 36% in 1Q 2022). The increase in margin was driven by lower expenses. Upcoming Dividend • Nov 24
Upcoming dividend of ৳1.00 per share Eligible shareholders must have bought the stock before 01 December 2022. Payment date: 29 January 2023. Payout ratio is a comfortable 25% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Bangladeshi dividend payers (3.8%). Higher than average of industry peers (2.4%). 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. 5 experienced directors. No highly experienced directors. 1 independent director (4 non-independent directors). Independent Director Nasima Chowdhury was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Annuncio • Nov 09
Associated Oxygen Limited Recommends Cash Dividend Payment Associated Oxygen Limited has recommended 10% Cash dividend for general shareholders only excluding sponsors and directors for the year ended June 30, 2022. Sponsors and directors hold 3,36,55,905 shares out of total 10,97,82,000 shares and cash dividend payable to general shareholders is Tk. 7,61,26,095.00. Valuation Update With 7 Day Price Move • Sep 25
Investor sentiment improved over the past week After last week's 16% share price gain to ৳44.70, the stock trades at a trailing P/E ratio of 23.6x. Average trailing P/E is 26x in the Chemicals industry in Bangladesh. Total loss to shareholders of 16% over the past year. Buying Opportunity • Apr 28
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 3.7%. The fair value is estimated to be ৳47.41, however this is not to be taken as a buy 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 13%. Board Change • Apr 27
Less than half of directors are independent Following the recent departure of a director, there is only 1 independent director on the board. The company's board is composed of: 1 independent director. 4 non-independent directors. Independent Director Nasima Chowdhury was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Buying Opportunity • Apr 18
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 8.2%. The fair value is estimated to be ৳47.25, however this is not to be taken as a buy 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 13%. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment improved over the past week After last week's 17% share price gain to ৳44.50, the stock trades at a trailing P/E ratio of 23x. Average trailing P/E is 28x in the Chemicals industry in Bangladesh. Total returns to shareholders of 24% over the past year. Reported Earnings • Feb 09
Second quarter 2022 earnings: Revenues and EPS in line with analyst expectations Second quarter 2022 results: EPS: ৳0.45 (down from ৳0.51 in 2Q 2021). Revenue: ৳134.7m (down 7.0% from 2Q 2021). Net income: ৳45.8m (down 17% from 2Q 2021). Profit margin: 34% (down from 38% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Reported Earnings • Nov 26
First quarter 2022 earnings: Revenues and EPS in line with analyst expectations First quarter 2022 results: EPS: ৳0.49 (down from ৳0.50 in 1Q 2021). Revenue: ৳140.3m (up 9.5% from 1Q 2021). Net income: ৳50.3m (up 16% from 1Q 2021). Profit margin: 36% (up from 34% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Upcoming Dividend • Nov 21
Upcoming dividend of ৳0.50 per share Eligible shareholders must have bought the stock before 28 November 2021. Payment date: 23 January 2022. Trailing yield: 1.1%. Lower than top quartile of Bangladeshi dividend payers (2.9%). Lower than average of industry peers (2.0%). Valuation Update With 7 Day Price Move • Aug 22
Investor sentiment improved over the past week After last week's 16% share price gain to ৳61.00, the stock trades at a trailing P/E ratio of 28.8x. Average trailing P/E is 35x in the Chemicals industry in Bangladesh. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment improved over the past week After last week's 17% share price gain to ৳55.10, the stock trades at a trailing P/E ratio of 26x. Average trailing P/E is 33x in the Chemicals industry in Bangladesh. Reported Earnings • Jun 05
Third quarter 2021 earnings released: EPS ৳0.54 (vs ৳0.47 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: ৳147.1m (up 13% from 3Q 2020). Net income: ৳55.3m (up 36% from 3Q 2020). Profit margin: 38% (up from 31% in 3Q 2020). The increase in margin was driven by higher revenue. Valuation Update With 7 Day Price Move • Apr 27
Investor sentiment improved over the past week After last week's 18% share price gain to ৳47.20, the stock trades at a trailing P/E ratio of 24.3x. Average trailing P/E is 33x in the Chemicals industry in Bangladesh. Valuation Update With 7 Day Price Move • Mar 01
Investor sentiment improved over the past week After last week's 15% share price gain to ৳40.20, the stock is trading at a trailing P/E ratio of 20.7x, up from the previous P/E ratio of 18x. This compares to an average P/E of 34x in the Chemicals industry in Bangladesh. Is New 90 Day High Low • Feb 23
New 90-day low: ৳34.90 The company is down 35% from its price of ৳53.98 on 24 November 2020. The Bangladeshi market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 9.0% over the same period. Valuation Update With 7 Day Price Move • Feb 04
Investor sentiment deteriorated over the past week After last week's 16% share price decline to ৳37.00, the stock is trading at a trailing P/E ratio of 19x, down from the previous P/E ratio of 22.6x. This compares to an average P/E of 33x in the Chemicals industry in Bangladesh. Reported Earnings • Feb 03
Second quarter 2021 earnings released: EPS ৳0.55 (vs ৳0.41 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: ৳144.8m (up 17% from 2Q 2020). Net income: ৳54.9m (up 51% from 2Q 2020). Profit margin: 38% (up from 29% in 2Q 2020). The increase in margin was driven by higher revenue. Is New 90 Day High Low • Feb 03
New 90-day low: ৳39.10 The company is down 16% from its price of ৳46.48 on 05 November 2020. The Bangladeshi market is up 15% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Chemicals industry, which is up 8.0% over the same period. Valuation Update With 7 Day Price Move • Jan 18
Investor sentiment deteriorated over the past week After last week's 17% share price decline to ৳44.10, the stock is trading at a trailing P/E ratio of 22.1x, down from the previous P/E ratio of 26.5x. This compares to an average P/E of 37x in the Chemicals industry in Bangladesh. Reported Earnings • Dec 12
First quarter 2021 earnings released: EPS ৳0.55 The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: ৳128.1m (up 10.0% from 1Q 2020). Net income: ৳43.6m (up 30% from 1Q 2020). Profit margin: 34% (up from 29% in 1Q 2020). The increase in margin was driven by higher revenue. Annuncio • Nov 06
Associated Oxygen Limited, Annual General Meeting, Dec 22, 2020 Associated Oxygen Limited, Annual General Meeting, Dec 22, 2020, at 15:30 Bangladesh Standard Time. Agenda: To approve dividend.