Is Heineken Malaysia Berhad (KLSE:HEIM) A Risky Investment?
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Has the Malaysian Consumer Staples Sector valuation changed over the past few years?
|Thu, 02 Dec 2021||RM226.6b||RM151.6b||RM14.1b||14.1x|
|Sat, 30 Oct 2021||RM240.6b||RM143.0b||RM12.7b||15.1x|
|Mon, 27 Sep 2021||RM232.0b||RM142.8b||RM12.7b||14.9x|
|Wed, 25 Aug 2021||RM240.7b||RM142.6b||RM12.7b||17.1x|
|Thu, 01 Jul 2021||RM234.8b||RM142.6b||RM12.7b||15.3x|
|Sun, 04 Apr 2021||RM252.1b||RM133.3b||RM10.9b||18x|
|Wed, 06 Jan 2021||RM256.6b||RM128.8b||RM8.7b||21.3x|
|Sat, 10 Oct 2020||RM253.8b||RM125.8b||RM7.2b||19.7x|
|Fri, 03 Jul 2020||RM246.1b||RM123.0b||RM6.0b||21.7x|
|Mon, 06 Apr 2020||RM227.2b||RM123.1b||RM4.6b||18.3x|
|Thu, 09 Jan 2020||RM269.9b||RM123.1b||RM5.5b||23.6x|
|Wed, 02 Oct 2019||RM247.7b||RM122.9b||RM5.3b||22.4x|
|Sat, 06 Jul 2019||RM256.7b||RM122.1b||RM4.7b||23.4x|
|Tue, 09 Apr 2019||RM258.3b||RM116.6b||RM4.9b||22.2x|
|Mon, 31 Dec 2018||RM246.0b||RM116.5b||RM4.9b||23.5x|
Current Industry PE: Investors are more pessimistic on the industry, considering it's trading at a PE ratio of 14.1x which is lower than its 3-year average PE of 20.6x. Given that earnings are expected to decline by 2.2%, the lower than average PE seems justified.
Past Earnings Growth: The earnings for companies in the Consumer Staples industry have grown 27% per year over the last three years, and revenues for these companies have grown 7.7% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Which industries have driven the changes within the Malaysian Consumer Staples sector?
|Food and Staples Retail||-0.73%|
Industry PE: Investors are most optimistic about the Personal Products industry which is trading above its 3-year average PE ratio of 40.1x. This is likely because analysts are expecting annual earnings growth of 42%, which is higher than its past year's earnings decline of 28% per year. Meanwhile, investors are most pessimistic about the Household Products industry, which is trading below its 3-year average of 30.1x.
Forecasted Growth: Analysts are most optimistic on the Food and Staples Retail industry, expecting annual earnings growth of 50% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Food industry is expected to see its earnings decline by 5.5% per year over the next few years.
Which companies have driven the market over the last 7 days?
|QL QL Resources Berhad||1.3%+RM146.0m||-24.2%||PE41x|
|NESTLE Nestlé (Malaysia) Berhad||0.3%+RM93.8m||-2.3%||PE53.2x|
|RUBEREX Rubberex Corporation (M) Berhad||19.2%+RM86.4m||-65.6%||PE2.3x|
|DLADY Dutch Lady Milk Industries Berhad||1.5%+RM32.0m||-9.0%||PE25.3x|
|F&N Fraser & Neave Holdings Bhd||0.3%+RM29.3m||-23.7%||PE23x|
PPB Group Berhad
QL Resources Berhad
Kuala Lumpur Kepong Berhad
Heineken Malaysia Berhad
China Ouhua Winery Holdings
Rubberex Corporation (M) Berhad
Dutch Lady Milk Industries Berhad
7-Eleven Malaysia Holdings Berhad
MSM Malaysia Holdings Berhad
IOI Corporation Berhad
Guan Chong Berhad
Fraser & Neave Holdings Bhd
Sime Darby Plantation Berhad
Nestlé (Malaysia) Berhad
Carlsberg Brewery Malaysia Berhad
PLS Plantations Berhad