There's Reason For Concern Over BM GreenTech Berhad's (KLSE:BMGREEN) Massive 29% Price Jump
Jun 07
Malaysian (KLSE) Machinery Industry Analysis
UpdatedJun 08, 2024
DataAggregated Company Financials
Companies46
- 7D2.4%
- 3M19.7%
- 1Y17.1%
- YTD17.7%
The Machinery industry is up 2.4% in the last week, with SAM Engineering & Equipment (M) Berhad up 8.6%. During this same period, the Chin Hin Group Property Berhad underperformed, falling 7.7%. In the last 12 months, the industry was up 17%. Looking forward, earnings are forecast to grow by 27% annually.
Industry Valuation and Performance
Has the Malaysian Machinery Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 08 Jun 2024 | RM26.6b | RM10.6b | RM393.5m | 22.4x | 67.6x | 2.5x |
| Mon, 06 May 2024 | RM23.4b | RM10.6b | RM466.2m | 22.6x | 50.2x | 2.2x |
| Wed, 03 Apr 2024 | RM22.0b | RM10.6b | RM457.5m | 18.8x | 48.1x | 2.1x |
| Fri, 01 Mar 2024 | RM21.3b | RM10.4b | RM518.5m | 20.9x | 41.2x | 2.1x |
| Sun, 28 Jan 2024 | RM20.1b | RM10.3b | RM468.1m | 21.1x | 42.9x | 1.9x |
| Tue, 26 Dec 2023 | RM21.8b | RM10.5b | RM787.7m | 20.8x | 27.6x | 2.1x |
| Thu, 23 Nov 2023 | RM21.7b | RM10.5b | RM781.4m | 20x | 27.8x | 2.1x |
| Sat, 21 Oct 2023 | RM21.7b | RM10.6b | RM819.9m | 20.3x | 26.4x | 2x |
| Mon, 18 Sep 2023 | RM22.8b | RM10.6b | RM812.9m | 20.4x | 28x | 2.1x |
| Wed, 16 Aug 2023 | RM22.7b | RM10.9b | RM1.0b | 18.4x | 22.1x | 2.1x |
| Fri, 14 Jul 2023 | RM22.0b | RM10.9b | RM1.0b | 19.2x | 21.1x | 2x |
| Sun, 11 Jun 2023 | RM20.6b | RM10.9b | RM1.1b | 18.3x | 19.2x | 1.9x |
| Tue, 09 May 2023 | RM21.0b | RM11.0b | RM997.8m | 17.2x | 21.1x | 1.9x |
| Thu, 06 Apr 2023 | RM22.1b | RM11.0b | RM1.0b | 17x | 22x | 2x |
| Sat, 04 Mar 2023 | RM22.4b | RM11.0b | RM1.0b | 16.8x | 22.4x | 2x |
| Mon, 30 Jan 2023 | RM23.4b | RM11.0b | RM849.5m | 17.2x | 27.6x | 2.1x |
| Wed, 28 Dec 2022 | RM21.7b | RM11.0b | RM849.4m | 15.7x | 25.5x | 2x |
| Fri, 25 Nov 2022 | RM21.7b | RM10.5b | RM796.8m | 16.7x | 27.2x | 2.1x |
| Sun, 23 Oct 2022 | RM19.9b | RM10.4b | RM803.6m | 14.9x | 24.7x | 1.9x |
| Tue, 20 Sep 2022 | RM21.0b | RM10.4b | RM804.1m | 17.2x | 26.1x | 2x |
| Thu, 18 Aug 2022 | RM20.4b | RM9.8b | RM687.9m | 17.5x | 29.6x | 2.1x |
| Sat, 16 Jul 2022 | RM17.1b | RM9.7b | RM667.8m | 16.6x | 25.6x | 1.8x |
| Mon, 13 Jun 2022 | RM18.4b | RM9.6b | RM645.6m | 13.1x | 28.5x | 1.9x |
| Wed, 11 May 2022 | RM17.8b | RM9.1b | RM680.2m | 15.7x | 26.1x | 1.9x |
| Fri, 08 Apr 2022 | RM20.3b | RM9.2b | RM702.6m | 17.3x | 28.9x | 2.2x |
| Sun, 06 Mar 2022 | RM19.2b | RM9.1b | RM704.4m | 15.5x | 27.2x | 2.1x |
| Tue, 01 Feb 2022 | RM22.6b | RM8.4b | RM696.5m | 19.4x | 32.4x | 2.7x |
| Thu, 30 Dec 2021 | RM25.8b | RM8.4b | RM690.6m | 18.8x | 37.3x | 3.1x |
| Sat, 27 Nov 2021 | RM25.1b | RM8.2b | RM629.1m | 15.6x | 39.9x | 3x |
| Mon, 25 Oct 2021 | RM25.7b | RM8.0b | RM584.6m | 18.5x | 44x | 3.2x |
| Wed, 22 Sep 2021 | RM23.5b | RM7.9b | RM411.3m | 20.6x | 57.1x | 3x |
| Fri, 20 Aug 2021 | RM22.6b | RM7.9b | RM385.0m | 22.1x | 58.6x | 2.9x |
Price to Earnings Ratio
53x
Current Industry PE
- Investors are optimistic on the Malaysian Machinery industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 67.6x which is higher than its 3-year average PE of 33.9x.
- The 3-year average PS ratio of 2.2x is lower than the industry's current PS ratio of 2.5x.
Past Earnings Growth
- The earnings for companies in the Machinery industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 11% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Malaysian Industrials industry?
| MY Market | 1.51% | |
| Industrials | 1.98% | |
| Machinery | 2.39% | |
| Industrial Machinery | 3.27% | |
| Agricultural Machinery | 0% | |
| Construction Machinery and Vehicles | -2.67% | |
Industry PE
- Investors are most optimistic about the Construction Machinery and Vehicles industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings decline of 10.2%, which is lower than the prior year's growth of 22.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Industrial Machinery industry, expecting annual earnings growth of 29% over the next 5 years.
- This is better than its past earnings decline of 11% per year.
- In contrast, the Construction Machinery and Vehicles industry is expected to see its earnings decline by 10% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SAM SAM Engineering & Equipment (M) Berhad | RM6.47 | 8.6% +RM345.3m | 41.9% | PE40.3x | |
| BMGREEN BM GreenTech Berhad | RM1.65 | 26.9% +RM180.6m | 135.7% | PE25.3x | |
| KENERGY Kawan Renergy Berhad | RM0.80 | 24.2% +RM85.3m | n/a | n/a | |
| UWC UWC Berhad | RM3.28 | 1.9% +RM66.1m | 7.9% | PE228.3x | |
| PENTA Pentamaster Corporation Berhad | RM4.91 | 1.2% +RM42.7m | 3.4% | PE40x |
