Returns On Capital Are Showing Encouraging Signs At Mestron Holdings Berhad (KLSE:MESTRON)
Feb 14
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Malaysian (KLSE) Materials Sector Analysis
UpdatedFeb 16, 2025
DataAggregated Company Financials
Companies122
- 7D-2.8%
- 3M-1.7%
- 1Y-16.3%
- YTD-5.7%
Over the last 7 days, the Materials industry has dropped 2.8%, driven by a pullback from PETRONAS Chemicals Group Berhad of 8.0%. Meanwhile, Mestron Holdings Berhad actually outperformed within the industry, gaining 18% in the last week. Overall the industry is down 16% in 12 months. Earnings are forecast to grow by 18% annually.
Sector Valuation and Performance
Has the Malaysian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 16 Feb 2025 | RM 131.3b | RM 138.3b | RM 3.5b | 14x | 37.1x | 0.9x |
| Tue, 14 Jan 2025 | RM 134.5b | RM 138.4b | RM 3.9b | 14.4x | 34.8x | 1x |
| Thu, 12 Dec 2024 | RM 140.0b | RM 138.2b | RM 3.8b | 14.3x | 36.6x | 1x |
| Sat, 09 Nov 2024 | RM 136.9b | RM 134.6b | RM 5.0b | 14.2x | 27.4x | 1x |
| Mon, 07 Oct 2024 | RM 145.2b | RM 134.5b | RM 5.2b | 13.9x | 28.1x | 1.1x |
| Wed, 04 Sep 2024 | RM 143.2b | RM 134.3b | RM 5.2b | 14.5x | 27.7x | 1.1x |
| Fri, 02 Aug 2024 | RM 150.6b | RM 132.6b | RM 4.8b | 15.6x | 31.5x | 1.1x |
| Sun, 30 Jun 2024 | RM 158.9b | RM 132.5b | RM 4.7b | 15.9x | 33.6x | 1.2x |
| Tue, 28 May 2024 | RM 160.3b | RM 131.2b | RM 4.3b | 15.6x | 37.1x | 1.2x |
| Thu, 25 Apr 2024 | RM 158.8b | RM 131.5b | RM 4.3b | 16.3x | 37x | 1.2x |
| Sat, 23 Mar 2024 | RM 149.4b | RM 131.0b | RM 4.3b | 15.2x | 35.1x | 1.1x |
| Mon, 19 Feb 2024 | RM 150.4b | RM 133.8b | RM 4.2b | 16.3x | 35.6x | 1.1x |
| Wed, 17 Jan 2024 | RM 153.7b | RM 134.1b | RM 4.0b | 16.6x | 38.4x | 1.1x |
| Fri, 15 Dec 2023 | RM 150.4b | RM 134.0b | RM 3.9b | 16.2x | 38.3x | 1.1x |
| Sun, 12 Nov 2023 | RM 151.9b | RM 136.2b | RM 5.5b | 15.6x | 27.5x | 1.1x |
| Tue, 10 Oct 2023 | RM 150.0b | RM 136.7b | RM 5.2b | 15.6x | 28.9x | 1.1x |
| Thu, 07 Sep 2023 | RM 153.5b | RM 136.7b | RM 5.5b | 16.2x | 27.8x | 1.1x |
| Sat, 05 Aug 2023 | RM 149.7b | RM 140.1b | RM 7.3b | 13.5x | 20.5x | 1.1x |
| Mon, 03 Jul 2023 | RM 138.2b | RM 141.2b | RM 7.5b | 12x | 18.5x | 1x |
| Wed, 31 May 2023 | RM 143.4b | RM 139.9b | RM 7.8b | 12.1x | 18.4x | 1x |
| Fri, 28 Apr 2023 | RM 149.8b | RM 140.5b | RM 10.1b | 11x | 14.8x | 1.1x |
| Sun, 26 Mar 2023 | RM 143.0b | RM 140.7b | RM 10.2b | 11.6x | 14.1x | 1x |
| Tue, 21 Feb 2023 | RM 163.8b | RM 139.3b | RM 13.2b | 10.9x | 12.5x | 1.2x |
| Thu, 19 Jan 2023 | RM 165.5b | RM 139.8b | RM 13.7b | 10.4x | 12x | 1.2x |
| Sat, 17 Dec 2022 | RM 161.3b | RM 141.9b | RM 13.8b | 9.9x | 11.7x | 1.1x |
| Mon, 14 Nov 2022 | RM 160.1b | RM 135.1b | RM 14.2b | 9.4x | 11.3x | 1.2x |
| Wed, 12 Oct 2022 | RM 151.4b | RM 134.5b | RM 14.7b | 8.9x | 10.3x | 1.1x |
| Fri, 09 Sep 2022 | RM 165.5b | RM 134.8b | RM 14.7b | 10.1x | 11.3x | 1.2x |
| Sun, 07 Aug 2022 | RM 162.0b | RM 127.6b | RM 14.5b | 9.7x | 11.1x | 1.3x |
| Tue, 05 Jul 2022 | RM 161.1b | RM 126.5b | RM 15.0b | 9.1x | 10.8x | 1.3x |
| Thu, 02 Jun 2022 | RM 181.5b | RM 126.1b | RM 15.0b | 10.1x | 12.1x | 1.4x |
| Sat, 30 Apr 2022 | RM 193.8b | RM 118.2b | RM 14.0b | 10.7x | 13.8x | 1.6x |
| Mon, 28 Mar 2022 | RM 187.1b | RM 117.6b | RM 14.4b | 10.5x | 13x | 1.6x |
| Wed, 23 Feb 2022 | RM 187.8b | RM 110.3b | RM 12.2b | 12.5x | 15.4x | 1.7x |
Price to Earnings Ratio
15.4x
Current Industry PE
- Investors are optimistic on the Malaysian Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 37.1x which is higher than its 3-year average PE of 23.1x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.95x.
Past Earnings Growth
- The earnings for companies in the Materials industry have declined 34% per year over the last three years.
- Meanwhile revenues for these companies have grown 8.0% 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, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Malaysian Materials sector?
| MY Market | -0.45% | |
| Materials | -2.78% | |
| Packaging | -0.46% | |
| Metals and Mining | -0.48% | |
| Paper and Forestry Products | -0.93% | |
| Basic Materials | -1.63% | |
| Chemicals | -5.43% | |
Industry PE
- Investors are most optimistic about the Chemicals industry which is trading above its 3-year average PE ratio of 22.7x.
- Analysts expect its future annual earnings growth (23.6%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 8.2% per year.
- In contrast, the Basic Materials industry is expected to see its earnings grow by 9.7% 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 | |
|---|---|---|---|---|---|
| MESTRON Mestron Holdings Berhad | RM 0.30 | 17.6% +RM 45.0m | -6.3% | PE34.5x | |
| ASIAPLY Asia Poly Holdings Berhad | RM 0.15 | 24.0% +RM 28.8m | 106.7% | PS1.3x | |
| MSC Malaysia Smelting Corporation Berhad | RM 2.26 | 1.3% +RM 12.6m | 10.2% | PE16.2x | |
| MUDA Muda Holdings Berhad | RM 1.06 | 2.9% +RM 9.2m | -24.3% | PS0.2x | |
| BKAWAN Batu Kawan Berhad | RM 20.02 | 0.1% +RM 7.8m | 0.1% | PE26.1x |
