Be Wary Of LGMS Berhad (KLSE:LGMS) And Its Returns On Capital
Jul 23
Malaysian (KLSE) IT Industry Analysis
UpdatedJul 26, 2024
DataAggregated Company Financials
Companies26
- 7D-2.3%
- 3M21.7%
- 1Y25.2%
- YTD23.9%
Over the last 7 days, the IT industry has dropped 2.3%, and Datasonic Group Berhad contributed the most with a 3.9% decline. On the other hand Go Hub Capital Berhad is actually up 29%. In the past year, the industry has gained 25%. Earnings are forecast to grow by 13% annually.
Industry Valuation and Performance
Has the Malaysian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 26 Jul 2024 | RM 6.8b | RM 3.1b | -RM 54,633,725.00 | 33.5x | -124.8x | 2.2x |
| Sun, 23 Jun 2024 | RM 6.1b | RM 3.1b | -RM 72,993,263.00 | 26.8x | -83.4x | 1.9x |
| Tue, 21 May 2024 | RM 5.9b | RM 3.1b | -RM 23,093,361.00 | 26x | -253.6x | 1.9x |
| Thu, 18 Apr 2024 | RM 5.2b | RM 3.2b | -RM 7,938,032.00 | 21.6x | -653.3x | 1.6x |
| Sat, 16 Mar 2024 | RM 5.1b | RM 3.2b | -RM 7,938,032.00 | 22.7x | -639x | 1.6x |
| Mon, 12 Feb 2024 | RM 4.8b | RM 3.2b | -RM 6,440,897.00 | 17.1x | -741.9x | 1.5x |
| Wed, 10 Jan 2024 | RM 5.2b | RM 3.2b | -RM 6,233,481.00 | 18.4x | -830.1x | 1.6x |
| Fri, 08 Dec 2023 | RM 4.8b | RM 3.2b | -RM 6,233,481.00 | 17.3x | -777x | 1.5x |
| Sun, 05 Nov 2023 | RM 4.8b | RM 3.1b | RM 12.1m | 18.8x | 400.2x | 1.5x |
| Tue, 03 Oct 2023 | RM 4.8b | RM 3.1b | RM 9.5m | 18.7x | 504x | 1.5x |
| Thu, 31 Aug 2023 | RM 5.0b | RM 3.1b | RM 44.9m | 18.1x | 111.4x | 1.6x |
| Sat, 29 Jul 2023 | RM 5.2b | RM 3.0b | RM 5.8m | 22.3x | 887.1x | 1.7x |
| Mon, 26 Jun 2023 | RM 6.4b | RM 4.4b | RM 252.3k | 20x | 25260.6x | 1.4x |
| Wed, 24 May 2023 | RM 5.8b | RM 4.3b | RM 357.3m | 16.5x | 16.2x | 1.3x |
| Fri, 21 Apr 2023 | RM 6.4b | RM 4.3b | RM 356.6m | 22.6x | 17.8x | 1.5x |
| Sun, 19 Mar 2023 | RM 6.2b | RM 4.3b | RM 356.6m | 27.7x | 17.3x | 1.4x |
| Tue, 14 Feb 2023 | RM 8.4b | RM 5.0b | RM 386.6m | 30.6x | 21.6x | 1.7x |
| Thu, 12 Jan 2023 | RM 14.7b | RM 5.7b | RM 773.4m | 27.7x | 19x | 2.6x |
| Sat, 10 Dec 2022 | RM 15.1b | RM 5.8b | RM 802.8m | 24.3x | 18.9x | 2.6x |
| Mon, 07 Nov 2022 | RM 14.8b | RM 5.4b | RM 960.3m | 31.7x | 15.4x | 2.7x |
| Wed, 05 Oct 2022 | RM 14.3b | RM 5.4b | RM 983.2m | 31.2x | 14.6x | 2.7x |
| Fri, 02 Sep 2022 | RM 14.5b | RM 5.4b | RM 983.2m | 29.7x | 14.8x | 2.7x |
| Sun, 31 Jul 2022 | RM 14.2b | RM 4.0b | RM 452.9m | 17.7x | 31.4x | 3.6x |
| Tue, 28 Jun 2022 | RM 15.0b | RM 4.0b | RM 447.8m | 31.4x | 33.5x | 3.7x |
| Thu, 26 May 2022 | RM 16.0b | RM 3.9b | RM 385.1m | 33.3x | 41.5x | 4.1x |
| Sat, 23 Apr 2022 | RM 17.4b | RM 3.8b | RM 384.5m | 35.2x | 45.3x | 4.6x |
| Mon, 21 Mar 2022 | RM 16.4b | RM 3.8b | RM 373.5m | 39.1x | 43.8x | 4.3x |
| Wed, 16 Feb 2022 | RM 17.7b | RM 3.4b | RM 340.4m | 31.5x | 51.9x | 5.2x |
| Fri, 14 Jan 2022 | RM 17.3b | RM 3.4b | RM 340.8m | 29.3x | 50.8x | 5.1x |
| Sun, 12 Dec 2021 | RM 16.9b | RM 3.4b | RM 340.8m | 27.4x | 49.7x | 5x |
| Tue, 09 Nov 2021 | RM 17.8b | RM 3.3b | RM 335.8m | 20.9x | 53.1x | 5.4x |
| Thu, 07 Oct 2021 | RM 16.9b | RM 3.3b | RM 334.1m | 21.9x | 50.4x | 5.1x |
| Sat, 04 Sep 2021 | RM 17.2b | RM 3.3b | RM 272.3m | 20.4x | 63.3x | 5.2x |
| Mon, 02 Aug 2021 | RM 16.1b | RM 3.3b | RM 272.3m | 20.4x | 59.1x | 4.9x |
Price to Earnings Ratio
59.1x
Current Industry PE
- Investors are pessimistic on the Malaysian IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 2.9x is higher than the industry's current PS ratio of 2.2x.
Past Earnings Growth
- Total earnings for the IT industry have declined over the last three years, with the industry now making a loss overall.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, 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 Tech industry?
| MY Market | -1.65% | |
| Tech | -3.91% | |
| IT | -2.35% | |
| IT Consulting | -2.12% | |
| Data Processing Services | -4.92% | |
| Internet Services and Infrastructure | -5.72% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry even though it's trading below its 3-year average PE ratio of 20.9x.
- Analysts are expecting annual earnings growth of 7.5%, which is higher than its past year's earnings decline of 16.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings growth rate of 22% per year.
- In contrast, the Data Processing Services industry is expected to see its earnings grow by 7.5% 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 | |
|---|---|---|---|---|---|
| GOHUB Go Hub Capital Berhad | RM 1.15 | 29.2% +RM 104.0m | n/a | n/a | |
| EAH EA Holdings Berhad | RM 0.01 | 100.0% +RM 32.3m | 0% | PS1.3x | |
| DATAPRP Dataprep Holdings Bhd | RM 0.23 | 7.0% +RM 11.1m | 31.4% | PS5.5x | |
| EDARAN Edaran Berhad | RM 1.72 | 5.5% +RM 5.2m | 218.5% | PE35.1x |
