Subdued Growth No Barrier To Theta Edge Berhad (KLSE:THETA) With Shares Advancing 27%
Apr 17
Malaysian (KLSE) IT Industry Analysis
UpdatedApr 18, 2024
DataAggregated Company Financials
Companies25
- 7D-0.4%
- 3M7.9%
- 1Y2.3%
- YTD2.5%
The IT is pretty flat in the last 7 days, but Theta Edge Berhad has stood out, gaining 26%. Furthermore, the industry has been flat for the past year as well. Earnings are forecast to grow by 5.6% 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 |
|---|---|---|---|---|---|---|
| Thu, 18 Apr 2024 | RM5.2b | RM3.2b | -RM7,938,032.00 | 21.6x | -653.3x | 1.6x |
| Sat, 16 Mar 2024 | RM5.1b | RM3.2b | -RM7,938,032.00 | 22.7x | -639x | 1.6x |
| Mon, 12 Feb 2024 | RM4.8b | RM3.2b | -RM6,440,897.00 | 17.1x | -741.9x | 1.5x |
| Wed, 10 Jan 2024 | RM5.2b | RM3.2b | -RM6,233,481.00 | 18.4x | -830.1x | 1.6x |
| Fri, 08 Dec 2023 | RM4.8b | RM3.2b | -RM6,233,481.00 | 17.3x | -777x | 1.5x |
| Sun, 05 Nov 2023 | RM4.8b | RM3.1b | RM12.1m | 18.8x | 400.2x | 1.5x |
| Tue, 03 Oct 2023 | RM4.8b | RM3.1b | RM9.5m | 18.7x | 504x | 1.5x |
| Thu, 31 Aug 2023 | RM5.0b | RM3.1b | RM44.9m | 18.1x | 111.4x | 1.6x |
| Sat, 29 Jul 2023 | RM5.2b | RM3.0b | RM5.8m | 22.3x | 887.1x | 1.7x |
| Mon, 26 Jun 2023 | RM6.4b | RM4.4b | RM252.3k | 20x | 25260.6x | 1.4x |
| Wed, 24 May 2023 | RM5.8b | RM4.3b | RM357.3m | 16.5x | 16.2x | 1.3x |
| Fri, 21 Apr 2023 | RM6.4b | RM4.3b | RM356.6m | 22.6x | 17.8x | 1.5x |
| Sun, 19 Mar 2023 | RM6.2b | RM4.3b | RM356.6m | 27.7x | 17.3x | 1.4x |
| Tue, 14 Feb 2023 | RM8.4b | RM5.0b | RM386.6m | 30.6x | 21.6x | 1.7x |
| Thu, 12 Jan 2023 | RM14.7b | RM5.7b | RM773.4m | 27.7x | 19x | 2.6x |
| Sat, 10 Dec 2022 | RM15.1b | RM5.8b | RM802.8m | 24.3x | 18.9x | 2.6x |
| Mon, 07 Nov 2022 | RM14.8b | RM5.4b | RM960.3m | 31.7x | 15.4x | 2.7x |
| Wed, 05 Oct 2022 | RM14.3b | RM5.4b | RM983.2m | 31.2x | 14.6x | 2.7x |
| Fri, 02 Sep 2022 | RM14.5b | RM5.4b | RM983.2m | 29.7x | 14.8x | 2.7x |
| Sun, 31 Jul 2022 | RM14.2b | RM4.0b | RM452.9m | 17.7x | 31.4x | 3.6x |
| Tue, 28 Jun 2022 | RM15.0b | RM4.0b | RM447.8m | 31.4x | 33.5x | 3.7x |
| Thu, 26 May 2022 | RM16.0b | RM3.9b | RM385.1m | 33.3x | 41.5x | 4.1x |
| Sat, 23 Apr 2022 | RM17.4b | RM3.8b | RM384.5m | 35.2x | 45.3x | 4.6x |
| Mon, 21 Mar 2022 | RM16.4b | RM3.8b | RM373.5m | 39.1x | 43.8x | 4.3x |
| Wed, 16 Feb 2022 | RM17.7b | RM3.4b | RM340.4m | 31.5x | 51.9x | 5.2x |
| Fri, 14 Jan 2022 | RM17.3b | RM3.4b | RM340.8m | 29.3x | 50.8x | 5.1x |
| Sun, 12 Dec 2021 | RM16.9b | RM3.4b | RM340.8m | 27.4x | 49.7x | 5x |
| Tue, 09 Nov 2021 | RM17.8b | RM3.3b | RM335.8m | 20.9x | 53.1x | 5.4x |
| Thu, 07 Oct 2021 | RM16.9b | RM3.3b | RM334.1m | 21.9x | 50.4x | 5.1x |
| Sat, 04 Sep 2021 | RM17.2b | RM3.3b | RM272.3m | 20.4x | 63.3x | 5.2x |
| Mon, 02 Aug 2021 | RM16.1b | RM3.3b | RM272.3m | 20.4x | 59.1x | 4.9x |
| Thu, 06 May 2021 | RM17.8b | RM3.2b | RM235.2m | 24.6x | 75.8x | 5.6x |
Price to Earnings Ratio
75.8x
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 3.2x is higher than the industry's current PS ratio of 1.6x.
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 | -1.10% | |
| Tech | -1.60% | |
| IT | -0.36% | |
| IT Consulting | -0.17% | |
| Internet Services and Infrastructure | -3.18% | |
| Data Processing Services | -3.39% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 21.8x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 20% over the next 5 years.
- However this is lower than its past earnings growth rate of 59% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 3.7% 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 | |
|---|---|---|---|---|---|
| THETA Theta Edge Berhad | RM1.67 | 26.5% +RM41.3m | 160.9% | PE20.6x | |
| LGMS LGMS Berhad | RM1.07 | 5.9% +RM27.4m | -7.0% | PE43.5x | |
| MMAG MMAG Holdings Berhad | RM0.20 | 5.3% +RM17.0m | 33.3% | PS0.7x | |
| PRIVA Privasia Technology Berhad | RM0.10 | 5.0% +RM3.1m | 0% | PE96.3x | |
| FSBM FSBM Holdings Berhad | RM0.34 | 1.5% +RM2.4m | 23.6% | PE84.6x |