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Market Cap

RM273.0m

Last Updated

2021/09/16 11:02 UTC

Data Sources

Company Financials +

Executive Summary

Gadang Holdings Berhad, an investment holding company, engages in civil engineering and construction, property development, water supply, and mechanical and electrical engineering activities in Malaysia, Indonesia, and Singapore. More Details


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.

Share Price & News

How has Gadang Holdings Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GADANG is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GADANG's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-2.6%

GADANG

-0.8%

MY Construction

-0.9%

MY Market


1 Year Return

-9.6%

GADANG

-2.4%

MY Construction

6.1%

MY Market

Return vs Industry: GADANG underperformed the MY Construction industry which returned -2.4% over the past year.

Return vs Market: GADANG underperformed the MY Market which returned 6.1% over the past year.


Shareholder returns

GADANGIndustryMarket
7 Day-2.6%-0.8%-0.9%
30 Day1.4%5.9%2.7%
90 Day-5.1%-5.7%-0.7%
1 Year-7.4%-9.6%1.1%-2.4%10.2%6.1%
3 Year-42.0%-46.8%-13.0%-19.3%1.6%-8.0%
5 Year-62.3%-67.2%-36.3%-45.2%12.1%-6.8%

Long-Term Price Volatility Vs. Market

How volatile is Gadang Holdings Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Gadang Holdings Berhad undervalued compared to its fair value and its price relative to the market?

26.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GADANG (MYR0.38) is trading above our estimate of fair value (MYR0.12)

Significantly Below Fair Value: GADANG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GADANG is poor value based on its PE Ratio (26.7x) compared to the MY Construction industry average (18.3x).

PE vs Market: GADANG is poor value based on its PE Ratio (26.7x) compared to the MY market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: GADANG is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: GADANG is good value based on its PB Ratio (0.3x) compared to the MY Construction industry average (0.9x).


Future Growth

How is Gadang Holdings Berhad forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

40.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GADANG's forecast earnings growth (40.2% per year) is above the savings rate (3.6%).

Earnings vs Market: GADANG's earnings (40.2% per year) are forecast to grow faster than the MY market (10.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GADANG's revenue (5.5% per year) is forecast to grow slower than the MY market (6.2% per year).

High Growth Revenue: GADANG's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GADANG's Return on Equity is forecast to be low in 3 years time (5.3%).


Past Performance

How has Gadang Holdings Berhad performed over the past 5 years?

-33.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GADANG has high quality earnings.

Growing Profit Margin: GADANG's current net profit margins (1.8%) are lower than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: GADANG's earnings have declined by 33.2% per year over the past 5 years.

Accelerating Growth: GADANG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GADANG had negative earnings growth (-71.1%) over the past year, making it difficult to compare to the Construction industry average (-2%).


Return on Equity

High ROE: GADANG's Return on Equity (1.3%) is considered low.


Financial Health

How is Gadang Holdings Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: GADANG's short term assets (MYR1.4B) exceed its short term liabilities (MYR484.8M).

Long Term Liabilities: GADANG's short term assets (MYR1.4B) exceed its long term liabilities (MYR446.8M).


Debt to Equity History and Analysis

Debt Level: GADANG's debt to equity ratio (48.4%) is considered high.

Reducing Debt: GADANG's debt to equity ratio has increased from 37.1% to 48.4% over the past 5 years.

Debt Coverage: GADANG's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: GADANG's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Dividend

What is Gadang Holdings Berhad current dividend yield, its reliability and sustainability?

0.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GADANG's dividend (0.8%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.51%).

High Dividend: GADANG's dividend (0.8%) is low compared to the top 25% of dividend payers in the MY market (4.09%).


Stability and Growth of Payments

Stable Dividend: GADANG is not paying a notable dividend for the MY market, therefore no need to check if payments are stable.

Growing Dividend: GADANG is not paying a notable dividend for the MY market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: GADANG is not paying a notable dividend for the MY market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GADANG's dividend in 3 years as they are not forecast to pay a notable one for the MY market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.0yrs

Average management tenure


CEO

Kok Onn (70 yo)

24yrs

Tenure

RM1,585,070

Compensation

Tan Sri Dato. Kok Onn has been the Chief Executive Officer and Managing Director at Gadang Holdings Berhad since September 2, 1997. Tan Sri Dato. Kok served as Joint Managing Director of Gadang Holdings Be...


CEO Compensation Analysis

Compensation vs Market: Kok's total compensation ($USD381.01K) is above average for companies of similar size in the MY market ($USD124.03K).

Compensation vs Earnings: Kok's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GADANG's management team is seasoned and experienced (11 years average tenure).


Board Members

Experienced Board: GADANG's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Gadang Holdings Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Gadang Holdings Berhad
  • Ticker: GADANG
  • Exchange: KLSE
  • Founded: 1993
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: RM273.023m
  • Shares outstanding: 728.06m
  • Website: https://www.gadang.com.my

Number of Employees


Location

  • Gadang Holdings Berhad
  • Wisma Gadang
  • No. 52, Jalan Tago 2
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 52200
  • Malaysia

Listings


Biography

Gadang Holdings Berhad, an investment holding company, engages in civil engineering and construction, property development, water supply, and mechanical and electrical engineering activities in Malaysia, I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 11:02
End of Day Share Price2021/09/15 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.