Gabungan AQRS Berhad (KLSE:GBGAQRS) - Share price, News & Analysis

Q: What is the Fair Price of GBGAQRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GBGAQRS (MYR0.32) is trading below our estimate of [[fair value]] (MYR0.38)

GBGAQRS fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	4/6
Past Performance	2/6
Financial Health	5/6
Dividends	0/6

GBGAQRS Stock Overview

Gabungan AQRS Berhad, an investment holding company, engages in the property development and construction activities in Malaysia.

Rewards

Trading at 17.7% below our estimate of its fair value

Earnings are forecast to grow 22.66% per year

Became profitable this year

Risk Analysis

Volatile share price over the past 3 months

Does not have a meaningful market cap (MYR171M)

Gabungan AQRS Berhad Competitors

Vinvest Capital Holdings Berhad

KLSE:VINVEST

RM174.4m

Gagasan Nadi Cergas Berhad

KLSE:NADIBHD

RM207.1m

Citaglobal Berhad

KLSE:CITAGLB

RM196.4m

Inta Bina Group Berhad

KLSE:INTA

RM133.8m

Price History & Performance

Summary of all time highs, changes and price drops for Gabungan AQRS Berhad
Historical stock prices
Current Share Price	RM0.32
52 Week High	RM0.59
52 Week Low	RM0.28
Beta	0.71
1 Month Change	-4.55%
3 Month Change	-20.25%
1 Year Change	-42.73%
3 Year Change	-76.84%
5 Year Change	-77.01%
Change since IPO	-74.18%

Recent News & Updates

May 25

Is Gabungan AQRS Berhad (KLSE:GBGAQRS) Expensive For A Reason? A Look At Its Intrinsic Value

In this article we are going to estimate the intrinsic value of Gabungan AQRS Berhad ( KLSE:GBGAQRS ) by projecting its...

Shareholder Returns

	GBGAQRS	MY Construction	MY Market
7D	6.8%	1.4%	1.2%
1Y	-42.7%	-12.1%	-6.5%

Return vs Industry: GBGAQRS underperformed the MY Construction industry which returned -12.1% over the past year.

Return vs Market: GBGAQRS underperformed the MY Market which returned -6.9% over the past year.

Price Volatility

Is GBGAQRS's price volatile compared to industry and market?
GBGAQRS volatility
GBGAQRS Average Weekly Movement	7.8%
Construction Industry Average Movement	5.3%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.8%

Stable Share Price: GBGAQRS is more volatile than 75% of MY stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: GBGAQRS's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

Founded	Employees	CEO	Website
2010	325	Azizan bin Jaafar	https://www.gbg.com.my

Gabungan AQRS Berhad, an investment holding company, engages in the property development and construction activities in Malaysia. Its construction projects comprise expressways, sewer pipelines, rail infrastructure projects, and apartments. The company also develops residential and commercial properties.

Gabungan AQRS Berhad Fundamentals Summary

How do Gabungan AQRS Berhad's earnings and revenue compare to its market cap?
GBGAQRS fundamental statistics
Market Cap	RM170.97m
Earnings (TTM)	RM16.60m
Revenue (TTM)	RM316.43m

10.3x

P/E Ratio

0.5x

P/S Ratio

Is GBGAQRS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GBGAQRS income statement (TTM)
Revenue	RM316.43m
Cost of Revenue	RM262.79m
Gross Profit	RM53.64m
Other Expenses	RM37.04m
Earnings	RM16.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.031
Gross Margin	16.95%
Net Profit Margin	5.25%
Debt/Equity Ratio	60.9%

How did GBGAQRS perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is GBGAQRS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GBGAQRS?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GBGAQRS. This is calculated by dividing GBGAQRS's market cap by their current preferred multiple.
What is GBGAQRS's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM170.97m

GBGAQRS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	10.1x
PEG Ratio	0.5x

Price to Earnings Ratio vs Peers

How does GBGAQRS's PE Ratio compare to its peers?

GBGAQRS PE Ratio vs Peers

The above table shows the PE ratio for GBGAQRS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	68.4x
VINVEST Vinvest Capital Holdings Berhad	166.7x	n/a	RM174.4m
NADIBHD Gagasan Nadi Cergas Berhad	50x	n/a	RM207.1m
CITAGLB Citaglobal Berhad	41.7x	n/a	RM196.4m
INTA Inta Bina Group Berhad	15.4x	34.2%	RM133.8m
GBGAQRS Gabungan AQRS Berhad	10.3x	22.7%	RM171.0m

Forward PE

Price-To-Earnings vs Peers: GBGAQRS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the peer average (68.4x).

Price to Earnings Ratio vs Industry

How does GBGAQRS's PE Ratio compare vs other companies in the MY Construction Industry?

Price-To-Earnings vs Industry: GBGAQRS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the MY Construction industry average (18.6x)

Price to Earnings Ratio vs Fair Ratio

What is GBGAQRS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GBGAQRS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.3x
Fair PE Ratio	15x

Price-To-Earnings vs Fair Ratio: GBGAQRS is good value based on its Price-To-Earnings Ratio (10.3x) compared to the estimated Fair Price-To-Earnings Ratio (15x).

Share Price vs Fair Value

What is the Fair Price of GBGAQRS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GBGAQRS (MYR0.32) is trading below our estimate of fair value (MYR0.38)

Significantly Below Fair Value: GBGAQRS is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: GBGAQRS is good value based on its PEG Ratio (0.5x)

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Future Growth

How is Gabungan AQRS Berhad forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

22.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBGAQRS's forecast earnings growth (22.7% per year) is above the savings rate (3.6%).

Earnings vs Market: GBGAQRS's earnings (22.7% per year) are forecast to grow faster than the MY market (10% per year).

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

Revenue vs Market: GBGAQRS's revenue (15.9% per year) is forecast to grow faster than the MY market (5.2% per year).

High Growth Revenue: GBGAQRS's revenue (15.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GBGAQRS's Return on Equity is forecast to be low in 3 years time (9.5%).

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Past Performance

How has Gabungan AQRS Berhad performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-35.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GBGAQRS has high quality earnings.

Growing Profit Margin: GBGAQRS became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: GBGAQRS's earnings have declined by 35.6% per year over the past 5 years.

Accelerating Growth: GBGAQRS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GBGAQRS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Construction industry (-5.1%).

Return on Equity

High ROE: GBGAQRS's Return on Equity (3.4%) is considered low.

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Financial Health

How is Gabungan AQRS Berhad's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GBGAQRS's short term assets (MYR1.3B) exceed its short term liabilities (MYR935.4M).

Long Term Liabilities: GBGAQRS's short term assets (MYR1.3B) exceed its long term liabilities (MYR4.1M).

Debt to Equity History and Analysis

Debt Level: GBGAQRS's net debt to equity ratio (29.7%) is considered satisfactory.

Reducing Debt: GBGAQRS's debt to equity ratio has reduced from 80.9% to 60.9% over the past 5 years.

Debt Coverage: GBGAQRS's debt is not well covered by operating cash flow (0.8%).

Interest Coverage: GBGAQRS's interest payments on its debt are well covered by EBIT (4x coverage).

Balance Sheet

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Dividend

What is Gabungan AQRS Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.94%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate GBGAQRS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GBGAQRS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GBGAQRS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GBGAQRS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: GBGAQRS is not paying a notable dividend for the MY market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as GBGAQRS has not reported any payouts.

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Management

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

5.1yrs

Average management tenure

CEO

Azizan bin Jaafar (53 yo)

6.17yrs

Tenure

RM1,502,250

Compensation

Mr. Azizan bin Jaafar serves as the Managing Director of Dasa Sentosa Sdn Bhd and Zambina Wawasan Sdn Bhd. Mr. bin Jaafar has been the Group Chief Executive Officer at Gabungan AQRS Berhad since January 1,...

CEO Compensation Analysis

Compensation vs Market: Azizan's total compensation ($USD341.30K) is above average for companies of similar size in the MY market ($USD112.87K).

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

Leadership Team

Experienced Management: GBGAQRS's management team is seasoned and experienced (5.1 years average tenure).

Board Members

Experienced Board: GBGAQRS's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.

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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31