Harrisons Holdings (Malaysia) Berhad (KLSE:HARISON) - Share price, News & Analysis

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

HARISON (MYR5.75) is trading below our estimate of [[fair value]] (MYR7.12)

HARISON fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	4/6
Financial Health	6/6
Dividends	5/6

HARISON Stock Overview

Rewards

Trading at 19.2% below our estimate of its fair value

Earnings have grown 15% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (MYR394M)

Harrisons Holdings (Malaysia) Berhad Competitors

Unitrade Industries Berhad

KLSE:UNITRAD

RM406.3m

Samchem Holdings Berhad

KLSE:SAMCHEM

RM413.4m

Hextar Industries Berhad

KLSE:HEXIND

RM413.0m

Engtex Group Berhad

KLSE:ENGTEX

RM265.2m

Price History & Performance

Summary of all time highs, changes and price drops for Harrisons Holdings (Malaysia) Berhad
Historical stock prices
Current Share Price	RM5.75
52 Week High	RM6.23
52 Week Low	RM4.12
Beta	0.56
1 Month Change	-0.86%
3 Month Change	-4.49%
1 Year Change	39.56%
3 Year Change	59.28%
5 Year Change	46.68%
Change since IPO	204.23%

Recent News & Updates

Jul 14

Harrisons Holdings (Malaysia) Berhad (KLSE:HARISON) Is Increasing Its Dividend To MYR0.30

Harrisons Holdings (Malaysia) Berhad ( KLSE:HARISON ) will increase its dividend from last year's comparable payment on...

Jun 30

Harrisons Holdings (Malaysia) Berhad's (KLSE:HARISON) Dividend Will Be Increased To RM0.30

The board of Harrisons Holdings (Malaysia) Berhad ( KLSE:HARISON ) has announced that it will be increasing its...

Shareholder Returns

	HARISON	MY Trade Distributors	MY Market
7D	6.5%	1.8%	-0.2%
1Y	39.6%	34.6%	-3.8%

Return vs Industry: HARISON exceeded the MY Trade Distributors industry which returned 33.5% over the past year.

Return vs Market: HARISON exceeded the MY Market which returned -3.1% over the past year.

Price Volatility

Is HARISON's price volatile compared to industry and market?
HARISON volatility
HARISON Average Weekly Movement	4.4%
Trade Distributors Industry Average Movement	7.3%
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: HARISON is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1918	1,766	Clement Chang	https://www.harrisons.com.my

Harrisons Holdings (Malaysia) Berhad, an investment holding company, markets, sells, and distributes building materials, industrial and agricultural chemical products, liquor products, and consumer goods primarily in Malaysia and Singapore. It operates through Trade and Distribution, Retail, and Shipping and Others segment. The company offers packaged food and beverages, personal care products, pet care products, wines, spirits, beers, and household products; building materials, including cement, steel bars and fabrics/BRC, roofing products, cellulose fiber cement boards, ceramic wall and floor tiles, paints, and other building materials; and industrial chemicals, such as surfactants, softeners, chromic materials, and other chemical materials.

Harrisons Holdings (Malaysia) Berhad Fundamentals Summary

How do Harrisons Holdings (Malaysia) Berhad's earnings and revenue compare to its market cap?
HARISON fundamental statistics
Market Cap	RM393.74m
Earnings (TTM)	RM45.14m
Revenue (TTM)	RM1.98b

8.7x

P/E Ratio

0.2x

P/S Ratio

Is HARISON overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HARISON income statement (TTM)
Revenue	RM1.98b
Cost of Revenue	RM1.76b
Gross Profit	RM222.16m
Other Expenses	RM177.02m
Earnings	RM45.14m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.66
Gross Margin	11.21%
Net Profit Margin	2.28%
Debt/Equity Ratio	19.5%

How did HARISON perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

46%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HARISON. This is calculated by dividing HARISON's market cap by their current preferred multiple.
What is HARISON's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM393.74m

HARISON 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	0.2x
Enterprise Value/EBITDA	5.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

HARISON PE Ratio vs Peers

The above table shows the PE ratio for HARISON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.8x
UNITRAD Unitrade Industries Berhad	9.4x	n/a	RM406.3m
SAMCHEM Samchem Holdings Berhad	5.5x	n/a	RM413.4m
HEXIND Hextar Industries Berhad	68.8x	n/a	RM413.0m
ENGTEX Engtex Group Berhad	3.5x	n/a	RM265.2m
HARISON Harrisons Holdings (Malaysia) Berhad	8.7x	n/a	RM393.7m

Price-To-Earnings vs Peers: HARISON is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (21.8x).

Price to Earnings Ratio vs Industry

How does HARISON's PE Ratio compare vs other companies in the MY Trade Distributors Industry?

Price-To-Earnings vs Industry: HARISON is good value based on its Price-To-Earnings Ratio (8.7x) compared to the MY Trade Distributors industry average (9.3x)

Price to Earnings Ratio vs Fair Ratio

What is HARISON'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.

HARISON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HARISON's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: HARISON (MYR5.75) is trading below our estimate of fair value (MYR7.12)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Future Growth

How is Harrisons Holdings (Malaysia) Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

9.1%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Harrisons Holdings (Malaysia) Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Harrisons Holdings (Malaysia) Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Harrisons Holdings (Malaysia) Berhad performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HARISON has high quality earnings.

Growing Profit Margin: HARISON's current net profit margins (2.3%) are higher than last year (1.8%).

Past Earnings Growth Analysis

Earnings Trend: HARISON's earnings have grown by 15% per year over the past 5 years.

Accelerating Growth: HARISON's earnings growth over the past year (33.1%) exceeds its 5-year average (15% per year).

Earnings vs Industry: HARISON earnings growth over the past year (33.1%) underperformed the Trade Distributors industry 33.1%.

Return on Equity

High ROE: HARISON's Return on Equity (12.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Harrisons Holdings (Malaysia) Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: HARISON's short term assets (MYR629.5M) exceed its short term liabilities (MYR304.9M).

Long Term Liabilities: HARISON's short term assets (MYR629.5M) exceed its long term liabilities (MYR61.6M).

Debt to Equity History and Analysis

Debt Level: HARISON has more cash than its total debt.

Reducing Debt: HARISON's debt to equity ratio has reduced from 50.7% to 19.5% over the past 5 years.

Debt Coverage: HARISON's debt is well covered by operating cash flow (80.7%).

Interest Coverage: HARISON's interest payments on its debt are well covered by EBIT (29.6x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Harrisons Holdings (Malaysia) Berhad current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.22%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HARISON's dividend (5.22%) is higher than the bottom 25% of dividend payers in the MY market (2%).

High Dividend: HARISON's dividend (5.22%) is in the top 25% of dividend payers in the MY market (4.84%)

Stability and Growth of Payments

Stable Dividend: HARISON's dividend payments have been volatile in the past 10 years.

Growing Dividend: HARISON's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (45.5%), HARISON's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.1%), HARISON's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

16.9yrs

Average management tenure

CEO

Clement Chang (71 yo)

24.75yrs

Tenure

RM1,542,000

Compensation

Mr. Kon Sang Chang, also known as Clement, serves as Chief Executive Officer at Harrisons Holdings (Malaysia) Berhad since February 5, 2020 and its Executive Director since August 05, 2019. Mr. Chang serve...

CEO Compensation Analysis

Compensation vs Market: Clement's total compensation ($USD346.18K) is above average for companies of similar size in the MY market ($USD111.82K).

Compensation vs Earnings: Clement's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: HARISON's management team is seasoned and experienced (16.9 years average tenure).

Board Members

Experienced Board: HARISON's board of directors are seasoned and experienced ( 24.5 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.

Data	Last Updated (UTC time)
Company Analysis	2022/08/08 00:00
End of Day Share Price	2022/08/08 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31