HE Group Berhad

KLSE:HEGROUP Stock Report

Market Cap: RM 149.6m

HE Group Berhad Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

RM 0.4
Fair Value
14.4% undervalued intrinsic discount
2
Number of Analysts

Below Fair Value: HEGROUP (MYR0.34) is trading below our estimate of fair value (MYR0.4)

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

Key Valuation Metric

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

Key metric: As HEGROUP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HEGROUP. This is calculated by dividing HEGROUP's market cap by their current earnings.
What is HEGROUP's PE Ratio?
PE Ratio11.6x
EarningsRM 12.84m
Market CapRM 149.60m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HEGROUP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.8x
DKLS DKLS Industries Berhad
8.3xn/aRM 160.4m
HSSEB HSS Engineers Berhad
7.9x38.02%RM 190.7m
AWC AWC Berhad
8.4x11.59%RM 191.7m
ICENTS iCents Group Holdings Berhad
30.7x35.13%RM 205.0m
HEGROUP HE Group Berhad
11.6x17.79%RM 149.6m

Price-To-Earnings vs Peers: HEGROUP is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (13.8x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PRTASCO Protasco Berhad
2.2xn/aUS$29.30m
ZECON Zecon Berhad
2xn/aUS$19.34m
INGENIEU Ingenieur Gudang Berhad
1.6xn/aUS$9.22m
TXCD Txcd Berhad
0.3xn/aUS$6.82m
No more companies available in this PE range
HEGROUP 11.6xIndustry Avg. 12.3xNo. of Companies13PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HEGROUP is good value based on its Price-To-Earnings Ratio (11.6x) compared to the MY Construction industry average (12.3x).

Price to Earnings Ratio vs Fair Ratio

What is HEGROUP'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.

HEGROUP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio14.7x

Price-To-Earnings vs Fair Ratio: HEGROUP is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (14.7x).

Analyst Price Targets

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

The above table shows the analyst HEGROUP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.34
RM 0.47
+38.24%
2.13%RM 0.48RM 0.46n/a2
Nov ’26RM 0.38
RM 0.47
+23.68%
2.13%RM 0.48RM 0.46n/a2
Oct ’26RM 0.43
RM 0.47
+8.05%
2.13%RM 0.48RM 0.46n/a2
Sep ’26RM 0.39
RM 0.42
+8.97%
12.94%RM 0.48RM 0.37n/a2
RM 0.47
Fair Value
27.7% undervalued intrinsic discount
2
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/12/06 03:30
End of Day Share Price 2025/12/05 00:00
Earnings2025/09/30
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

HE Group Berhad is covered by 2 analysts. 2 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Amirah AzmiMaybank Research Pte. Ltd.
Pei ChongPublic Investment Bank Berhad