Resintech Berhad (KLSE:RESINTC) - Share price, News & Analysis

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

RESINTC (MYR0.84) is trading above our estimate of [[fair value]] (MYR0.28)

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

RESINTC Stock Overview

Resintech Berhad, an investment holding company, designs, manufactures, trades, and markets plastic pipes, water tanks, and fittings in Malaysia, Indonesia, Cambodia, Singapore, and internationally.

Risk Analysis

Earnings have declined by 2.6% per year over past 5 years

Dividend of 2.98% is not well covered by earnings

Large one-off items impacting financial results

Shareholders have been diluted in the past year

+ 1 more risk

Resintech Berhad Competitors

Kumpulan H & L High-Tech Berhad

KLSE:HIGHTEC

RM134.7m

Kein Hing International Berhad

KLSE:KEINHIN

RM105.6m

HPMT Holdings Berhad

KLSE:HPMT

RM149.5m

Flexidynamic Holdings Berhad

KLSE:FLEXI

RM81.1m

Price History & Performance

Summary of all time highs, changes and price drops for Resintech Berhad
Historical stock prices
Current Share Price	RM0.84
52 Week High	RM1.22
52 Week Low	RM0.60
Beta	0.92
1 Month Change	29.23%
3 Month Change	-7.69%
1 Year Change	30.23%
3 Year Change	194.74%
5 Year Change	69.70%
Change since IPO	37.55%

Recent News & Updates

Aug 02

Resintech Berhad (KLSE:RESINTC) Takes On Some Risk With Its Use Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	RESINTC	MY Machinery	MY Market
7D	8.4%	4.6%	1.7%
1Y	30.2%	-17.4%	-4.0%

Return vs Industry: RESINTC exceeded the MY Machinery industry which returned -16.9% over the past year.

Return vs Market: RESINTC exceeded the MY Market which returned -3.7% over the past year.

Price Volatility

Is RESINTC's price volatile compared to industry and market?
RESINTC volatility
RESINTC Average Weekly Movement	6.3%
Machinery Industry Average Movement	6.7%
Market Average Movement	5.6%
10% most volatile stocks in MY Market	11.8%
10% least volatile stocks in MY Market	2.7%

Stable Share Price: RESINTC is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RESINTC's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1978	n/a	Kim Poo Teh	https://www.resintechmalaysia.my

Resintech Berhad, an investment holding company, designs, manufactures, trades, and markets plastic pipes, water tanks, and fittings in Malaysia, Indonesia, Cambodia, Singapore, and internationally. It offers polyethylene, polypropylene, acrylonitrile-butadiene-styrene pipes, tanks, and fittings; and HDPE corrugated pipes and fittings for sewerage discharge application, drainage and irrigation, underground power cable, and telecommunication cable protector. The company also provides HDPE pipes for municipal water pipelines; septic tanks; domestic water tanks for household use; UPVC pipes which are used to discharge the unwanted water and sewerage from house; PVC rain gutters for draining excess rain water from house; road safety barriers; rainwater harvesting tanks for storing the rain water from the roof top; and fittings for various types of joints for plastics pipes.

Resintech Berhad Fundamentals Summary

How do Resintech Berhad's earnings and revenue compare to its market cap?
RESINTC fundamental statistics
Market Cap	RM122.48m
Earnings (TTM)	RM5.11m
Revenue (TTM)	RM80.59m

24.0x

P/E Ratio

1.5x

P/S Ratio

Is RESINTC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RESINTC income statement (TTM)
Revenue	RM80.59m
Cost of Revenue	RM63.70m
Gross Profit	RM16.88m
Other Expenses	RM11.77m
Earnings	RM5.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.035
Gross Margin	20.95%
Net Profit Margin	6.34%
Debt/Equity Ratio	26.4%

How did RESINTC perform over the long term?

See historical performance and comparison

Dividends

3.0%

Current Dividend Yield

68%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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 RESINTC?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RESINTC. This is calculated by dividing RESINTC's market cap by their current preferred multiple.
What is RESINTC's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM122.48m

RESINTC 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	1.8x
Enterprise Value/EBITDA	13.1x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

RESINTC PE Ratio vs Peers

The above table shows the PE ratio for RESINTC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.8x
HIGHTEC Kumpulan H & L High-Tech Berhad	7.8x	n/a	RM134.7m
KEINHIN Kein Hing International Berhad	6.7x	n/a	RM105.6m
HPMT HPMT Holdings Berhad	11.3x	7.6%	RM149.5m
FLEXI Flexidynamic Holdings Berhad	17.5x	n/a	RM81.1m
RESINTC Resintech Berhad	24x	n/a	RM122.5m

Price-To-Earnings vs Peers: RESINTC is expensive based on its Price-To-Earnings Ratio (24x) compared to the peer average (10.8x).

Price to Earnings Ratio vs Industry

How does RESINTC's PE Ratio compare vs other companies in the MY Machinery Industry?

Price-To-Earnings vs Industry: RESINTC is expensive based on its Price-To-Earnings Ratio (24x) compared to the MY Machinery industry average (17.5x)

Price to Earnings Ratio vs Fair Ratio

What is RESINTC'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.

RESINTC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: RESINTC (MYR0.84) is trading above our estimate of fair value (MYR0.28)

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

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.

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Future Growth

How is Resintech 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

17.6%

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 Resintech 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.

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Examine Resintech Berhad's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Resintech Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-2.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RESINTC has a large one-off gain of MYR2.5M impacting its March 31 2022 financial results.

Growing Profit Margin: RESINTC's current net profit margins (6.3%) are lower than last year (7.4%).

Past Earnings Growth Analysis

Earnings Trend: RESINTC's earnings have declined by 2.6% per year over the past 5 years.

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

Earnings vs Industry: RESINTC had negative earnings growth (-12.9%) over the past year, making it difficult to compare to the Machinery industry average (31%).

Return on Equity

High ROE: RESINTC's Return on Equity (2.9%) is considered low.

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Financial Health

How is Resintech Berhad's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: RESINTC's short term assets (MYR87.6M) exceed its short term liabilities (MYR34.5M).

Long Term Liabilities: RESINTC's short term assets (MYR87.6M) exceed its long term liabilities (MYR42.8M).

Debt to Equity History and Analysis

Debt Level: RESINTC's net debt to equity ratio (12.1%) is considered satisfactory.

Reducing Debt: RESINTC's debt to equity ratio has increased from 13% to 26.4% over the past 5 years.

Debt Coverage: RESINTC's debt is not well covered by operating cash flow (12%).

Interest Coverage: RESINTC's interest payments on its debt are well covered by EBIT (6.6x coverage).

Balance Sheet

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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

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

2.98%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RESINTC's dividend (2.98%) is higher than the bottom 25% of dividend payers in the MY market (2.01%).

High Dividend: RESINTC's dividend (2.98%) is low compared to the top 25% of dividend payers in the MY market (4.8%).

Stability and Growth of Payments

Stable Dividend: RESINTC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RESINTC has only been paying a dividend for 7 years, and since then payments have fallen.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.2%), RESINTC's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: RESINTC is paying a dividend but the company has no free cash flows.

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Management

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

15.3yrs

Average board tenure

CEO

Kim Poo Teh (71 yo)

no data

Tenure

RM695,392

Compensation

Dr. Kim Poo Teh, DSSA, PJK, JP, DipM., MBA, MCIM Founded Resintech Bhd and serves as its Managing Director. He possesses in-depth knowledge and vast experience in the plastics industry and has fully built...

CEO Compensation Analysis

Compensation vs Market: Kim Poo's total compensation ($USD155.71K) is above average for companies of similar size in the MY market ($USD111.51K).

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

Board Members

Experienced Board: RESINTC's board of directors are seasoned and experienced ( 15.3 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 been diluted in the past year, with total shares outstanding growing by 6.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31