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TEXC

Texchem Resources Bhd KLSE:TEXCHEM Stock Report

Last Price

RM2.96

Market Cap

RM350.2m

7D

-0.3%

1Y

246.2%

Updated

07 Aug, 2022

Data

Company Financials +
TEXCHEM fundamental analysis
Snowflake Score
Valuation4/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends3/6

TEXCHEM Stock Overview

Texchem Resources Bhd, an investment holding company, engages in industrial, polymer engineering, food, restaurant, and venture businesses.

Texchem Resources Bhd Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Texchem Resources Bhd
Historical stock prices
Current Share PriceRM2.96
52 Week HighRM3.99
52 Week LowRM0.71
Beta1.25
1 Month Change6.86%
3 Month Change6.09%
1 Year Change246.20%
3 Year Change474.76%
5 Year Change171.56%
Change since IPO81.70%

Recent News & Updates

Jul 22
Texchem Resources Bhd (KLSE:TEXCHEM) Has Some Way To Go To Become A Multi-Bagger

Texchem Resources Bhd (KLSE:TEXCHEM) Has Some Way To Go To Become A Multi-Bagger

If you're looking for a multi-bagger, there's a few things to keep an eye out for. In a perfect world, we'd like to see...

Shareholder Returns

TEXCHEMMY IndustrialsMY Market
7D-0.3%-0.2%0.5%
1Y246.2%2.3%-3.1%

Return vs Industry: TEXCHEM exceeded the MY Industrials industry which returned 2.3% over the past year.

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

Price Volatility

Is TEXCHEM's price volatile compared to industry and market?
TEXCHEM volatility
TEXCHEM Average Weekly Movement10.3%
Industrials Industry Average Movement4.5%
Market Average Movement5.6%
10% most volatile stocks in MY Market11.5%
10% least volatile stocks in MY Market2.8%

Stable Share Price: TEXCHEM is more volatile than 75% of MY stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: TEXCHEM's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

FoundedEmployeesCEOWebsite
19732,799Kee Yaphttps://texchemgroup.com

Texchem Resources Bhd, an investment holding company, engages in industrial, polymer engineering, food, restaurant, and venture businesses. The company offers plastic resins, rubber/latex chemicals, PVC and coating/ink resins and additives, adhesive chemicals, food ingredients, personal care and pharmaceutical additives, dyestuffs and textile auxiliaries, hand sanitizers and surface disinfectants, 3-ply face masks, and face shields. It also provides polymer solutions and designs to the data storage, semiconductor, consumer electronics and electrical, telecommunications, and medical devices/life science industries.

Texchem Resources Bhd Fundamentals Summary

How do Texchem Resources Bhd's earnings and revenue compare to its market cap?
TEXCHEM fundamental statistics
Market CapRM350.21m
Earnings (TTM)RM31.86m
Revenue (TTM)RM1.13b

11.0x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TEXCHEM income statement (TTM)
RevenueRM1.13b
Cost of RevenueRM886.90m
Gross ProfitRM241.13m
Other ExpensesRM209.27m
EarningsRM31.86m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.27
Gross Margin21.38%
Net Profit Margin2.82%
Debt/Equity Ratio52.0%

How did TEXCHEM perform over the long term?

See historical performance and comparison

Dividends

3.4%

Current Dividend Yield

38%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 TEXCHEM?

Other financial metrics that can be useful for relative valuation.

TEXCHEM 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/Revenue0.5x
Enterprise Value/EBITDA9.3x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

TEXCHEM PE Ratio vs Peers
The above table shows the PE ratio for TEXCHEM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.7x
KFIMA Kumpulan Fima Berhad
6xn/aRM615.7m
BSTEAD Boustead Holdings Berhad
3.8xn/aRM1.6b
HLIND Hong Leong Industries Berhad
16.2xn/aRM2.9b
SUNWAY Sunway Berhad
20.9x15.3%RM8.1b
TEXCHEM Texchem Resources Bhd
11x15.7%RM350.2m

Price-To-Earnings vs Peers: TEXCHEM is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (11.7x).


Price to Earnings Ratio vs Industry

How does TEXCHEM's PE Ratio compare vs other companies in the Asian Industrials Industry?

Price-To-Earnings vs Industry: TEXCHEM is good value based on its Price-To-Earnings Ratio (11x) compared to the MY Industrials industry average (15.4x)


Price to Earnings Ratio vs Fair Ratio

What is TEXCHEM'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.

TEXCHEM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: TEXCHEM is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).


Share Price vs Fair Value

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

Below Fair Value: TEXCHEM (MYR2.96) is trading below our estimate of fair value (MYR3.69)

Significantly Below Fair Value: TEXCHEM 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.


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Future Growth

How is Texchem Resources Bhd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


15.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TEXCHEM's forecast earnings growth (15.7% per year) is above the savings rate (3.6%).

Earnings vs Market: TEXCHEM's earnings (15.7% per year) are forecast to grow faster than the MY market (10.2% per year).

High Growth Earnings: TEXCHEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: TEXCHEM's revenue (5.5% per year) is forecast to grow faster than the MY market (5.1% per year).

High Growth Revenue: TEXCHEM'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: TEXCHEM's Return on Equity is forecast to be low in 3 years time (15.6%).


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Past Performance

How has Texchem Resources Bhd 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


39.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: TEXCHEM has a large one-off gain of MYR6.8M impacting its March 31 2022 financial results.

Growing Profit Margin: TEXCHEM's current net profit margins (2.8%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: TEXCHEM's earnings have grown significantly by 39.8% per year over the past 5 years.

Accelerating Growth: TEXCHEM's earnings growth over the past year (184.3%) exceeds its 5-year average (39.8% per year).

Earnings vs Industry: TEXCHEM earnings growth over the past year (184.3%) exceeded the Industrials industry 26.2%.


Return on Equity

High ROE: TEXCHEM's Return on Equity (10.7%) is considered low.


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Financial Health

How is Texchem Resources Bhd'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: TEXCHEM's short term assets (MYR398.2M) exceed its short term liabilities (MYR321.3M).

Long Term Liabilities: TEXCHEM's short term assets (MYR398.2M) exceed its long term liabilities (MYR155.2M).


Debt to Equity History and Analysis

Debt Level: TEXCHEM's net debt to equity ratio (19.8%) is considered satisfactory.

Reducing Debt: TEXCHEM's debt to equity ratio has reduced from 52.7% to 52% over the past 5 years.

Debt Coverage: TEXCHEM's debt is well covered by operating cash flow (33.4%).

Interest Coverage: TEXCHEM's interest payments on its debt are well covered by EBIT (4.2x coverage).


Balance Sheet


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Dividend

What is Texchem Resources Bhd current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.38%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: TEXCHEM's dividend (3.38%) is higher than the bottom 25% of dividend payers in the MY market (2%).

High Dividend: TEXCHEM's dividend (3.38%) is low compared to the top 25% of dividend payers in the MY market (4.84%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (37.7%), TEXCHEM's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29%), TEXCHEM's dividend payments are well covered by cash flows.


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Management

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

2.3yrs

Average management tenure


CEO

Kee Yap (58 yo)

4.42yrs

Tenure

RM777,000

Compensation

Mr. Kee Keong Yap has been President and Chief Operating Officer of Texchem-Pack (M) Bhd., a subsidiary of Texchem Resources Bhd since 2005. Mr. Yap has been the Chief Executive Officer of Texchem-Pack Hol...


CEO Compensation Analysis

Compensation vs Market: Kee's total compensation ($USD174.44K) is above average for companies of similar size in the MY market ($USD111.82K).

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


Leadership Team

Experienced Management: TEXCHEM's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: TEXCHEM's board of directors are seasoned and experienced ( 10.3 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Texchem Resources Bhd's employee growth, exchange listings and data sources


Key Information

  • Name: Texchem Resources Bhd
  • Ticker: TEXCHEM
  • Exchange: KLSE
  • Founded: 1973
  • Industry: Industrial Conglomerates
  • Sector: Capital Goods
  • Implied Market Cap: RM350.215m
  • Shares outstanding: 118.32m
  • Website: https://texchemgroup.com

Number of Employees


Location

  • Texchem Resources Bhd
  • Menara Boustead Penang
  • Level 18
  • Penang
  • Pulau Pinang
  • 10050
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/07 00:00
End of Day Share Price2022/08/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.