Asia File Corporation Bhd (KLSE:ASIAFLE) - Share price, News & Analysis

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

ASIAFLE (MYR1.9) is trading above our estimate of [[fair value]] (MYR1)

ASIAFLE fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	1/6
Financial Health	6/6
Dividends	0/6

ASIAFLE Stock Overview

Asia File Corporation Bhd., an investment holding company, manufactures and markets filing and stationery products in Malaysia.

Rewards

Price-To-Earnings ratio (8.5x) is below the MY market (14.1x)

Risk Analysis

Earnings have declined by 5.7% per year over past 5 years

Does not have a meaningful market cap (MYR370M)

Asia File Corporation Bhd Competitors

Pelikan International Corporation Berhad

KLSE:PELIKAN

RM141.8m

TAFI Industries Berhad

KLSE:TAFI

RM185.9m

MTAG Group Berhad

KLSE:MTAG

RM317.0m

Fima Corporation Berhad

KLSE:FIMACOR

RM498.5m

Price History & Performance

Summary of all time highs, changes and price drops for Asia File Corporation Bhd
Historical stock prices
Current Share Price	RM1.90
52 Week High	RM2.84
52 Week Low	RM1.70
Beta	0.55
1 Month Change	-5.47%
3 Month Change	-7.32%
1 Year Change	-20.50%
3 Year Change	-21.16%
5 Year Change	-40.63%
Change since IPO	26.54%

Recent News & Updates

Jun 14

Asia File Corporation Bhd (KLSE:ASIAFLE) May Have Issues Allocating Its Capital

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Firstly, we'll want...

Shareholder Returns

	ASIAFLE	MY Commercial Services	MY Market
7D	8.6%	-0.08%	1.2%
1Y	-20.5%	-18.5%	-6.5%

Return vs Industry: ASIAFLE underperformed the MY Commercial Services industry which returned -15.2% over the past year.

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

Price Volatility

Is ASIAFLE's price volatile compared to industry and market?
ASIAFLE volatility
ASIAFLE Average Weekly Movement	4.3%
Commercial Services Industry Average Movement	6.4%
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: ASIAFLE is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.

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

About the Company

Founded	Employees	CEO	Website
1994	n/a	Soon Lim	https://www.asia-file.com

Asia File Corporation Bhd., an investment holding company, manufactures and markets filing and stationery products in Malaysia. The company offers plastic folders, sheet protectors, flat files, filing/storage boxes, lever arch files, ring/presentation binders, clipboards and clip folders, indexes and dividers, Manila files and folders, suspensions files, labels and paper products, desk and office accessories, document presentation products, ring file/binders, envelopes, marker and whiteboard accessories, and other office stationeries. It also manufactures and sells colored paper and boards for filing, educational, and other specialty markets.

Asia File Corporation Bhd Fundamentals Summary

How do Asia File Corporation Bhd's earnings and revenue compare to its market cap?
ASIAFLE fundamental statistics
Market Cap	RM370.04m
Earnings (TTM)	RM43.40m
Revenue (TTM)	RM323.02m

8.5x

P/E Ratio

1.1x

P/S Ratio

Is ASIAFLE overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ASIAFLE income statement (TTM)
Revenue	RM323.02m
Cost of Revenue	RM290.14m
Gross Profit	RM32.88m
Other Expenses	-RM10.52m
Earnings	RM43.40m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.22
Gross Margin	10.18%
Net Profit Margin	13.44%
Debt/Equity Ratio	0.4%

How did ASIAFLE perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

9%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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 ASIAFLE?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ASIAFLE. This is calculated by dividing ASIAFLE's market cap by their current preferred multiple.
What is ASIAFLE's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM370.04m

ASIAFLE 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	0.5x
Enterprise Value/EBITDA	4.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

ASIAFLE PE Ratio vs Peers

The above table shows the PE ratio for ASIAFLE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.2x
PELIKAN Pelikan International Corporation Berhad	1.5x	n/a	RM141.8m
TAFI TAFI Industries Berhad	40.3x	n/a	RM185.9m
MTAG MTAG Group Berhad	10.8x	24.8%	RM317.0m
FIMACOR Fima Corporation Berhad	8.2x	n/a	RM498.5m
ASIAFLE Asia File Corporation Bhd	8.5x	n/a	RM370.0m

Forward PE

Price-To-Earnings vs Peers: ASIAFLE is good value based on its Price-To-Earnings Ratio (8.5x) compared to the peer average (15.2x).

Price to Earnings Ratio vs Industry

How does ASIAFLE's PE Ratio compare vs other companies in the Asian Commercial Services Industry?

Price-To-Earnings vs Industry: ASIAFLE is good value based on its Price-To-Earnings Ratio (8.5x) compared to the MY Commercial Services industry average (10.9x)

Price to Earnings Ratio vs Fair Ratio

What is ASIAFLE'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.

ASIAFLE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.5x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: ASIAFLE (MYR1.9) is trading above our estimate of fair value (MYR1)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ASIAFLE's PEG Ratio to determine if it is good value.

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Future Growth

How is Asia File Corporation Bhd forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

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

1.0%

Forecasted annual revenue growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ASIAFLE's forecast earnings growth is above the savings rate (3.6%).

Earnings vs Market: Insufficient data to determine if ASIAFLE's earnings are forecast to grow faster than the MY market

High Growth Earnings: Insufficient data to determine if ASIAFLE's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ASIAFLE's revenue (1% per year) is forecast to grow slower than the MY market (5.2% per year).

High Growth Revenue: ASIAFLE's revenue (1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if ASIAFLE's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Asia File Corporation Bhd performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

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

-5.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ASIAFLE has high quality earnings.

Growing Profit Margin: ASIAFLE's current net profit margins (13.4%) are lower than last year (18.1%).

Past Earnings Growth Analysis

Earnings Trend: ASIAFLE's earnings have declined by 5.7% per year over the past 5 years.

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

Earnings vs Industry: ASIAFLE had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the Commercial Services industry average (29.9%).

Return on Equity

High ROE: ASIAFLE's Return on Equity (6%) is considered low.

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Financial Health

How is Asia File Corporation 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: ASIAFLE's short term assets (MYR391.9M) exceed its short term liabilities (MYR43.5M).

Long Term Liabilities: ASIAFLE's short term assets (MYR391.9M) exceed its long term liabilities (MYR17.0M).

Debt to Equity History and Analysis

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

Reducing Debt: ASIAFLE's debt to equity ratio has reduced from 5.2% to 0.4% over the past 5 years.

Debt Coverage: ASIAFLE's debt is well covered by operating cash flow (514.4%).

Interest Coverage: ASIAFLE earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Asia File Corporation Bhd 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

1.05%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ASIAFLE's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (2.11%).

High Dividend: ASIAFLE's dividend (1.05%) is low compared to the top 25% of dividend payers in the MY market (4.87%).

Stability and Growth of Payments

Stable Dividend: ASIAFLE is not paying a notable dividend for the MY market, therefore no need to check if payments are stable.

Growing Dividend: ASIAFLE is not paying a notable dividend for the MY market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: ASIAFLE is not paying a notable dividend for the MY market.

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Management

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

15.3yrs

Average management tenure

CEO

Soon Lim (64 yo)

no data

Tenure

RM1,565,000

Compensation

Mr. Lim Soon Huat serves as the Chief Executive Officer of Asia File Products Sdn. Bhd. Mr. Lim has been the Non-Independent Executive Chairman of Asia File Corporation Bhd., since July 16, 2001 and serves...

CEO Compensation Analysis

Compensation vs Market: Soon's total compensation ($USD355.56K) is above average for companies of similar size in the MY market ($USD112.87K).

Compensation vs Earnings: Soon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: ASIAFLE's management team is seasoned and experienced (15.3 years average tenure).

Board Members

Experienced Board: ASIAFLE's board of directors are seasoned and experienced ( 16.6 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	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31