Buy Or Sell Opportunity • Jun 16
Now 21% overvalued Over the last 90 days, the stock has fallen 9.1% to RM0.30. The fair value is estimated to be RM0.25, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 28%. Reported Earnings • May 31
First quarter 2026 earnings released: EPS: RM0.008 (vs RM0.008 in 1Q 2025) First quarter 2026 results: EPS: RM0.008 (in line with 1Q 2025). Revenue: RM27.8m (down 15% from 1Q 2025). Net income: RM1.83m (down 9.0% from 1Q 2025). Profit margin: 6.6% (up from 6.1% in 1Q 2025). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 16% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
Lee Swee Kiat Group Berhad, Annual General Meeting, May 29, 2026 Lee Swee Kiat Group Berhad, Annual General Meeting, May 29, 2026, at 10:00 Singapore Standard Time. Location: function room 2, setia city convention centre, no. 1, jalan setia dagang ag u13/ag, setia alam, seksyen 13, 40170 shah alam, selangor darul ehsan, Malaysia Declared Dividend • Mar 05
Dividend reduced to RM0.015 Dividend of RM0.015 is 36% lower than last year. Ex-date: 17th March 2026 Payment date: 30th March 2026 Dividend yield will be 4.4%, which is lower than the industry average of 4.7%. Sustainability & Growth Dividend is covered by both earnings (73% earnings payout ratio) and cash flows (33% cash payout ratio). The dividend has increased by an average of 9.4% per year over the past 9 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 19% to shift the payout ratio to a potentially unsustainable range, which is more than the 4.7% EPS decline seen over the last 5 years. Reported Earnings • Mar 02
Full year 2025 earnings released: EPS: RM0.021 (vs RM0.038 in FY 2024) Full year 2025 results: EPS: RM0.021 (down from RM0.038 in FY 2024). Revenue: RM126.1m (down 7.5% from FY 2024). Net income: RM5.19m (down 45% from FY 2024). Profit margin: 4.1% (down from 6.9% in FY 2024). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Reported Earnings • Nov 27
Third quarter 2025 earnings released: EPS: RM0.003 (vs RM0.004 in 3Q 2024) Third quarter 2025 results: EPS: RM0.003 (down from RM0.004 in 3Q 2024). Revenue: RM29.9m (up 6.0% from 3Q 2024). Net income: RM817.0k (down 18% from 3Q 2024). Profit margin: 2.7% (down from 3.6% in 3Q 2024). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. New Risk • Nov 27
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 96% Cash payout ratio: 94% Dividend yield: 4.8% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 96% Cash payout ratio: 94% Minor Risks Profit margins are more than 30% lower than last year (4.5% net profit margin). Market cap is less than US$100m (RM123.3m market cap, or US$29.9m). New Risk • Aug 29
New minor risk - Dividend sustainability The dividend is not well covered by earnings. Payout ratio: 94% Dividend yield: 4.6% This is considered a minor risk. Companies that pay out too much of their earnings are at risk of having to reduce or cut their dividend in future. If earnings growth slows or earnings fall, then there may not be enough earnings to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. However, this risk is mitigated by the fact the dividend is covered by cash flows. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (94% payout ratio). Profit margins are more than 30% lower than last year (4.7% net profit margin). Market cap is less than US$100m (RM129.6m market cap, or US$30.7m). Reported Earnings • May 30
First quarter 2025 earnings released: EPS: RM0.008 (vs RM0.016 in 1Q 2024) First quarter 2025 results: EPS: RM0.008 (down from RM0.016 in 1Q 2024). Revenue: RM32.7m (down 9.3% from 1Q 2024). Net income: RM2.01m (down 47% from 1Q 2024). Profit margin: 6.1% (down from 11% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 9.2% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year whereas the company’s share price has fallen by 1% per year. Announcement • Apr 28
Lee Swee Kiat Group Berhad, Annual General Meeting, May 28, 2025 Lee Swee Kiat Group Berhad, Annual General Meeting, May 28, 2025, at 10:00 Singapore Standard Time. Location: function room 2, setia city convention centre, no. 1, jalan setia dagang ag u13/ag,, setia alam, seksyen 13, 40170 shah alam, selangor darul ehsan, Malaysia Declared Dividend • Mar 03
Dividend of RM0.024 announced Shareholders will receive a dividend of RM0.024. Ex-date: 14th March 2025 Payment date: 28th March 2025 Dividend yield will be 4.7%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (63% earnings payout ratio) and cash flows (73% cash payout ratio). The dividend has increased by an average of 17% per year over the past 8 years and payments have been stable during that time. EPS is expected to grow by 54% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 27
Full year 2024 earnings released: EPS: RM0.038 (vs RM0.056 in FY 2023) Full year 2024 results: EPS: RM0.038 (down from RM0.056 in FY 2023). Revenue: RM136.8m (up 7.1% from FY 2023). Net income: RM9.46m (down 31% from FY 2023). Profit margin: 6.9% (down from 11% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 4.6% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Announcement • Feb 27
Lee Swee Kiat Group Berhad Declares Interim Dividend in Respect of the Financial Year Ended 31 December 2024 Lee Swee Kiat Group Berhad declare an interim dividend of 2.35 sen per ordinary share under the single-tier system in respect of the financial year ended 31 December 2024. The dividend entitlement date and payment date will be determined and announced later. Major Estimate Revision • Dec 04
Consensus EPS estimates fall by 38% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM139.7m to RM136.8m. EPS estimate also fell from RM0.07 per share to RM0.043 per share. Net income forecast to shrink 20% next year vs 22% growth forecast for Consumer Durables industry in Malaysia . Consensus price target down from RM0.74 to RM0.58. Share price was steady at RM0.53 over the past week. Board Change • Dec 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 3 highly experienced directors. Independent & Non Executive Director Fong Ng was the last director to join the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Insufficient board refreshment. Reported Earnings • Nov 28
Third quarter 2024 earnings released: EPS: RM0.004 (vs RM0.014 in 3Q 2023) Third quarter 2024 results: EPS: RM0.004 (down from RM0.014 in 3Q 2023). Revenue: RM28.2m (down 14% from 3Q 2023). Net income: RM1.00m (down 71% from 3Q 2023). Profit margin: 3.6% (down from 11% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Price Target Changed • Oct 14
Price target decreased by 14% to RM0.74 Down from RM0.86, the current price target is an average from 2 analysts. New target price is 32% above last closing price of RM0.56. Stock is up 12% over the past year. The company is forecast to post earnings per share of RM0.07 for next year compared to RM0.056 last year. Announcement • Sep 20
Lee Swee Kiat Group Berhad Announces Resignation of Wong Peir Chyun as Company Secretary Lee Swee Kiat Group Berhad announced resignation of Wong Peir Chyun as Company Secretary. Date of Change: 20 September 2024. Major Estimate Revision • Sep 03
Consensus revenue estimates decrease by 19%, EPS upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from RM180.2m to RM146.7m. EPS estimate increased from RM0.064 to RM0.073 per share. Net income forecast to grow 27% next year vs 19% growth forecast for Consumer Durables industry in Malaysia. Consensus price target up from RM0.84 to RM0.86. Share price fell 2.8% to RM0.52 over the past week. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: RM0.008 (vs RM0.011 in 2Q 2023) Second quarter 2024 results: EPS: RM0.008 (down from RM0.011 in 2Q 2023). Revenue: RM31.1m (flat on 2Q 2023). Net income: RM2.04m (down 23% from 2Q 2023). Profit margin: 6.6% (down from 8.5% in 2Q 2023). Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Price Target Changed • Aug 28
Price target increased by 9.0% to RM0.88 Up from RM0.81, the current price target is an average from 3 analysts. New target price is 72% above last closing price of RM0.52. Stock is up 1.6% over the past year. The company is forecast to post earnings per share of RM0.073 for next year compared to RM0.056 last year. Announcement • May 31
Lee Swee Kiat Group Berhad Announces the Retirement of Seow Nyoke Yoong as Independent and Non Executive Member of Audit Committee Lee Swee Kiat Group Berhad announced the retirement of Miss. Seow Nyoke Yoong, age 63, as Independent and Non Executive Member of Audit Committee, effective from 27 May 2024. Composition of Audit Committee: (Name and Directorate of members after change) Chairman: Wong Yoke San (Senior Independent Non-Executive Director) Members: Ng Fong Fong (Independent Non-Executive Director) Lee Kong Hooi (Non-Independent Non-Executive Director). Reported Earnings • May 28
First quarter 2024 earnings released: EPS: RM0.024 (vs RM0.021 in 1Q 2023) First quarter 2024 results: EPS: RM0.024 (up from RM0.021 in 1Q 2023). Revenue: RM36.0m (up 21% from 1Q 2023). Net income: RM3.79m (up 10% from 1Q 2023). Profit margin: 11% (down from 12% in 1Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Apr 28
Lee Swee Kiat Group Berhad, Annual General Meeting, May 27, 2024 Lee Swee Kiat Group Berhad, Annual General Meeting, May 27, 2024, at 11:00 Singapore Standard Time. Location: Function Room 7, Setia City Convention Centre, No. 1, Jalan Setia Dagang AG U13/AG Setia Alam, Seksyen 13, 40170 Shah Alam SELANGOR DARUL EHSAN Malaysia Agenda: To consider proposed bonus issue of up to 83,907,852 new ordinary shares. New Risk • Apr 09
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 3.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Shareholders have been diluted in the past year (3.9% increase in shares outstanding). Market cap is less than US$100m (RM151.8m market cap, or US$32.0m). Upcoming Dividend • Mar 15
Upcoming dividend of RM0.035 per share Eligible shareholders must have bought the stock before 22 March 2024. Payment date: 05 April 2024. Payout ratio is a comfortable 41% and this is well supported by cash flows. Trailing yield: 3.4%. Lower than top quartile of Malaysian dividend payers (4.7%). Lower than average of industry peers (5.0%). Declared Dividend • Mar 10
Dividend of RM0.035 announced Shareholders will receive a dividend of RM0.035. Ex-date: 22nd March 2024 Payment date: 5th April 2024 Dividend yield will be 3.3%, which is lower than the industry average of 4.7%. Sustainability & Growth Dividend is well covered by both earnings (41% earnings payout ratio) and cash flows (42% cash payout ratio). The dividend has increased by an average of 20% per year over the past 7 years and payments have been stable during that time. EPS is expected to grow by 63% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Feb 28
Lee Swee Kiat Group Berhad Declares an Interim Dividend for the Financial Year Ended 31 December 2023 The Board of Directors of Lee Swee Kiat Group Berhad declared an interim dividend of 3.5 sen per ordinary share under the single-tier system in respect of the financial year ended 31 December 2023. Price Target Changed • Feb 28
Price target increased by 12% to RM1.29 Up from RM1.15, the current price target is an average from 3 analysts. New target price is 17% above last closing price of RM1.11. Stock is up 41% over the past year. The company is forecast to post earnings per share of RM0.10 for next year compared to RM0.085 last year. Reported Earnings • Feb 28
Full year 2023 earnings released: EPS: RM0.085 (vs RM0.067 in FY 2022) Full year 2023 results: EPS: RM0.085 (up from RM0.067 in FY 2022). Revenue: RM127.7m (down 1.0% from FY 2022). Net income: RM13.7m (up 26% from FY 2022). Profit margin: 11% (up from 8.4% in FY 2022). The increase in margin was driven by lower expenses. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Feb 09
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to RM1.11, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 12x in the Consumer Durables industry in Malaysia. Total returns to shareholders of 38% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM0.57 per share. Announcement • Nov 29
Lee Swee Kiat Group Berhad Announces Retirement of Lee Kong Yam as Executive Director, Effective 30 November 2023 Lee Swee Kiat Group Berhad announced the retirement of Mr. Lee Kong Yam, aged 56, as Executive Director, effective 30 November 2023. Reported Earnings • Nov 28
Third quarter 2023 earnings released: EPS: RM0.021 (vs RM0.015 in 3Q 2022) Third quarter 2023 results: EPS: RM0.021 (up from RM0.015 in 3Q 2022). Revenue: RM32.7m (up 3.1% from 3Q 2022). Net income: RM3.45m (up 42% from 3Q 2022). Profit margin: 11% (up from 7.7% in 3Q 2022). Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 9.0% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has only increased by 3% per year, which means it is significantly lagging earnings growth. Announcement • Nov 21
Lee Swee Kiat Group Berhad Announces the Resignation of Wong Wai Foong as Company Secretary Lee Swee Kiat Group Berhad announced the resignation of Wong Wai Foong as Company Secretary, effective November 20, 2023. Reported Earnings • Aug 22
Second quarter 2023 earnings released: EPS: RM0.016 (vs RM0.019 in 2Q 2022) Second quarter 2023 results: EPS: RM0.016 (down from RM0.019 in 2Q 2022). Revenue: RM31.1m (flat on 2Q 2022). Net income: RM2.64m (down 15% from 2Q 2022). Profit margin: 8.5% (down from 9.9% in 2Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 16% per year and the company’s share price has also increased by 16% per year. Announcement • Aug 03
Lee Swee Kiat Group Berhad Appoints Yeng Shi Mei as Company Secretary Lee Swee Kiat Group Berhad appointed Yeng Shi Mei as Company Secretary. Date Of Change 01 Aug. 2023. Price Target Changed • Jun 13
Price target increased by 10% to RM1.07 Up from RM0.97, the current price target is an average from 2 analysts. New target price is 40% above last closing price of RM0.76. Stock is up 2.7% over the past year. The company is forecast to post earnings per share of RM0.085 for next year compared to RM0.067 last year. Reported Earnings • Jun 03
First quarter 2023 earnings released: EPS: RM0.021 (vs RM0.023 in 1Q 2022) First quarter 2023 results: EPS: RM0.021 (down from RM0.023 in 1Q 2022). Revenue: RM29.7m (down 2.9% from 1Q 2022). Net income: RM3.44m (down 6.8% from 1Q 2022). Profit margin: 12% (in line with 1Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Mar 09
Upcoming dividend of RM0.035 per share at 4.3% yield Eligible shareholders must have bought the stock before 16 March 2023. Payment date: 31 March 2023. Payout ratio is a comfortable 43% and this is well supported by cash flows. Trailing yield: 4.3%. Lower than top quartile of Malaysian dividend payers (5.2%). In line with average of industry peers (4.7%). Price Target Changed • Feb 22
Price target increased by 9.7% to RM1.06 Up from RM0.97, the current price target is an average from 3 analysts. New target price is 28% above last closing price of RM0.82. The company is forecast to post earnings per share of RM0.09 for next year compared to RM0.081 last year. Reported Earnings • Feb 22
Full year 2022 earnings released: EPS: RM0.081 (vs RM0.047 in FY 2021) Full year 2022 results: EPS: RM0.081 (up from RM0.047 in FY 2021). Revenue: RM129.0m (up 23% from FY 2021). Net income: RM13.0m (up 72% from FY 2021). Profit margin: 10% (up from 7.2% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 17% per year whereas the company’s share price has increased by 13% per year. Buying Opportunity • Feb 08
Now 21% undervalued Over the last 90 days, the stock is up 27%. The fair value is estimated to be RM1.01, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.2% over the last 3 years. Earnings per share has grown by 9.1%. Revenue is forecast to grow by 37% in 2 years. Earnings is forecast to grow by 49% in the next 2 years. Reported Earnings • Nov 22
Third quarter 2022 earnings released: EPS: RM0.015 (vs RM0.007 in 3Q 2021) Third quarter 2022 results: EPS: RM0.015 (up from RM0.007 in 3Q 2021). Revenue: RM31.7m (up 64% from 3Q 2021). Net income: RM2.43m (up 124% from 3Q 2021). Profit margin: 7.7% (up from 5.6% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 7.9% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 9% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Reported Earnings • Aug 24
Second quarter 2022 earnings released: EPS: RM0.019 (vs RM0.011 in 2Q 2021) Second quarter 2022 results: EPS: RM0.019 (up from RM0.011 in 2Q 2021). Revenue: RM31.4m (up 19% from 2Q 2021). Net income: RM3.12m (up 74% from 2Q 2021). Profit margin: 9.9% (up from 6.8% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 27%, compared to a 37% growth forecast for the Consumer Durables industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 1% per year and the company’s share price has also increased by 1% per year. Reported Earnings • May 25
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: RM0.023 (up from RM0.015 in 1Q 2021). Revenue: RM30.6m (up 16% from 1Q 2021). Net income: RM3.68m (up 51% from 1Q 2021). Profit margin: 12% (up from 9.2% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 6.2%. Over the next year, revenue is forecast to grow 35%, compared to a 35% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 4% per year. Price Target Changed • Apr 27
Price target decreased to RM1.63 Down from RM1.84, the current price target is provided by 1 analyst. New target price is 112% above last closing price of RM0.77. Stock is down 15% over the past year. The company is forecast to post earnings per share of RM0.08 for next year compared to RM0.047 last year. Announcement • Apr 24
Lee Swee Kiat Group Berhad, Annual General Meeting, May 23, 2022 Lee Swee Kiat Group Berhad, Annual General Meeting, May 23, 2022, at 10:00 Singapore Standard Time. Location: Wisma LSK, Lot 6122, Jalan Haji Abdul Manan Off Jalan Meru, 41050 Klang Darul Ehsan Selangor Malaysia Upcoming Dividend • Mar 10
Upcoming dividend of RM0.025 per share Eligible shareholders must have bought the stock before 17 March 2022. Payment date: 31 March 2022. Payout ratio is a comfortable 53% but the company is paying out more than the cash it is generating. Trailing yield: 3.2%. Lower than top quartile of Malaysian dividend payers (4.8%). Lower than average of industry peers (4.7%). Announcement • Feb 22
Lee Swee Kiat Group Berhad Declares Interim Dividend for the Financial Year Ended 31 December 2021 Lee Swee Kiat Group Berhad declared an interim dividend of 2.5 sen per ordinary share under the single-tier system in respect of the financial year ended 31 December 2021. The dividend entitlement date and payment date will be determined and announced later. Reported Earnings • Feb 22
Full year 2021 earnings: Revenues miss analyst expectations Full year 2021 results: Revenue: RM104.6m (up 8.3% from FY 2020). Net income: RM7.58m (up 15% from FY 2020). Profit margin: 7.2% (up from 6.8% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 32%, compared to a 40% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Executive Departure • Dec 03
Senior Independent Non-Executive Director Thin Au has left the company On the 1st of December, Thin Au's tenure as Senior Independent Non-Executive Director ended after 17.7 years in the role. As of September 2021, Thin still personally held only 54.80k shares (RM48k worth at the time). Thin is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 10.33 years. Reported Earnings • Nov 24
Third quarter 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2021 results: EPS: RM0.007 (down from RM0.024 in 3Q 2020). Revenue: RM19.4m (down 35% from 3Q 2020). Net income: RM1.08m (down 72% from 3Q 2020). Profit margin: 5.6% (down from 13% in 3Q 2020). The decrease in margin was driven by lower revenue. Revenue exceeded analyst estimates by 4.3%. Earnings per share (EPS) missed analyst estimates by 19%. Earnings per share (EPS) missed analyst estimates by 19%. Over the next year, revenue is forecast to grow 26%, compared to a 10.0% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 26
Second quarter 2021 earnings released: EPS RM0.011 (vs RM0.001 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: RM26.4m (up 80% from 2Q 2020). Net income: RM1.80m (up RM1.64m from 2Q 2020). Profit margin: 6.8% (up from 1.0% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 9% per year whereas the company’s share price has fallen by 5% per year. Reported Earnings • Apr 27
Full year 2020 earnings released: EPS RM0.041 (vs RM0.05 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM96.6m (down 5.1% from FY 2019). Net income: RM6.58m (down 19% from FY 2019). Profit margin: 6.8% (down from 7.9% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Apr 19
Investor sentiment improved over the past week After last week's 17% share price gain to RM1.02, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 9x in the Consumer Durables industry in Malaysia. Total returns to shareholders of 72% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM0.96 per share. Valuation Update With 7 Day Price Move • Feb 22
Investor sentiment improved over the past week After last week's 20% share price gain to RM1.10, the stock is trading at a trailing P/E ratio of 22x, up from the previous P/E ratio of 18.4x. This compares to an average P/E of 17x in the Consumer Durables industry in Malaysia. Total returns to shareholders over the past three years are 115%. Is New 90 Day High Low • Feb 22
New 90-day high: RM1.10 The company is up 59% from its price of RM0.69 on 24 November 2020. The Malaysian market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM0.99 per share. Is New 90 Day High Low • Dec 08
New 90-day high: RM0.78 The company is up 63% from its price of RM0.47 on 09 September 2020. The Malaysian market is up 8.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 16% over the same period. Major Estimate Revision • Nov 30
Analysts increase revenue estimates to RM87.6m The 2020 consensus revenue estimate increased from RM71.7m. Earning per share (EPS) estimate also increased from RM0.027 to RM0.05 for the same period. Net income is expected to grow by 24% next year compared to 8.2% growth forecast for the Consumer Durables industry in Malaysia. The consensus price target increased from RM0.68 to RM0.96. Share price is up 8.5% to RM0.70 over the past week. Price Target Changed • Nov 26
Price target raised to RM0.96 Up from RM0.68, the current price target is provided by 1 analyst. The new target price is 37% above the current share price of RM0.70. As of last close, the stock is up 15% over the past year. Reported Earnings • Nov 25
Third quarter 2020 earnings released: EPS RM0.024 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: RM29.6m (up 18% from 3Q 2019). Net income: RM3.84m (up 162% from 3Q 2019). Profit margin: 13% (up from 5.8% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth. Is New 90 Day High Low • Nov 05
New 90-day high: RM0.63 The company is up 26% from its price of RM0.49 on 07 August 2020. The Malaysian market is down 6.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Consumer Durables industry, which is up 15% over the same period. Is New 90 Day High Low • Oct 20
New 90-day high: RM0.52 The company is up 10.0% from its price of RM0.47 on 22 July 2020. The Malaysian market is down 1.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Consumer Durables industry, which is up 17% over the same period.