Magni-Tech Industries Berhad (KLSE:MAGNI) - Share price, News & Analysis

MAGNI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	2/6
Financial Health	6/6
Dividends	3/6

MAGNI Stock Overview

Magni-Tech Industries Berhad, an investment holding company, manufactures and sells garments.

Rewards

PE ratio (8.7x) is below the MY market (15.2x)

Earnings are forecast to grow 18.37% per year

Risk Analysis

Dividend of 4.19% is not well covered by earnings

Magni-Tech Industries Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magni-Tech Industries Berhad
Historical stock prices
Current Share Price	RM1.91
52 Week High	RM2.45
52 Week Low	RM1.85
Beta	0.73
1 Month Change	-1.55%
3 Month Change	-4.50%
1 Year Change	-16.23%
3 Year Change	13.19%
5 Year Change	-8.39%
Change since IPO	302.11%

Shareholder Returns

	MAGNI	MY Luxury	MY Market
7D	-0.5%	-1.0%	0.08%
1Y	-16.2%	-30.3%	-2.8%

Return vs Industry: MAGNI exceeded the MY Luxury industry which returned -30.7% over the past year.

Return vs Market: MAGNI underperformed the MY Market which returned -3.5% over the past year.

Price Volatility

Is MAGNI's price volatile compared to industry and market?
MAGNI volatility
MAGNI Average Weekly Movement	2.4%
Luxury Industry Average Movement	10.5%
Market Average Movement	6.0%
10% most volatile stocks in MY Market	11.9%
10% least volatile stocks in MY Market	3.1%

Stable Share Price: MAGNI is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MAGNI's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1997	n/a	Poay Tan	https://www.magni-tech.com.my

Magni-Tech Industries Berhad, an investment holding company, manufactures and sells garments. The company also manufactures and distributes flexible plastic, corrugated cartons, packaging products. Its packaging products are used by the manufacturing sectors, such as the food, beverage, healthcare, rubber based, consumer household, and electronic sub-sectors.

Magni-Tech Industries Berhad Fundamentals Summary

How do Magni-Tech Industries Berhad's earnings and revenue compare to its market cap?
MAGNI fundamental statistics
Market Cap	RM827.89m
Earnings (TTM)	RM95.42m
Revenue (TTM)	RM1.03b

8.7x

P/E Ratio

0.8x

P/S Ratio

Is MAGNI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAGNI income statement (TTM)
Revenue	RM1.03b
Cost of Revenue	RM867.65m
Gross Profit	RM160.54m
Other Expenses	RM65.12m
Earnings	RM95.42m

Last Reported Earnings

Jan 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.22
Gross Margin	15.61%
Net Profit Margin	9.28%
Debt/Equity Ratio	0.0%

How did MAGNI perform over the long term?

See historical performance and comparison

Dividends

4.2%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Magni-Tech Industries Berhad undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

8.68x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: MAGNI (MYR1.91) is trading above our estimate of fair value (MYR1.88)

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

Price To Earnings Ratio

PE vs Industry: MAGNI is good value based on its PE Ratio (8.7x) compared to the MY Luxury industry average (11.1x).

PE vs Market: MAGNI is good value based on its PE Ratio (8.7x) compared to the MY market (15.2x).

Price to Earnings Growth Ratio

PEG Ratio: MAGNI is good value based on its PEG Ratio (0.5x)

Price to Book Ratio

PB vs Industry: MAGNI is overvalued based on its PB Ratio (1.1x) compared to the MY Luxury industry average (0.9x).

Future Growth

How is Magni-Tech Industries Berhad 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

18.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAGNI's forecast earnings growth (18.4% per year) is above the savings rate (3.6%).

Earnings vs Market: MAGNI's earnings (18.4% per year) are forecast to grow faster than the MY market (10.9% per year).

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

Revenue vs Market: MAGNI's revenue (14% per year) is forecast to grow faster than the MY market (6.6% per year).

High Growth Revenue: MAGNI's revenue (14% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: MAGNI's Return on Equity is forecast to be low in 3 years time (15.7%).

Past Performance

How has Magni-Tech Industries Berhad performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

2.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAGNI has high quality earnings.

Growing Profit Margin: MAGNI's current net profit margins (9.3%) are lower than last year (10.5%).

Past Earnings Growth Analysis

Earnings Trend: MAGNI's earnings have grown by 2.4% per year over the past 5 years.

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

Earnings vs Industry: MAGNI had negative earnings growth (-23.9%) over the past year, making it difficult to compare to the Luxury industry average (8.2%).

Return on Equity

High ROE: MAGNI's Return on Equity (12.9%) is considered low.

Financial Health

How is Magni-Tech Industries Berhad'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: MAGNI's short term assets (MYR721.4M) exceed its short term liabilities (MYR54.2M).

Long Term Liabilities: MAGNI's short term assets (MYR721.4M) exceed its long term liabilities (MYR5.6M).

Debt to Equity History and Analysis

Debt Level: MAGNI is debt free.

Reducing Debt: MAGNI has not had any debt for past 5 years.

Debt Coverage: MAGNI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MAGNI has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Magni-Tech Industries Berhad current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.19%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAGNI's dividend (4.19%) is higher than the bottom 25% of dividend payers in the MY market (1.85%).

High Dividend: MAGNI's dividend (4.19%) is low compared to the top 25% of dividend payers in the MY market (4.6%).

Stability and Growth of Payments

Stable Dividend: MAGNI's dividend payments have been volatile in the past 10 years.

Growing Dividend: MAGNI's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (30.9%), MAGNI's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (135.4%), MAGNI's dividend payments are not well covered by cash flows.

Next Steps

Explore strong dividend paying companies in the Consumer Durables industry.

Management

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

10.3yrs

Average management tenure

CEO

Poay Tan (55 yo)

22.33yrs

Tenure

RM5,779,057

Compensation

Mr. Poay Seng Tan has been the Managing Director of Magni-Tech Industries Berhad since 2000. Mr. Tan served as the Managing Director of South Island Garment Sdn Bhd, an export orientated garment manufactur...

CEO Compensation Analysis

Compensation vs Market: Poay's total compensation ($USD1.32M) is above average for companies of similar size in the MY market ($USD159.07K).

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

Leadership Team

Experienced Management: MAGNI's management team is seasoned and experienced (10.3 years average tenure).

Board Members

Experienced Board: MAGNI's board of directors are seasoned and experienced ( 17.3 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/01/31
Annual Earnings	2021/04/30