New Risk • Feb 16
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended March 2025. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (36% average weekly change). Earnings have declined by 60% per year over the past 5 years. Minor Risks Latest financial reports are more than 6 months old (reported March 2025 fiscal period end). Revenue is less than US$5m (RM18m revenue, or US$4.6m). Market cap is less than US$100m (RM40.0m market cap, or US$10.2m). Announcement • Aug 22
Reneuco Berhad has filed a Follow-on Equity Offering in the amount of MYR 7.997339 million. Reneuco Berhad has filed a Follow-on Equity Offering in the amount of MYR 7.997339 million.
Security Name: Ordinary Shares
Security Type: Common Stock
Securities Offered: 114,247,700
Price\Range: MYR 0.07
Transaction Features: Subsequent Direct Listing Announcement • Jul 31
Reneuco Berhad, Annual General Meeting, Aug 29, 2025 Reneuco Berhad, Annual General Meeting, Aug 29, 2025, at 15:30 Singapore Standard Time. Location: putera hall, tasik puteri golf & country club berh, bandar tasik puteri, 48020 rawang, selangor darul ehsan, Malaysia Reported Earnings • Nov 28
Full year 2024 earnings released: RM0.012 loss per share (vs RM0.17 loss in FY 2023) Full year 2024 results: RM0.012 loss per share (improved from RM0.17 loss in FY 2023). Net loss: RM12.1m (loss narrowed 87% from FY 2023). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 63 percentage points per year, which is a significant difference in performance. New Risk • Aug 26
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended September 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. Currently, the following risks have been identified for the company: Major Risks Debt is not well covered by operating cash flow (currently running at an operating cash loss). Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 20% per year over the past 5 years. Shareholders have been substantially diluted in the past year (88% increase in shares outstanding). Minor Risks Latest financial reports are more than 6 months old (reported September 2023 fiscal period end). Market cap is less than US$100m (RM89.8m market cap, or US$20.5m). Announcement • Aug 22
Reneuco Berhad Announces Resignation of Ym Tunku Datuk Nooruddin Bin Tunku Dato' Seri Shahabuddin as Independent and Non Executive Director Reneuco Berhad announced resignation of YM TUNKU DATUK NOORUDDIN BIN TUNKU DATO' SERI SHAHABUDDIN as Independent and Non Executive Director to pursue his personal interest and commitment. Date of change is August 19, 2024. Age is 60. Bachelor of Science (Business Administration) from United States International University (USIU, now renamed as Alliant University) San Diego, USA. London Campus and O & A Level (Oxford & Cambridge Certification) from Cheltenham College, Gloucestershire, England. Working experience and occupation: Y.M. Tunku Datuk Nooruddin bin Tunku Dato' Seri Shahabuddin ("Y.M. Tunku Datuk Nooruddin") has an extensive background in the Oil, Gas & Energy industries including Esso Malaysia Berhad Downstream (Exxon Mobil), where he effectively managed refinery products distribution and Government National accounts. He was the Executive Director of Reach Energy Berhad and Baker Hughes INTEQ (BHI) and other subsidiaries of Baker Hughes Group of Companies in Malaysia involved in upstream Oil & Gas (O&G) exploration and development activities. His primary responsibilities were to ensure a secure supply of goods and services for both local and international O&G operators in Malaysia. As a PSC licensed service provider to Petronas, he oversaw BHI Malaysia's engagement in international activities as well. Y.M. Tunku Datuk Nooruddin also provided advisory services to various companies involved in international trade such as Avaria International FZE, Jotun Paints, Al Madina LLC, SCS Computer Systems Sdn Bhd, Electrolux, Tideway-Dredging International, Yoshida BM Japan, Paylink Global Sdn Bhd, Japan Halal Promotion Association, Malene Insurance Brokers, Singapore Precious Metals Exchange (SGPMX Malaysia) and others in South East Asia, the United Arab Emirates, Oman and Kazakhstan. Y.M. Tunku Datuk Nooruddin has extensive business experience and held various senior positions such as Business Development Advisor of Lebtech Energy, Business Development Advisor of Sustainable Investments LLC, Advisor of Infolliance Sdn Bhd, Pro-Chancellor of Universiti Sultan Zainal Abidin, Terengganu, Shareholder of Vanguard Group Asia Sdn Bhd, Director of Singapore Precious Metals Exchange, Chairperson of Paylink Global (M) Sdn Bhd. Tunku Datuk Nooruddin is also the Vice President of Majlis Datuk Dato' Malaysia (MDDM). Reported Earnings • Feb 09
Full year 2023 earnings released: RM0.16 loss per share (vs RM0.009 profit in FY 2022) Full year 2023 results: RM0.16 loss per share (down from RM0.009 profit in FY 2022). Revenue: RM51.7m (down 56% from FY 2022). Net loss: RM93.6m (down RM98.6m from profit in FY 2022). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 28 percentage points per year, which is a significant difference in performance. Announcement • Feb 08
Reneuco Berhad, Annual General Meeting, Mar 27, 2024 Reneuco Berhad, Annual General Meeting, Mar 27, 2024, at 10:30 Singapore Standard Time. Agenda: To receive the Audited Financial Statements for the financial period ended 30 September 2023 together with the Reports of the Directors and Auditors thereon; to approve the payment of Directors fees of up to RMB 894,600.00 commencing from the conclusion of the 26th AGM until the next Annual General Meeting of the Company; to approve the payment of Directors benefits of up to RMB 330,600.00 commencing from the conclusion of the 26th AGM until the next Annual General Meeting of the Company; to re-elect Sarah Azreen binti Abdul Samat who retires pursuant to Clause 76(3) of the Constitution of the Company; to re-elect Tan Yee Hou who retires pursuant to Clause 76(3) of the Constitution of the Company; to re-elect Dato' Dr. Md Khir bin Abdul Rahman who retires pursuant to Clause 78 of the Constitution of the Company; and to discuss other matters. New Risk • Jan 31
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Malaysian stocks, typically moving 16% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (16% average weekly change). Earnings have declined by 26% per year over the past 5 years. Shareholders have been substantially diluted in the past year (107% increase in shares outstanding). Minor Risk Market cap is less than US$100m (RM95.4m market cap, or US$20.2m). New Risk • Dec 16
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 97% This is considered a major 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: Major Risks Earnings have declined by 26% per year over the past 5 years. Shareholders have been substantially diluted in the past year (97% increase in shares outstanding). Minor Risks Share price has been volatile over the past 3 months (9.9% average weekly change). Market cap is less than US$100m (RM257.2m market cap, or US$55.0m). New Risk • Dec 01
New major risk - Revenue and earnings growth Earnings have declined by 26% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 26% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Shareholders have been diluted in the past year (33% increase in shares outstanding). Market cap is less than US$100m (RM140.5m market cap, or US$30.1m). New Risk • Oct 31
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (42% accrual ratio). Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Shareholders have been diluted in the past year (21% increase in shares outstanding). Market cap is less than US$100m (RM128.3m market cap, or US$26.9m). Reported Earnings • Sep 01
Full year 2023 earnings released: EPS: RM0.012 (vs RM0.011 in FY 2022) Full year 2023 results: EPS: RM0.012 (up from RM0.011 in FY 2022). Revenue: RM62.2m (down 56% from FY 2022). Net income: RM6.37m (up 7.0% from FY 2022). Profit margin: 10% (up from 4.2% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 53% per year but the company’s share price has only fallen by 34% per year, which means it has not declined as severely as earnings. Reported Earnings • Jun 03
Third quarter 2023 earnings released: EPS: RM0.004 (vs RM0.013 in 3Q 2022) Third quarter 2023 results: EPS: RM0.004 (down from RM0.013 in 3Q 2022). Revenue: RM22.2m (down 56% from 3Q 2022). Net income: RM1.88m (down 72% from 3Q 2022). Profit margin: 8.5% (down from 13% in 3Q 2022). Over the last 3 years on average, earnings per share has fallen by 36% per year but the company’s share price has only fallen by 26% per year, which means it has not declined as severely as earnings. Reported Earnings • Mar 02
Second quarter 2023 earnings released: RM0.001 loss per share (vs RM0.004 profit in 2Q 2022) Second quarter 2023 results: RM0.001 loss per share (down from RM0.004 profit in 2Q 2022). Revenue: RM8.66m (down 85% from 2Q 2022). Net loss: RM513.0k (down 127% from profit in 2Q 2022). Over the last 3 years on average, earnings per share has fallen by 11% per year but the company’s share price has fallen by 27% per year, which means it is performing significantly worse than earnings. Reported Earnings • Dec 03
First quarter 2023 earnings released: EPS: RM0.004 (vs RM0.007 in 1Q 2022) First quarter 2023 results: EPS: RM0.004 (down from RM0.007 in 1Q 2022). Revenue: RM21.3m (down 51% from 1Q 2022). Net income: RM2.13m (down 32% from 1Q 2022). Profit margin: 10.0% (up from 7.2% in 1Q 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Nov 01
Reneuco Berhad, Annual General Meeting, Dec 07, 2022 Reneuco Berhad, Annual General Meeting, Dec 07, 2022, at 11:00 Singapore Standard Time. Location: Level 18, Plaza VADS, No.1, Jalan Tun Mohd Fuad Taman Tun Dr. Ismail, 60000 Kuala Lumpur Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 30 June 2022 together with the Reports of the Directors and Auditors thereon; to consider and approve the payment of Directors' fees for the period from the conclusion of the 25 AGM until the next Annual General Meeting of the Company; to consider and approve the payment of Directors; to consider and re-elect the Directors who retire pursuant to Clause 76(3) of Constitution of the Company; to consider and re-elect the Directors who retire pursuant to Clause 78 of Constitution of the Company; to consider and re-appoint Messrs Al Jafree Salihin Kuzaimi PLT as Auditors of the Company and to authorize the Directors to fix their remuneration; and to consider any other matters. Reported Earnings • Oct 21
Full year 2022 earnings released: EPS: RM0.011 (vs RM0.083 in FY 2021) Full year 2022 results: EPS: RM0.011 (down from RM0.083 in FY 2021). Revenue: RM140.4m (down 64% from FY 2021). Net income: RM5.95m (down 84% from FY 2021). Profit margin: 4.2% (down from 9.7% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Announcement • Oct 19
Reneuco Berhad Announces Appointment of Encik Khairil Ikhzan Bin Abd Aziz as Chief Financial Officer Reneuco Berhad announced appointment of Encik Khairil Ikhzan Bin Abd Aziz as Chief Financial Officer. Date of change is 17 October 2022. Age is 44, gender is Male and nationality is Malaysia. Qualifications: Certified Credit Professional from Institute Bank-Bank Malaysia (IBBM); Certified Practising Accountant from CPA Australia; Degree of Bachelor in Accountancy from Universiti Teknologi Mara; Diploma in Accountancy from Universiti Teknologi Mara. Working experience and occupation; Encik Khairil Ikhzan bin Abd Aziz (Encik Khairil) graduated with a Bachelor's Degree in Accountancy (Hons) from Universiti Teknologi Mara. He holds a Certified Credit Professional from Institute Bank-Bank Malaysia (IBBM) and a Certified Practising Accountant (CPA) qualification from CPA Australia. Encik Khairil was appointed as the Vice President /Head of Risk Management of the Company on 1 April 2021 and redesignated as the Vice President /Head of Risk Management and Corporate Finance & Strategy on 1 August 2021.Encik Khairil has over 15 years of experience in credit assessment, corporate banking, capital market & structured finance, government and stakeholders relations. He held various positions in Unit Peneraju Agenda Bumiputera (TERAJU), Bank Kerjasama Rakyat Malaysia Berhad, MIDF Amanah Investment Bank Berhad and Bumiputra Commerce Bank Berhad. Reported Earnings • Aug 31
Full year 2022 earnings released: EPS: RM0.011 (vs RM0.083 in FY 2021) Full year 2022 results: EPS: RM0.011 (down from RM0.083 in FY 2021). Revenue: RM172.5m (down 55% from FY 2021). Net income: RM5.88m (down 84% from FY 2021). Profit margin: 3.4% (down from 9.7% in FY 2021). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 39% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Aug 12
KPower Development Sdn. Bhd. Receives Approval from Pejabat Setiausaha Kerajaan Negeri Terengganu The Board of Directors of KPower announced that KPower Development Sdn. Bhd., a wholly owned subsidiary of KPower, has received the approval from the State Government of Terengganu via Pejabat Setiausaha Kerajaan Terengganu (Bahagian Perumahan), to develop affordable and mixed housing development on government land located at Lot 100677 (8.963 hectares) and 100678 (9.996 hectares) in Kawasan Pentadbiran Kuala Nerus, Mukim Batu Rakit, Daerah Kuala Nerus, Terengganu Darul Iman ("LOA"). SALIENT TERMS OF THE LOA: KDSB will be appointed by the State Government of Terengganu as the developer for the proposed development of affordable and mixed housing development on government land located at Lot 100677 (8.963 hectares) and 100678 (9.996 hectares) in Kawasan Pentadbiran Kuala Nerus, Mukim Batu Rakit, Daerah Kuala Nerus, Terengganu Darul Iman ("Proposed Development"). 4.85% of the gross development value shall be attributable to Tabung Perumahan Mampu Milik Terengganu under the purview of Bahagian Perumahan Setiausaha Kerajaan Terengganu. The components of the affordable housing shall be carried simultaneously with the commercial components. KDSB to allocate a minimum of 50% commercial shop units to Malays/Bumiputera. KDSB to grant a discount of 5% from the initial sales price to Malays/Bumiputera. KDSB to comply with the technical requirements by the relevant departments. KDSB and the State Government of Terengganu shall enter into definitive agreements within (6) months from the receipt of the Approval. Announcement • Jul 01
KPower Berhad Announces Resignation of Encik Mustakim Bin Mat Nun as Executive Member of Remuneration Committee KPower Berhad announced resignation of Encik Mustakim Bin Mat Nun as Executive Member of Remuneration Committee, effective June 30, 2022. Composition of Remuneration Committee are Sarah Azreen binti Abdul Samat (Chairperson) (Deputy Chairman and Non-Independent Non-Executive Director); Kok Pauline (Member) (Independent Non-Executive Director); and Ahmad Riza bin Mohd Saian (Member) (Independent Non-Executive Director). Reported Earnings • May 24
Third quarter 2022 earnings: EPS and revenues miss analyst expectations Third quarter 2022 results: EPS: RM0.014 (down from RM0.042 in 3Q 2021). Revenue: RM50.3m (down 64% from 3Q 2021). Net income: RM6.68m (down 53% from 3Q 2021). Profit margin: 13% (up from 10% in 3Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Over the last 3 years on average, earnings per share has increased by 66% per year but the company’s share price has only increased by 43% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 27
Second quarter 2022 earnings: EPS and revenues miss analyst expectations Second quarter 2022 results: EPS: RM0.004 (down from RM0.029 in 2Q 2021). Revenue: RM58.6m (down 35% from 2Q 2021). Net income: RM1.90m (down 80% from 2Q 2021). Profit margin: 3.2% (down from 10% in 2Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has only increased by 63% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 30
First quarter 2022 earnings: EPS and revenues miss analyst expectations First quarter 2022 results: EPS: RM0.007 (down from RM0.026 in 1Q 2021). Revenue: RM43.8m (down 23% from 1Q 2021). Net income: RM3.15m (down 61% from 1Q 2021). Profit margin: 7.2% (down from 14% in 1Q 2021). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 2.6%. Earnings per share (EPS) missed analyst estimates by 2.6%. Over the next year, revenue is forecast to grow 83%, compared to a 32% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 102% per year but the company’s share price has only increased by 65% per year, which means it is significantly lagging earnings growth. Executive Departure • Oct 03
Company Secretary Sit Yap has left the company On the 23rd of September, Sit Yap's tenure as Company Secretary ended after 2.1 years in the role. We don't have any record of a personal shareholding under Sit's name. Sit is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 2.17 years. Executive Departure • Sep 29
Company Secretary Sit Yap has left the company On the 23rd of September, Sit Yap's tenure as Company Secretary ended after 2.1 years in the role. We don't have any record of a personal shareholding under Sit's name. Sit is the only executive to leave the company over the last 12 months. The current median tenure of the management team is 2.13 years. Reported Earnings • Sep 24
Full year 2021 earnings released: EPS RM0.083 (vs RM0.04 in FY 2020) The company reported a solid full year result with improved earnings and revenues, although profit margins were weaker. Full year 2021 results: Revenue: RM386.1m (up 303% from FY 2020). Net income: RM37.5m (up 193% from FY 2020). Profit margin: 9.7% (down from 13% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 115% per year but the company’s share price has only increased by 74% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorated over the past week After last week's 19% share price decline to RM1.31, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 15x in the Luxury industry in Asia. Total returns to shareholders of 953% over the past three years. Major Estimate Revision • May 27
Consensus EPS estimates increase to RM0.085 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from RM414.4m to RM435.2m. EPS estimate increased from RM0.072 to RM0.085 per share. Net income forecast to grow 31% next year vs 30% growth forecast for Luxury industry in Malaysia. Consensus price target broadly unchanged at RM2.73. Share price rose 4.3% to RM1.69 over the past week. Reported Earnings • May 22
Third quarter 2021 earnings released: EPS RM0.042 (vs RM0.008 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: RM137.7m (up 335% from 3Q 2020). Net income: RM14.1m (up 429% from 3Q 2020). Profit margin: 10% (up from 8.4% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 127% per year but the company’s share price has increased by 139% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Mar 16
Kpower Berhad Announces Collaboration with Perbadanan Kemajuan Negeri Pahang The Board of Directors of KPower announced that KPower in collaboration with Perbadanan Kemajuan Negeri Pahang has been shortlisted in a competitive bidding exercise under the LSS4 conducted by the Energy Commission for the development of 50MW solar photovoltaic plant in the state of Pahang. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment deteriorated over the past week After last week's 15% share price decline to RM1.82, the stock is trading at a trailing P/E ratio of 21.5x, down from the previous P/E ratio of 25.3x. This compares to an average P/E of 16x in the Luxury industry in Malaysia. Total returns to shareholders over the past three years are 1,025%. Major Estimate Revision • Mar 01
Analysts update estimates The 2021 consensus earning per share (EPS) estimate increased from RM0.042 to RM0.072. No change was made to the revenue estimate which at the last update was RM414.4m. Net income is expected to grow by 53% next year compared to 28% growth forecast for the Luxury industry in Malaysia. The consensus price target was lowered from RM2.85 to RM2.72. Share price is up 2.0% to RM2.09 over the past week. Reported Earnings • Feb 25
Second quarter 2021 earnings released: EPS RM0.12 (vs RM0.006 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were weaker. Second quarter 2021 results: Revenue: RM90.1m (up RM76.4m from 2Q 2020). Net income: RM9.25m (up 397% from 2Q 2020). Profit margin: 10% (down from 14% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 128% per year whereas the company’s share price has increased by 132% per year. Major Estimate Revision • Jan 30
Analysts update estimates The 2021 consensus earning per share (EPS) estimate was lowered from RM0.072 to RM0.064. No change was made to the revenue estimate which at the last update was RM414.4m. Net income is expected to grow by 87% next year compared to 24% growth forecast for the Luxury industry in Malaysia. The consensus price target increased from RM2.11 to RM2.85. Share price is up 1.2% to RM2.48 over the past week. Is New 90 Day High Low • Jan 18
New 90-day high: RM2.80 The company is up 239% from its price of RM0.82 on 20 October 2020. The Malaysian market is up 7.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Luxury industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is RM4.07 per share. Announcement • Jan 14
Kumpulan Powernet Berhad (KLSE:KPOWER) completed the acquisition of 51% stake of Chemtrax Sdn Bhd from Sabaka Group Sdn Bhd. Kumpulan Powernet Berhad (KLSE:KPOWER) signed an agreement to acquire 51% stake of Chemtrax Sdn Bhd from Sabaka Group Sdn Bhd for MYR 10 million on October 21, 2020. The consideration will be paid as MYR 2 million deposit paid on date when the last conditions precedent is fulfilled and/or met and MYR 2 million paid within 30 days from the payment date of the first tranche and MYR 1 million each in next 6 tranches paid within 30 days of payment date of previous tranch. Pre-acquisition, Sabaka Group holds 100% stake in Chemtrax. Kumpulan Powernet will acquire 2.19 million shares of Chemtrax. The consideration will be satisfied entirely in cash, which will be financed through internally generated funds and/or bank borrowings. Chemtrax reported EBITDA of MYR 5.80 million, revenue of MYR 18.24 million, profit after tax of MYR 2.94 million and net asset of MYR 4.48 million for the year ended December 31, 2019. The chairman of Chemtrax Board shall be from KPower’s nominated directors and shall preside over the Chemtrax Board meeting and the general meeting of Chemtrax. Jaffar bin Abu Bakar, Director of Sabka will join as Chief Executive Officer of Chemtrax for a period of 2 years commencing for the date of the agreement until the end of the financial year end 2021 or the date Sabaka is released from the EBITDA Guarantee.
The transaction is subject to approvals from any relevant authorities in connection with the transfer of the Sale Shares and/or the change in the management of Chemtrax as contemplated under the agreement, subject to shareholder and Board of Directors approval of Chemtrax and Kumpulan Powernet and due diligence investigation. The transaction is expected to be completed by 2nd quarter of 2021. The acquisition is not expected to have any material effect on the audited consolidated NA and NA per share of KPower for the financial year ending June 30, 2021.
Kumpulan Powernet Berhad (KLSE:KPOWER) completed the acquisition of 51% stake of Chemtrax Sdn Bhd from Sabaka Group Sdn Bhd on January 13, 2021. Valuation Update With 7 Day Price Move • Jan 13
Investor sentiment improved over the past week After last week's 17% share price gain to RM2.22, the stock is trading at a trailing P/E ratio of 35.5x, up from the previous P/E ratio of 30.4x. This compares to an average P/E of 14x in the Luxury industry in Malaysia. Total returns to shareholders over the past three years are 1,113%. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment improved over the past week After last week's 18% share price gain to RM2.18, the stock is trading at a trailing P/E ratio of 34.9x, up from the previous P/E ratio of 29.4x. This compares to an average P/E of 14x in the Luxury industry in Malaysia. Total returns to shareholders over the past three years are 1,092%. Price Target Changed • Jan 06
Price target raised to RM8.44 Up from RM6.22, the current price target is an average from 2 analysts. The new target price is 11% above the current share price of RM7.60. As of last close, the stock is up 400% over the past year.