AwanBiru Technology Berhad (KLSE:AWANTEC) - Share price, News & Analysis

AWANTEC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	1/6
Financial Health	3/6
Dividends	0/6

AWANTEC Stock Overview

AwanBiru Technology Berhad, an investment holding company, provides information and communications technology (ICT) training and certification services in Malaysia.

Rewards

Trading at 86.2% below our estimate of its fair value

Earnings are forecast to grow 7.37% per year

Became profitable this year

Risk Analysis

Large one-off items impacting financial results

Does not have a meaningful market cap (MYR394M)

AwanBiru Technology Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AwanBiru Technology Berhad
Historical stock prices
Current Share Price	RM0.50
52 Week High	RM0.94
52 Week Low	RM0.50
Beta	2.97
1 Month Change	-9.09%
3 Month Change	-18.03%
1 Year Change	-45.06%
3 Year Change	56.68%
5 Year Change	-71.89%
Change since IPO	58.79%

Recent News & Updates

Apr 04

AwanBiru Technology Berhad (KLSE:AWANTEC) Has Debt But No Earnings; Should You Worry?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

	AWANTEC	MY Consumer Services	MY Market
7D	-6.5%	-1.9%	-0.8%
1Y	-45.1%	-23.2%	-4.5%

Return vs Industry: AWANTEC underperformed the MY Consumer Services industry which returned -23.2% over the past year.

Return vs Market: AWANTEC underperformed the MY Market which returned -4.5% over the past year.

Price Volatility

Is AWANTEC's price volatile compared to industry and market?
AWANTEC volatility
AWANTEC Average Weekly Movement	5.8%
Consumer Services Industry Average Movement	9.3%
Market Average Movement	5.8%
10% most volatile stocks in MY Market	11.9%
10% least volatile stocks in MY Market	3.0%

Stable Share Price: AWANTEC is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: AWANTEC's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2003	35	Rezal bin Abdul Rahman	https://www.awantec.my

AwanBiru Technology Berhad, an investment holding company, provides information and communications technology (ICT) training and certification services in Malaysia. The company operates through Information and Communications Technology Training and Certification and Software License Distribution and Management; Concession; and Employment Services segments. It offers basic and professional ICT training and certification comprising instructor-led courses and certification examination; and distributes and manages software licenses.

AwanBiru Technology Berhad Fundamentals Summary

How do AwanBiru Technology Berhad's earnings and revenue compare to its market cap?
AWANTEC fundamental statistics
Market Cap	RM393.71m
Earnings (TTM)	RM4.61m
Revenue (TTM)	RM96.30m

85.5x

P/E Ratio

4.1x

P/S Ratio

Is AWANTEC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
AWANTEC income statement (TTM)
Revenue	RM96.30m
Cost of Revenue	RM75.80m
Gross Profit	RM20.50m
Other Expenses	RM15.90m
Earnings	RM4.61m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.0059
Gross Margin	21.29%
Net Profit Margin	4.78%
Debt/Equity Ratio	11.5%

How did AWANTEC perform over the long term?

See historical performance and comparison

Valuation

Is AwanBiru Technology Berhad undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: AWANTEC (MYR0.5) is trading below our estimate of fair value (MYR3.63)

Significantly Below Fair Value: AWANTEC is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: AWANTEC is poor value based on its Price-To-Earnings Ratio (85.5x) compared to the Asian Consumer Services industry average (14.9x).

PE vs Market: AWANTEC is poor value based on its Price-To-Earnings Ratio (85.5x) compared to the MY market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: AWANTEC is poor value based on its PEG Ratio (11.6x)

Price to Book Ratio

PB vs Industry: AWANTEC is overvalued based on its Price-To-Book Ratio (2.1x) compared to the MY Consumer Services industry average (0.9x).

Future Growth

How is AwanBiru Technology Berhad forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: AWANTEC's forecast earnings growth (7.4% per year) is above the savings rate (3.6%).

Earnings vs Market: AWANTEC's earnings (7.4% per year) are forecast to grow slower than the MY market (10.2% per year).

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

Revenue vs Market: AWANTEC's revenue is expected to decline over the next 3 years (-11% per year).

High Growth Revenue: AWANTEC's revenue is forecast to decline over the next 3 years (-11% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: AWANTEC's Return on Equity is forecast to be low in 3 years time (4.4%).

Past Performance

How has AwanBiru Technology Berhad 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

-51.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: AWANTEC has a large one-off gain of MYR5.3M impacting its December 31 2021 financial results.

Growing Profit Margin: AWANTEC became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: AWANTEC's earnings have declined by 51.4% per year over the past 5 years.

Accelerating Growth: AWANTEC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: AWANTEC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (21%).

Return on Equity

High ROE: AWANTEC's Return on Equity (2.2%) is considered low.

Financial Health

How is AwanBiru Technology Berhad's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: AWANTEC's short term assets (MYR399.7M) exceed its short term liabilities (MYR216.2M).

Long Term Liabilities: AWANTEC's short term assets (MYR399.7M) exceed its long term liabilities (MYR35.4M).

Debt to Equity History and Analysis

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

Reducing Debt: AWANTEC's debt to equity ratio has increased from 0% to 11.5% over the past 5 years.

Debt Coverage: AWANTEC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if AWANTEC's interest payments on its debt are well covered by EBIT.

Balance Sheet

Dividend

What is AwanBiru Technology Berhad 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

2.00%

Forecast Dividend Yield

Dividend Yield vs Market

Notable Dividend: Unable to evaluate AWANTEC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate AWANTEC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AWANTEC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AWANTEC's dividend payments have been increasing.

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as AWANTEC has not reported any payouts.

Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure

CEO

Rezal bin Abdul Rahman

0.25

Tenure

Mr. Rezal Adzly bin Abdul Rahman serves as Chief Executive Officer and Non-Independent Executive Director at AwanBiru Technology Berhad since February 1, 2022. He had been the Chief Executive Officer of Is...

Leadership Team

Experienced Management: AWANTEC's management team is considered experienced (3.3 years average tenure).

Board Members

Experienced Board: AWANTEC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.

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	2022/05/28 00:00
End of Day Share Price	2022/05/27 00:00
Earnings	2021/12/31
Annual Earnings	2021/06/30