Malaysia Marine and Heavy Engineering Holdings Berhad

KLSE:MHB Stock Report

Market Cap: RM 672.0m

Malaysia Marine and Heavy Engineering Holdings Berhad Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MHB (MYR0.42) is trading above our estimate of fair value (MYR0.04)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MHB?

Key metric: As MHB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MHB. This is calculated by dividing MHB's market cap by their current earnings.
What is MHB's PE Ratio?
PE Ratio6.4x
EarningsRM 105.80m
Market CapRM 672.00m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MHB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.5x
PERDANA Perdana Petroleum Berhad
4.5xn/aRM 623.6m
WASCO Wasco Berhad
5.2x-6.0%RM 813.0m
T7GLOBAL T7 Global Berhad
11x32.1%RM 415.9m
DELEUM Deleum Berhad
9.1x5.6%RM 534.1m
MHB Malaysia Marine and Heavy Engineering Holdings Berhad
6.4x1.7%RM 672.0m

Price-To-Earnings vs Peers: MHB is good value based on its Price-To-Earnings Ratio (6.4x) compared to the peer average (7.5x).

Price to Earnings Ratio vs Industry

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

8 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHB 6.4xIndustry Avg. 15.0xNo. of Companies14PE01020304050+
8 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MHB is good value based on its Price-To-Earnings Ratio (6.4x) compared to the Asian Energy Services industry average (15x).

Price to Earnings Ratio vs Fair Ratio

What is MHB'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.

MHB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.4x
Fair PE Ratio6.7x

Price-To-Earnings vs Fair Ratio: MHB is good value based on its Price-To-Earnings Ratio (6.4x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MHB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentRM 0.42
RM 0.72
+71.0%
16.6%RM 0.94RM 0.61n/a5
Nov ’25RM 0.43
RM 0.70
+63.3%
17.6%RM 0.94RM 0.61n/a5
Oct ’25RM 0.43
RM 0.70
+61.4%
17.6%RM 0.94RM 0.61n/a5
Sep ’25RM 0.45
RM 0.70
+56.0%
17.6%RM 0.94RM 0.61n/a5
Aug ’25RM 0.45
RM 0.67
+48.4%
20.9%RM 0.94RM 0.55n/a5
Jul ’25RM 0.46
RM 0.67
+45.2%
20.9%RM 0.94RM 0.55n/a5
Jun ’25RM 0.48
RM 0.67
+37.7%
20.9%RM 0.94RM 0.55n/a5
May ’25RM 0.47
RM 0.63
+31.8%
25.7%RM 0.94RM 0.51n/a5
Apr ’25RM 0.47
RM 0.63
+31.8%
25.7%RM 0.94RM 0.51n/a5
Mar ’25RM 0.46
RM 0.63
+37.6%
25.7%RM 0.94RM 0.51n/a5
Feb ’25RM 0.48
RM 0.65
+33.2%
24.0%RM 0.94RM 0.51n/a5
Jan ’25RM 0.48
RM 0.65
+34.6%
24.0%RM 0.94RM 0.51n/a5
Dec ’24RM 0.47
RM 0.65
+37.4%
24.0%RM 0.94RM 0.51n/a5
Nov ’24RM 0.51
RM 0.69
+34.3%
23.9%RM 0.94RM 0.51RM 0.436
Oct ’24RM 0.53
RM 0.69
+30.5%
23.9%RM 0.94RM 0.51RM 0.436
Sep ’24RM 0.49
RM 0.69
+38.4%
23.9%RM 0.94RM 0.51RM 0.456
Aug ’24RM 0.56
RM 0.80
+43.5%
11.9%RM 0.94RM 0.62RM 0.456
Jul ’24RM 0.51
RM 0.80
+57.5%
11.9%RM 0.94RM 0.62RM 0.466
Jun ’24RM 0.52
RM 0.80
+54.5%
11.9%RM 0.94RM 0.62RM 0.486
May ’24RM 0.62
RM 0.81
+30.9%
11.9%RM 0.94RM 0.62RM 0.476
Apr ’24RM 0.62
RM 0.81
+30.9%
11.9%RM 0.94RM 0.62RM 0.476
Mar ’24RM 0.68
RM 0.81
+19.4%
11.9%RM 0.94RM 0.62RM 0.466
Feb ’24RM 0.68
RM 0.68
+1.0%
17.5%RM 0.85RM 0.51RM 0.486
Jan ’24RM 0.59
RM 0.68
+14.6%
17.5%RM 0.85RM 0.51RM 0.486
Dec ’23RM 0.60
RM 0.63
+4.7%
22.0%RM 0.85RM 0.46RM 0.476
Nov ’23RM 0.42
RM 0.56
+34.1%
26.3%RM 0.85RM 0.42RM 0.516

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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