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AJI

Ajinomoto (Malaysia) BerhadKLSE:AJI Stock Report

Market Cap

RM980.1m

7D

1.0%

1Y

9.5%

Updated

27 Oct, 2021

Data

Company Financials +
AJI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends4/6

AJI Overview

Ajinomoto (Malaysia) Berhad manufactures and sells monosodium glutamate and other related products in Malaysia.

Price History & Performance

Summary of all time highs, changes and price drops for Ajinomoto (Malaysia) Berhad
Historical stock prices
Current Share PriceRM16.20
52 Week HighRM14.02
52 Week LowRM16.60
Beta0.39
1 Month Change2.14%
3 Month Change3.45%
1 Year Change9.46%
3 Year Change-11.96%
5 Year Change20.00%
Change since IPO548.79%

Recent News & Updates

Aug 22
Ajinomoto (Malaysia) Berhad (KLSE:AJI) Is Paying Out Less In Dividends Than Last Year

Ajinomoto (Malaysia) Berhad (KLSE:AJI) Is Paying Out Less In Dividends Than Last Year

Ajinomoto (Malaysia) Berhad's ( KLSE:AJI ) dividend is being reduced to RM0.38 on the 22nd of October. However, the...

Jun 03
Is Ajinomoto (Malaysia) Berhad (KLSE:AJI) Using Too Much Debt?

Is Ajinomoto (Malaysia) Berhad (KLSE:AJI) Using Too Much Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Shareholder Returns

AJIMY FoodMY Market
7D1.0%-0.5%-1.0%
1Y9.5%-2.5%10.0%

Return vs Industry: AJI exceeded the MY Food industry which returned -2.5% over the past year.

Return vs Market: AJI matched the MY Market which returned 10% over the past year.

Price Volatility

Is AJI's price volatile compared to industry and market?
AJI volatility
AJI Beta0.39
Industry Beta0.52
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1961n/aTomoharu Abehttps://www.ajinomoto.com.my

Ajinomoto (Malaysia) Berhad manufactures and sells monosodium glutamate and other related products in Malaysia. The company operates through Consumer Business and Industrial Business segments. Its retail products include AJI-NO-MOTO, a monosodium glutamate product; Rasa Sifu, a seasoning product; TUMIX, a chicken stock seasoning product; SERI-AJI, a menu specific seasoning; AJI-SHIO, a seasoning that includes flavored pepper and black pepper; AJI-MIX, a blended seasoning; Pal Sweet, a sugar free sweetener; and AJI-NO-MOTO plus, a flavor enhancer used in various dishes.

Ajinomoto (Malaysia) Berhad Fundamentals Summary

How do Ajinomoto (Malaysia) Berhad's earnings and revenue compare to its market cap?
AJI fundamental statistics
Market CapRM980.07m
Earnings (TTM)RM46.65m
Revenue (TTM)RM463.11m

21.1x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AJI income statement (TTM)
RevenueRM463.11m
Cost of RevenueRM250.67m
Gross ProfitRM212.43m
ExpensesRM165.78m
EarningsRM46.65m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.77
Gross Margin45.87%
Net Profit Margin10.07%
Debt/Equity Ratio18.9%

How did AJI perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

50%

Payout Ratio

Valuation

Is Ajinomoto (Malaysia) Berhad undervalued compared to its fair value and its price relative to the market?

21.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AJI (MYR16.2) is trading above our estimate of fair value (MYR11.85)

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


Price To Earnings Ratio

PE vs Industry: AJI is poor value based on its PE Ratio (21.1x) compared to the MY Food industry average (15.3x).

PE vs Market: AJI is poor value based on its PE Ratio (21.1x) compared to the MY market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: AJI is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: AJI is overvalued based on its PB Ratio (1.9x) compared to the MY Food industry average (1.1x).


Future Growth

How is Ajinomoto (Malaysia) Berhad forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

11.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AJI's forecast earnings growth (11.8% per year) is above the savings rate (3.6%).

Earnings vs Market: AJI's earnings (11.8% per year) are forecast to grow faster than the MY market (10.1% per year).

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

Revenue vs Market: AJI's revenue (5.4% per year) is forecast to grow slower than the MY market (6.3% per year).

High Growth Revenue: AJI's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AJI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ajinomoto (Malaysia) Berhad performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AJI has a high level of non-cash earnings.

Growing Profit Margin: AJI's current net profit margins (10.1%) are lower than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: AJI's earnings have declined by 17.2% per year over the past 5 years.

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

Earnings vs Industry: AJI had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the Food industry average (55.6%).


Return on Equity

High ROE: AJI's Return on Equity (8.8%) is considered low.


Financial Health

How is Ajinomoto (Malaysia) Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: AJI's short term assets (MYR324.0M) exceed its short term liabilities (MYR88.5M).

Long Term Liabilities: AJI's short term assets (MYR324.0M) exceed its long term liabilities (MYR114.0M).


Debt to Equity History and Analysis

Debt Level: AJI's debt to equity ratio (18.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if AJI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: AJI's debt is well covered by operating cash flow (59.8%).

Interest Coverage: AJI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ajinomoto (Malaysia) Berhad current dividend yield, its reliability and sustainability?

2.36%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AJI's dividend (2.36%) is higher than the bottom 25% of dividend payers in the MY market (1.52%).

High Dividend: AJI's dividend (2.36%) is low compared to the top 25% of dividend payers in the MY market (4.17%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), AJI's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AJI's dividends in 3 years are forecast to be covered by earnings (50.9% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Tomoharu Abe (53 yo)

1.25yrs

Tenure

RM664,368

Compensation

Mr. Tomoharu Abe serves as Managing Director, Chief Executive Officer and Director at Ajinomoto (Malaysia) Berhad since July 01, 2020. He joined Ajinomoto Co., Inc, Japan in 1992 and began his career with...


CEO Compensation Analysis

Compensation vs Market: Tomoharu's total compensation ($USD159.96K) is about average for companies of similar size in the MY market ($USD182.20K).

Compensation vs Earnings: Insufficient data to compare Tomoharu's compensation with company performance.


Leadership Team

Experienced Management: AJI's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: AJI's board of directors are not considered experienced ( 1.3 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.


Top Shareholders

Company Information

Ajinomoto (Malaysia) Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Ajinomoto (Malaysia) Berhad
  • Ticker: AJI
  • Exchange: KLSE
  • Founded: 1961
  • Industry: Packaged Foods and Meats
  • Sector: Food, Beverage & Tobacco
  • Market Cap: RM980.072m
  • Shares outstanding: 60.80m
  • Website: https://www.ajinomoto.com.my

Number of Employees


Location

  • Ajinomoto (Malaysia) Berhad
  • Lot 5710
  • Jalan Kuchai Lama
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 58200
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/27 11:02
End of Day Share Price2021/10/27 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.