Cepatwawasan Group Berhad (KLSE:CEPAT) - Share price, News & Analysis

CEPAT fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	2/6

CEPAT Stock Overview

Cepatwawasan Group Berhad, an investment holding company, engages in the oil palm cultivation, milling, quarrying, and sale of oil palm products in Malaysia.

Rewards

Trading at 95.3% below our estimate of its fair value

Earnings grew by 187.8% over the past year

Risk Analysis

Does not have a meaningful market cap (MYR235M)

Cepatwawasan Group Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Cepatwawasan Group Berhad
Historical stock prices
Current Share Price	RM0.76
52 Week High	RM1.27
52 Week Low	RM0.61
Beta	0.94
1 Month Change	-22.45%
3 Month Change	-26.92%
1 Year Change	22.58%
3 Year Change	35.71%
5 Year Change	-7.32%
Change since IPO	-25.00%

Recent News & Updates

Jun 13

Cepatwawasan Group Berhad (KLSE:CEPAT) Is Doing The Right Things To Multiply Its Share Price

To find a multi-bagger stock, what are the underlying trends we should look for in a business? One common approach is...

Mar 17

These 4 Measures Indicate That Cepatwawasan Group Berhad (KLSE:CEPAT) Is Using Debt Safely

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

Shareholder Returns

	CEPAT	MY Food	MY Market
7D	-4.4%	-4.3%	-2.7%
1Y	22.6%	-1.5%	-9.2%

Return vs Industry: CEPAT exceeded the MY Food industry which returned -1.5% over the past year.

Return vs Market: CEPAT exceeded the MY Market which returned -9.2% over the past year.

Price Volatility

Is CEPAT's price volatile compared to industry and market?
CEPAT volatility
CEPAT Average Weekly Movement	7.1%
Food Industry Average Movement	4.9%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.3%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: CEPAT is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: CEPAT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2001	n/a	King-Seng Mah	https://cepatgroup.com

Cepatwawasan Group Berhad, an investment holding company, engages in the oil palm cultivation, milling, quarrying, and sale of oil palm products in Malaysia. The company operates through four segments: Plantation, Mill, Power Plant, and All other. As of December 31, 2021, it owned and operated approximately 10,280 hectares of oil palm plantations in Sabah, Malaysia.

Cepatwawasan Group Berhad Fundamentals Summary

How do Cepatwawasan Group Berhad's earnings and revenue compare to its market cap?
CEPAT fundamental statistics
Market Cap	RM234.81m
Earnings (TTM)	RM60.23m
Revenue (TTM)	RM407.04m

3.9x

P/E Ratio

0.6x

P/S Ratio

Is CEPAT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CEPAT income statement (TTM)
Revenue	RM407.04m
Cost of Revenue	RM319.91m
Gross Profit	RM87.13m
Other Expenses	RM26.90m
Earnings	RM60.23m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.19
Gross Margin	21.41%
Net Profit Margin	14.80%
Debt/Equity Ratio	12.2%

How did CEPAT perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

5%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CEPAT. This is calculated by dividing CEPAT's market cap by their current preferred multiple.
What is CEPAT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM234.81m

CEPAT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.5x
Enterprise Value/EBITDA	2.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

CEPAT PE Ratio vs Peers

The above table shows the PE ratio for CEPAT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.5x

Forward PE

Price-To-Earnings vs Peers: CEPAT is good value based on its Price-To-Earnings Ratio (3.9x) compared to the peer average (21.5x).

Price to Earnings Ratio vs Industry

How does CEPAT's PE Ratio compare vs other companies in the Malaysian Food Industry?

Price-To-Earnings vs Industry: CEPAT is good value based on its Price-To-Earnings Ratio (3.9x) compared to the MY Food industry average (12.2x)

Price to Earnings Ratio vs Fair Ratio

What is CEPAT'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.

CEPAT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	3.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CEPAT's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: CEPAT (MYR0.76) is trading below our estimate of fair value (MYR16.07)

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

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CEPAT's PEG Ratio to determine if it is good value.

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Future Growth

How is Cepatwawasan Group Berhad forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

-7.1%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cepatwawasan Group Berhad has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Examine whether Cepatwawasan Group Berhad is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Cepatwawasan Group Berhad performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

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

13.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CEPAT has high quality earnings.

Growing Profit Margin: CEPAT's current net profit margins (14.8%) are higher than last year (8.8%).

Past Earnings Growth Analysis

Earnings Trend: CEPAT's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: CEPAT's earnings growth over the past year (187.8%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: CEPAT earnings growth over the past year (187.8%) exceeded the Food industry 35.1%.

Return on Equity

High ROE: CEPAT's Return on Equity (15.9%) is considered low.

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Financial Health

How is Cepatwawasan Group 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: CEPAT's short term assets (MYR120.9M) exceed its short term liabilities (MYR48.5M).

Long Term Liabilities: CEPAT's short term assets (MYR120.9M) exceed its long term liabilities (MYR59.6M).

Debt to Equity History and Analysis

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

Reducing Debt: CEPAT's debt to equity ratio has reduced from 25.5% to 12.2% over the past 5 years.

Debt Coverage: CEPAT's debt is well covered by operating cash flow (185.4%).

Interest Coverage: CEPAT's interest payments on its debt are well covered by EBIT (38.6x coverage).

Balance Sheet

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Dividend

What is Cepatwawasan Group Berhad current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

1.32%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CEPAT's dividend (1.32%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (2.14%).

High Dividend: CEPAT's dividend (1.32%) is low compared to the top 25% of dividend payers in the MY market (4.98%).

Stability and Growth of Payments

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

Growing Dividend: CEPAT's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (5.1%), CEPAT's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (3.6%), CEPAT's dividend payments are thoroughly covered by cash flows.

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Management

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

7.4yrs

Average management tenure

CEO

King-Seng Mah (63 yo)

14.33yrs

Tenure

RM526,000

Compensation

Mr. King Seng Mah, DPMP, PMP, has been Managing Director at Cepatwawasan Group Bhd since February 27, 2008. Mr. Mah serves as Managing Director at Timah Resources Limited since September 16, 2015 and MHC P...

CEO Compensation Analysis

Compensation vs Market: King-Seng's total compensation ($USD119.37K) is about average for companies of similar size in the MY market ($USD113.67K).

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

Leadership Team

Experienced Management: CEPAT's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: CEPAT's board of directors are seasoned and experienced ( 14.1 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31