Rimbunan Sawit Berhad (KLSE:RSAWIT) - Share price, News & Analysis

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

RSAWIT (MYR0.16) is trading below our estimate of [[fair value]] (MYR0.48)

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

RSAWIT Stock Overview

Rimbunan Sawit Berhad, an investment holding company, engages in the cultivation of oil palm in Malaysia.

Rewards

Trading at 67.7% below our estimate of its fair value

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Large one-off items impacting financial results

Does not have a meaningful market cap (MYR316M)

Rimbunan Sawit Berhad Competitors

PLS Plantations Berhad

KLSE:PLS

RM369.7m

Kluang Rubber Company (Malaya) Berhad

KLSE:KLUANG

RM244.5m

Negri Sembilan Oil Palms Berhad

KLSE:NSOP

RM249.2m

Cepatwawasan Group Berhad

KLSE:CEPAT

RM214.7m

Price History & Performance

Summary of all time highs, changes and price drops for Rimbunan Sawit Berhad
Historical stock prices
Current Share Price	RM0.15
52 Week High	RM0.30
52 Week Low	RM0.15
Beta	1.84
1 Month Change	0%
3 Month Change	-35.42%
1 Year Change	-32.61%
3 Year Change	0%
5 Year Change	-64.37%
Change since IPO	-71.30%

Recent News & Updates

Jun 06

Rimbunan Sawit Berhad's (KLSE:RSAWIT) Promising Earnings May Rest On Soft Foundations

Despite posting some strong earnings, the market for Rimbunan Sawit Berhad's ( KLSE:RSAWIT ) stock hasn't moved much...

May 11

Is Rimbunan Sawit Berhad (KLSE:RSAWIT) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	RSAWIT	MY Food	MY Market
7D	-3.1%	2.2%	1.7%
1Y	-32.6%	5.1%	-4.0%

Return vs Industry: RSAWIT underperformed the MY Food industry which returned 5.1% over the past year.

Return vs Market: RSAWIT underperformed the MY Market which returned -4% over the past year.

Price Volatility

Is RSAWIT's price volatile compared to industry and market?
RSAWIT volatility
RSAWIT Average Weekly Movement	6.7%
Food Industry Average Movement	4.5%
Market Average Movement	5.6%
10% most volatile stocks in MY Market	11.8%
10% least volatile stocks in MY Market	2.7%

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

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

About the Company

Founded	Employees	CEO	Website
1993	n/a	n/a	https://www.rsb.com.my

Rimbunan Sawit Berhad, an investment holding company, engages in the cultivation of oil palm in Malaysia. It offers crude palm oil, fresh fruit bunches, and palm kernel. The company owns approximately 69,909 hectares of plantation land in Miri, Kuching, and Sibu, Sarawak; and operates a palm oil mill in Bok Land District, Miri, Sarawak.

Rimbunan Sawit Berhad Fundamentals Summary

How do Rimbunan Sawit Berhad's earnings and revenue compare to its market cap?
RSAWIT fundamental statistics
Market Cap	RM326.68m
Earnings (TTM)	RM7.91m
Revenue (TTM)	RM601.19m

40.1x

P/E Ratio

0.5x

P/S Ratio

Is RSAWIT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
RSAWIT income statement (TTM)
Revenue	RM601.19m
Cost of Revenue	RM533.46m
Gross Profit	RM67.74m
Other Expenses	RM59.83m
Earnings	RM7.91m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.0039
Gross Margin	11.27%
Net Profit Margin	1.32%
Debt/Equity Ratio	100.7%

How did RSAWIT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for RSAWIT. This is calculated by dividing RSAWIT's market cap by their current preferred multiple.
What is RSAWIT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM326.68m

RSAWIT 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	1.1x
Enterprise Value/EBITDA	8.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

RSAWIT PE Ratio vs Peers

The above table shows the PE ratio for RSAWIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.9x
PLS PLS Plantations Berhad	12.2x	n/a	RM369.7m
KLUANG Kluang Rubber Company (Malaya) Berhad	23.6x	n/a	RM244.5m
NSOP Negri Sembilan Oil Palms Berhad	8.6x	n/a	RM249.2m
CEPAT Cepatwawasan Group Berhad	3.2x	n/a	RM214.7m
RSAWIT Rimbunan Sawit Berhad	40.1x	n/a	RM316.5m

Price-To-Earnings vs Peers: RSAWIT is expensive based on its Price-To-Earnings Ratio (40.1x) compared to the peer average (11.9x).

Price to Earnings Ratio vs Industry

How does RSAWIT's PE Ratio compare vs other companies in the MY Food Industry?

Price-To-Earnings vs Industry: RSAWIT is expensive based on its Price-To-Earnings Ratio (40.1x) compared to the MY Food industry average (12x)

Price to Earnings Ratio vs Fair Ratio

What is RSAWIT'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.

RSAWIT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	40.1x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: RSAWIT (MYR0.16) is trading below our estimate of fair value (MYR0.48)

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

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Rimbunan Sawit 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

-7.5%

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 Rimbunan Sawit 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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Past Performance

How has Rimbunan Sawit Berhad performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

26.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RSAWIT has a large one-off gain of MYR4.2M impacting its March 31 2022 financial results.

Growing Profit Margin: RSAWIT became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: RSAWIT has become profitable over the past 5 years, growing earnings by 26.8% per year.

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

Earnings vs Industry: RSAWIT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (46%).

Return on Equity

High ROE: RSAWIT's Return on Equity (1.9%) is considered low.

Discover strong past performing companies

Financial Health

How is Rimbunan Sawit Berhad's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

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

Financial Position Analysis

Short Term Liabilities: RSAWIT's short term assets (MYR71.8M) do not cover its short term liabilities (MYR281.9M).

Long Term Liabilities: RSAWIT's short term assets (MYR71.8M) do not cover its long term liabilities (MYR232.4M).

Debt to Equity History and Analysis

Debt Level: RSAWIT's net debt to equity ratio (98.8%) is considered high.

Reducing Debt: RSAWIT's debt to equity ratio has increased from 71.3% to 100.7% over the past 5 years.

Debt Coverage: RSAWIT's debt is not well covered by operating cash flow (19.5%).

Interest Coverage: RSAWIT's interest payments on its debt are not well covered by EBIT (1.2x coverage).

Balance Sheet

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Dividend

What is Rimbunan Sawit 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
Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate RSAWIT'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 RSAWIT's dividends per share have been stable in the past.

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

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

Discover strong dividend paying companies

Management

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

16.5yrs

Average board tenure

CEO

Rimbunan Sawit Berhad has no CEO, or we have no data on them.

Board Members

Experienced Board: RSAWIT's board of directors are seasoned and experienced ( 16.5 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	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31