KLSE:BKAWAN

Stock Analysis Report

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Executive Summary

Batu Kawan Berhad, an investment holding company, manufactures and sells chemicals in Malaysia and internationally. More Details


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Batu Kawan Berhad's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

7.2%

BKAWAN

0.9%

MY Chemicals

0.6%

MY Market


1 Year Return

11.7%

BKAWAN

6.0%

MY Chemicals

3.7%

MY Market

Return vs Industry: BKAWAN exceeded the MY Chemicals industry which returned 6% over the past year.

Return vs Market: BKAWAN exceeded the MY Market which returned 3.7% over the past year.


Shareholder returns

BKAWANIndustryMarket
7 Day7.2%0.9%0.6%
30 Day15.9%14.7%9.0%
90 Day16.5%23.4%4.5%
1 Year15.9%11.7%8.9%6.0%6.9%3.7%
3 Year-1.9%-11.3%1.9%-7.6%0.5%-8.6%
5 Year19.8%2.3%29.3%11.4%11.3%-7.1%

Long-Term Price Volatility Vs. Market

How volatile is Batu Kawan Berhad's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Batu Kawan Berhad undervalued compared to its fair value and its price relative to the market?

33.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BKAWAN (MYR17.52) is trading below our estimate of fair value (MYR26.16)

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


Price To Earnings Ratio

PE vs Industry: BKAWAN is good value based on its PE Ratio (16.6x) compared to the MY Chemicals industry average (26.8x).

PE vs Market: BKAWAN is good value based on its PE Ratio (16.6x) compared to the MY market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BKAWAN is good value based on its PB Ratio (1.2x) compared to the MY Chemicals industry average (1.3x).


Next Steps

Future Growth

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

34.0%

Forecasted Materials 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 Batu Kawan 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.


Next Steps

Past Performance

How has Batu Kawan Berhad performed over the past 5 years?

-17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BKAWAN has high quality earnings.

Growing Profit Margin: BKAWAN's current net profit margins (2.6%) are higher than last year (2.3%).


Past Earnings Growth Analysis

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

Accelerating Growth: BKAWAN's earnings growth over the past year (14.9%) exceeds its 5-year average (-17.2% per year).

Earnings vs Industry: BKAWAN earnings growth over the past year (14.9%) underperformed the Chemicals industry 19%.


Return on Equity

High ROE: BKAWAN's Return on Equity (7.2%) is considered low.


Next Steps

Financial Health

How is Batu Kawan Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: BKAWAN's short term assets (MYR8.9B) exceed its short term liabilities (MYR2.8B).

Long Term Liabilities: BKAWAN's short term assets (MYR8.9B) exceed its long term liabilities (MYR6.9B).


Debt to Equity History and Analysis

Debt Level: BKAWAN's debt to equity ratio (54.8%) is considered high.

Reducing Debt: BKAWAN's debt to equity ratio has increased from 46.7% to 54.8% over the past 5 years.

Debt Coverage: BKAWAN's debt is well covered by operating cash flow (20.6%).

Interest Coverage: BKAWAN's interest payments on its debt are well covered by EBIT (5.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Batu Kawan Berhad current dividend yield, its reliability and sustainability?

3.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BKAWAN's dividend (3.42%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).

High Dividend: BKAWAN's dividend (3.42%) is low compared to the top 25% of dividend payers in the MY market (4.4%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57%), BKAWAN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.7yrs

Average management tenure


CEO

Hau-Hian Lee (67 yo)

26.92yrs

Tenure

RM5,082,000

Compensation

Mr. Hau-Hian Lee, D.P.M.P., serves as Managing Director of Batu Kawan Berhad. Mr. Lee serves as President of the Perak Chinese Maternity Association and the Treasurer of the Perak Entrepreneurial Skills & ...


CEO Compensation Analysis

Compensation vs Market: Hau-Hian's total compensation ($USD1.25M) is above average for companies of similar size in the MY market ($USD503.75K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hau-Hian Lee
MD & Executive Director26.92yrsRM5.08m0.40%
MYR 27.4m
Swee Goh
CFO & Joint Secretary1.67yrsno datano data
Miow Yap
Joint Company Secretary7.67yrsno datano data
Chiew Cindy
Joint Company Secretary5.67yrsno datano data
Thean Tan
Executive Director of Klk Land Sdn Bhdno datano datano data
Madhev Bala Subramaniam
Managing Director of Oleochemical Division - Kuala Lumpur Kepong Berhadno datano datano data

6.7yrs

Average Tenure

58.5yo

Average Age

Experienced Management: BKAWAN's management team is seasoned and experienced (6.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hau-Hian Lee
MD & Executive Director26.92yrsRM5.08m0.40%
MYR 27.4m
Chek Tin Quah
Independent Non-Executive Director10.67yrsRM192.00kno data
Oi Hian Lee
Non-Independent Non-Executive Chairmanno dataRM237.00k43.58%
MYR 3.0b
Eng Yeoh
Senior Independent Non-Executive Director6yrsRM201.00k5.62%
MYR 386.3m
Rastam Bin Mohd Isa
Independent Non-Executive Director3.67yrsRM171.00kno data
Tunku Binti Raja Muhd Alias
Independent Non-Executive Director2.58yrsRM185.00kno data

6.0yrs

Average Tenure

69yo

Average Age

Experienced Board: BKAWAN's board of directors are considered experienced (6 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.


Top Shareholders

Company Information

Batu Kawan Berhad's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Batu Kawan Berhad
  • Ticker: BKAWAN
  • Exchange: KLSE
  • Founded: 1965
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: RM6.876b
  • Shares outstanding: 397.48m
  • Website: https://www.bkawan.com.my

Location

  • Batu Kawan Berhad
  • Bangunan Mayban Trust Ipoh
  • Level 9
  • Ipoh
  • Perak
  • 30000
  • Malaysia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKAWANKLSE (Bursa Malaysia)YesOrdinary SharesMYMYRJan 1992

Biography

Batu Kawan Berhad, an investment holding company, manufactures and sells chemicals in Malaysia and internationally. It operates through four segments: Plantation, Manufacturing, Property Development, and I...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/30 11:09
End of Day Share Price2020/11/30 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.