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BKAW

Batu Kawan Berhad KLSE:BKAWAN Stock Report

Last Price

RM20.00

Market Cap

RM7.9b

7D

-5.7%

1Y

-3.8%

Updated

30 Sep, 2022

Data

Company Financials
BKAWAN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends5/6

BKAWAN Stock Overview

Batu Kawan Berhad, an investment holding company, engages in the production and processing of palm products and natural rubber.

Batu Kawan Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Batu Kawan Berhad
Historical stock prices
Current Share PriceRM20.00
52 Week HighRM29.20
52 Week LowRM19.80
Beta0.65
1 Month Change-13.04%
3 Month Change-12.59%
1 Year Change-3.85%
3 Year Change27.39%
5 Year Change4.49%
Change since IPO1,380.30%

Recent News & Updates

Sep 12
A Look At The Intrinsic Value Of Batu Kawan Berhad (KLSE:BKAWAN)

A Look At The Intrinsic Value Of Batu Kawan Berhad (KLSE:BKAWAN)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Batu Kawan Berhad...

Aug 19
Is Batu Kawan Berhad (KLSE:BKAWAN) A Risky Investment?

Is Batu Kawan Berhad (KLSE:BKAWAN) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Jul 06
Batu Kawan Berhad (KLSE:BKAWAN) Is Doing The Right Things To Multiply Its Share Price

Batu Kawan Berhad (KLSE:BKAWAN) Is Doing The Right Things To Multiply Its Share Price

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Shareholder Returns

BKAWANMY ChemicalsMY Market
7D-5.7%-2.5%-2.7%
1Y-3.8%-7.5%-12.0%

Return vs Industry: BKAWAN exceeded the MY Chemicals industry which returned -7.5% over the past year.

Return vs Market: BKAWAN exceeded the MY Market which returned -12% over the past year.

Price Volatility

Is BKAWAN's price volatile compared to industry and market?
BKAWAN volatility
BKAWAN Average Weekly Movement3.2%
Chemicals Industry Average Movement5.4%
Market Average Movement5.3%
10% most volatile stocks in MY Market11.2%
10% least volatile stocks in MY Market2.4%

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

Volatility Over Time: BKAWAN's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1965n/aHau-Hian Leehttps://www.bkawan.com.my

Batu Kawan Berhad, an investment holding company, engages in the production and processing of palm products and natural rubber. It operates through four segments: Plantation, Manufacturing, Property Development, and Investment Holding/Others. In addition, the company engages in the manufacture and sale of methyl chloride, oleochemicals, alcohol ether sulphates, alcohol sulphates and sulphonic acids, and basic organic chemicals from agricultural products; and manufacturing and marketing of chloralkali and coagulant products, industrial and specialty chemicals, industrial cleaner and hydrogel coating products, soap noodles, industrial amides, fatty alcohol and methyl esters, palm phytonutrients and other palm derivatives, fatty acids and glycerine, triacetin, special paper chemicals, and surfactant.

Batu Kawan Berhad Fundamentals Summary

How do Batu Kawan Berhad's earnings and revenue compare to its market cap?
BKAWAN fundamental statistics
Market CapRM7.87b
Earnings (TTM)RM1.26b
Revenue (TTM)RM27.16b

6.2x

P/E Ratio

0.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BKAWAN income statement (TTM)
RevenueRM27.16b
Cost of RevenueRM22.54b
Gross ProfitRM4.62b
Other ExpensesRM3.36b
EarningsRM1.26b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.20
Gross Margin17.01%
Net Profit Margin4.64%
Debt/Equity Ratio72.0%

How did BKAWAN perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is BKAWAN 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 BKAWAN?

Other financial metrics that can be useful for relative valuation.

BKAWAN 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/Revenue0.9x
Enterprise Value/EBITDA5.3x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

BKAWAN PE Ratio vs Peers
The above table shows the PE ratio for BKAWAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.4x
SCIENTX Scientex Berhad
12.6x18.0%RM5.4b
LCTITAN Lotte Chemical Titan Holding Berhad
17.4x101.6%RM3.3b
PCHEM PETRONAS Chemicals Group Berhad
8.4x-6.5%RM67.1b
SAB Southern Acids (M) Berhad
5.7xn/aRM495.7m
BKAWAN Batu Kawan Berhad
6.2xn/aRM7.9b

Price-To-Earnings vs Peers: BKAWAN is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (11.4x).


Price to Earnings Ratio vs Industry

How does BKAWAN's PE Ratio compare vs other companies in the Asian Chemicals Industry?

Price-To-Earnings vs Industry: BKAWAN is good value based on its Price-To-Earnings Ratio (6.2x) compared to the Asian Chemicals industry average (15.5x)


Price to Earnings Ratio vs Fair Ratio

What is BKAWAN'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.

BKAWAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: BKAWAN (MYR20) is trading above our estimate of fair value (MYR11.99)

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


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 Batu Kawan 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


0.4%

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.


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


24.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BKAWAN has high quality earnings.

Growing Profit Margin: BKAWAN's current net profit margins (4.6%) are lower than last year (4.9%).


Past Earnings Growth Analysis

Earnings Trend: BKAWAN's earnings have grown significantly by 24.9% per year over the past 5 years.

Accelerating Growth: BKAWAN's earnings growth over the past year (36.3%) exceeds its 5-year average (24.9% per year).

Earnings vs Industry: BKAWAN earnings growth over the past year (36.3%) exceeded the Chemicals industry 13.1%.


Return on Equity

High ROE: BKAWAN's Return on Equity (17.1%) is considered low.


Discover strong past performing companies

Financial Health

How is Batu Kawan Berhad's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: BKAWAN's short term assets (MYR12.7B) exceed its short term liabilities (MYR7.2B).

Long Term Liabilities: BKAWAN's short term assets (MYR12.7B) exceed its long term liabilities (MYR9.6B).


Debt to Equity History and Analysis

Debt Level: BKAWAN's net debt to equity ratio (47.3%) is considered high.

Reducing Debt: BKAWAN's debt to equity ratio has increased from 40.5% to 72% over the past 5 years.

Debt Coverage: BKAWAN's debt is not well covered by operating cash flow (14.2%).

Interest Coverage: BKAWAN's interest payments on its debt are well covered by EBIT (10.5x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.50%

Current Dividend Yield

Dividend Yield vs Market

Batu Kawan Berhad Dividend Yield vs Market
How does Batu Kawan Berhad dividend yield compare to the market?
SegmentDividend Yield
Company (Batu Kawan Berhad)5.5%
Market Bottom 25% (MY)2.1%
Market Top 25% (MY)5.4%
Industry Average (Chemicals)5.8%
Analyst forecast in 3 Years (Batu Kawan Berhad)n/a

Notable Dividend: BKAWAN's dividend (5.5%) is higher than the bottom 25% of dividend payers in the MY market (2.12%).

High Dividend: BKAWAN's dividend (5.5%) is in the top 25% of dividend payers in the MY market (5.36%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (34.4%), BKAWAN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (89.4%), BKAWAN's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

8.5yrs

Average management tenure


CEO

Hau-Hian Lee (69 yo)

28.75yrs

Tenure

RM9,579,000

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

Hau-Hian Lee's Compensation vs Batu Kawan Berhad Earnings
How has Hau-Hian Lee's remuneration changed compared to Batu Kawan Berhad's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

RM1b

Mar 31 2022n/an/a

RM1b

Dec 31 2021n/an/a

RM1b

Sep 30 2021RM10mRM3m

RM1b

Jun 30 2021n/an/a

RM924m

Mar 31 2021n/an/a

RM750m

Dec 31 2020n/an/a

RM505m

Sep 30 2020RM7mRM3m

RM417m

Jun 30 2020n/an/a

RM429m

Mar 31 2020n/an/a

RM267m

Dec 31 2019n/an/a

RM330m

Sep 30 2019RM5mRM3m

RM363m

Jun 30 2019n/an/a

RM344m

Mar 31 2019n/an/a

RM400m

Dec 31 2018n/an/a

RM377m

Sep 30 2018RM5mRM2m

RM366m

Compensation vs Market: Hau-Hian's total compensation ($USD2.06M) is above average for companies of similar size in the MY market ($USD418.17K).

Compensation vs Earnings: Hau-Hian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BKAWAN's management team is seasoned and experienced (8.5 years average tenure).


Board Members

Experienced Board: BKAWAN's board of directors are considered experienced (5.5 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

What is the ownership structure of BKAWAN?
Owner TypeNumber of SharesOwnership Percentage
Institutions1,956,1500.5%
State or Government13,524,3003.4%
General Public59,137,30115.0%
Private Companies103,980,16626.4%
Individual Insiders214,963,94654.6%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 84.89% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
43.66%
Oi Hian Lee
171,838,612MYR3.4b0%no data
5.9%
Wan Hin Investments Sdn. Berhad
23,206,329MYR464.1m0%no data
5.7%
Eng Yeoh
22,429,038MYR448.6m0%no data
4.94%
Di-Yi Sdn Bhd
19,442,927MYR388.9m0%no data
4.15%
Soon Lee
16,316,780MYR326.3m0%no data
3.88%
Heah Seok Yeong Realty Sdn. Berhad
15,253,776MYR305.1m0%no data
3.44%
Lembaga Kemajuan Tanah Persekutuan
13,524,300MYR270.5m0%no data
2.33%
Lee Chan Investments Sdn Bhd.
9,159,275MYR183.2m0%no data
2.03%
Decarats Mg Sdn Bhd
8,000,000MYR160.0m0%no data
1.56%
Teoh Guat Eng Holdings Sdn Bhd
6,132,188MYR122.6m0%no data
1.2%
Key Development Sdn Bhd
4,735,911MYR94.7m0%no data
0.86%
Cengal Emas Sdn Bhd
3,390,996MYR67.8m0%no data
0.74%
Congleton Holdings Sdn Bhd
2,899,697MYR58.0m0%no data
0.73%
Malay Rubber Plantations (M) Sdn Bhd
2,868,172MYR57.4m0%no data
0.58%
Steppe Structure Sdn Bhd
2,284,728MYR45.7m0%no data
0.57%
Chinchoo Investment Sdn Bhd
2,229,619MYR44.6m0%no data
0.45%
Gan Teng Siew Realty Sdn Bhd
1,764,918MYR35.3m0%no data
0.42%
Oi Lee
1,649,771MYR33.0m0%no data
0.41%
Dimensional Fund Advisors LP
1,623,450MYR32.5m0%no data
0.4%
Hau-Hian Lee
1,583,444MYR31.7m0%no data
0.39%
Lyne Ching Sdn Bhd
1,525,377MYR30.5m0%no data
0.29%
Nyit Kean Lee
1,124,830MYR22.5m0%no data
0.28%
Rengo Malay Estate Sendirian Berhad
1,086,253MYR21.7m0%no data
0.0029%
Ban Lim
11,200MYR224.0k0%no data
0.0026%
Yuan Lee
10,271MYR205.4k0%no data

Company Information

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


Key Information

  • Name: Batu Kawan Berhad
  • Ticker: BKAWAN
  • Exchange: KLSE
  • Founded: 1965
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Implied Market Cap: RM7.871b
  • Shares outstanding: 393.56m
  • Website: https://www.bkawan.com.my

Location

  • Batu Kawan Berhad
  • Wisma Taiko
  • No. 1, Jalan S.P. Seenivasagam
  • Ipoh
  • Perak
  • 30000
  • Malaysia


Listings

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/09/30


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.