Hil Industries Berhad (KLSE:HIL) - Share price, News & Analysis

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

HIL (MYR0.89) is trading below our estimate of [[fair value]] (MYR2.69)

HIL fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	3/6

HIL Stock Overview

Hil Industries Berhad, an investment holding company, manufactures and sells industrial and domestic molded plastic products in Malaysia and the People’s Republic of China.

Rewards

Trading at 66.9% below our estimate of its fair value

Earnings have grown 15.9% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Does not have a meaningful market cap (MYR295M)

Hil Industries Berhad Competitors

RGT Berhad

KLSE:RGTBHD

RM326.4m

Luster Industries Bhd

KLSE:LUSTER

RM256.9m

DPI Holdings Berhad

KLSE:DPIH

RM182.5m

Southern Acids (M) Berhad

KLSE:SAB

RM519.0m

Price History & Performance

Summary of all time highs, changes and price drops for Hil Industries Berhad
Historical stock prices
Current Share Price	RM0.89
52 Week High	RM1.12
52 Week Low	RM0.80
Beta	0.62
1 Month Change	-3.26%
3 Month Change	-1.66%
1 Year Change	-5.32%
3 Year Change	67.93%
5 Year Change	-7.13%
Change since IPO	-15.91%

Shareholder Returns

	HIL	MY Chemicals	MY Market
7D	-3.8%	-2.6%	-1.2%
1Y	-5.3%	9.3%	-8.7%

Return vs Industry: HIL underperformed the MY Chemicals industry which returned 9.3% over the past year.

Return vs Market: HIL exceeded the MY Market which returned -8.7% over the past year.

Price Volatility

Is HIL's price volatile compared to industry and market?
HIL volatility
HIL Average Weekly Movement	6.7%
Chemicals Industry Average Movement	5.0%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.9%

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

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

About the Company

Founded	Employees	CEO	Website
1969	n/a	Milton Norman Ng	https://www.hil.com.my

Hil Industries Berhad, an investment holding company, manufactures and sells industrial and domestic molded plastic products in Malaysia and the People’s Republic of China. It operates through Manufacturing; Property Development and Management; and Trading, Services and Others segments. The company offers various services, including design and development, mold and dies fabrication, injection molding, in mold decoration, spray painting, silk screen and tempo printing, hi-frequency and vibration welding, direct digital printing, surface decoration, assembly, blow molding, weld lineless and high gloss injection molding, headlining and die-cutting, and quality control assurance.

Hil Industries Berhad Fundamentals Summary

How do Hil Industries Berhad's earnings and revenue compare to its market cap?
HIL fundamental statistics
Market Cap	RM295.43m
Earnings (TTM)	RM30.81m
Revenue (TTM)	RM174.12m

9.6x

P/E Ratio

1.7x

P/S Ratio

Is HIL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIL income statement (TTM)
Revenue	RM174.12m
Cost of Revenue	RM123.32m
Gross Profit	RM50.80m
Other Expenses	RM19.99m
Earnings	RM30.81m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.093
Gross Margin	29.18%
Net Profit Margin	17.70%
Debt/Equity Ratio	0%

How did HIL perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

22%

Payout Ratio

Does HIL pay a reliable dividends?

See HIL dividend history and benchmarks

When do you need to buy HIL by to receive an upcoming dividend?
Hil Industries Berhad dividend dates
Ex Dividend Date	Jun 29 2022
Dividend Pay Date	Jul 15 2022
Days until Ex dividend	1 day
Days until Dividend pay date	17 days

Does HIL pay a reliable dividends?

See HIL dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is HIL 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 HIL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for HIL. This is calculated by dividing HIL's market cap by their current preferred multiple.
What is HIL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM295.43m

HIL 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	1x
Enterprise Value/EBITDA	4.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

HIL PE Ratio vs Peers

The above table shows the PE ratio for HIL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	30.8x
RGTBHD RGT Berhad	59.6x	n/a	RM326.4m
LUSTER Luster Industries Bhd	29.8x	n/a	RM256.9m
DPIH DPI Holdings Berhad	28.4x	n/a	RM182.5m
SAB Southern Acids (M) Berhad	5.5x	n/a	RM519.0m
HIL Hil Industries Berhad	9.6x	n/a	RM295.4m

Forward PE

Price-To-Earnings vs Peers: HIL is good value based on its Price-To-Earnings Ratio (9.6x) compared to the peer average (30.8x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: HIL is good value based on its Price-To-Earnings Ratio (9.6x) compared to the MY Chemicals industry average (12.6x)

Price to Earnings Ratio vs Fair Ratio

What is HIL'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.

HIL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.6x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: HIL (MYR0.89) is trading below our estimate of fair value (MYR2.69)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Hil Industries 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

15.0%

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 Hil Industries 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

Examine whether Hil Industries 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 Hil Industries Berhad performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

15.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIL has high quality earnings.

Growing Profit Margin: HIL's current net profit margins (17.7%) are higher than last year (16.1%).

Past Earnings Growth Analysis

Earnings Trend: HIL's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: HIL's earnings growth over the past year (15.6%) is below its 5-year average (15.9% per year).

Earnings vs Industry: HIL earnings growth over the past year (15.6%) underperformed the Chemicals industry 15.6%.

Return on Equity

High ROE: HIL's Return on Equity (7.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Hil Industries 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: HIL's short term assets (MYR389.0M) exceed its short term liabilities (MYR42.0M).

Long Term Liabilities: HIL's short term assets (MYR389.0M) exceed its long term liabilities (MYR23.5M).

Debt to Equity History and Analysis

Debt Level: HIL is debt free.

Reducing Debt: HIL has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

Debt Coverage: HIL has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HIL has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Hil Industries Berhad current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

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

2.25%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: HIL's dividend (2.25%) is higher than the bottom 25% of dividend payers in the MY market (2.15%).

High Dividend: HIL's dividend (2.25%) is low compared to the top 25% of dividend payers in the MY market (4.94%).

Stability and Growth of Payments

Stable Dividend: HIL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: HIL's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (21.5%), HIL's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (26.4%), HIL's dividend payments are well covered by cash flows.

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Management

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

4.9yrs

Average management tenure

CEO

Milton Norman Ng (51 yo)

22.92yrs

Tenure

RM87,000

Compensation

Mr. Kwee Leong Ng, also known as Milton Norman has been the Managing Director and Executive Director of Amverton Berhad since January 22, 2018. He has been the Managing Director of HIL Industries Berhad si...

CEO Compensation Analysis

Compensation vs Market: Milton Norman's total compensation ($USD19.78K) is below average for companies of similar size in the MY market ($USD113.68K).

Compensation vs Earnings: Milton Norman's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: HIL's management team is considered experienced (4.9 years average tenure).

Board Members

Experienced Board: HIL's board of directors are seasoned and experienced ( 14.5 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	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31