MELE

Melewar Industrial Group BerhadKLSE:MELEWAR Stock Report

Market Cap

RM168.9m

7D

-10.5%

1Y

108.9%

Updated

18 Sep, 2021

Data

Company Financials
MELEWAR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance3/6
Financial Health6/6
Dividends4/6

MELEWAR Overview

Melewar Industrial Group Berhad, an investment holding company, engages in manufacturing, distributing, and trading steel and iron products in Malaysia.

Price History & Performance

Summary of all time highs, changes and price drops for Melewar Industrial Group Berhad
Historical stock prices
Current Share PriceRM0.47
52 Week HighRM0.19
52 Week LowRM0.78
Beta1.93
1 Month Change-7.84%
3 Month Change-19.66%
1 Year Change108.89%
3 Year Change203.23%
5 Year Change-18.97%
Change since IPO-76.35%

Recent News & Updates

Aug 26
Melewar Industrial Group Berhad (KLSE:MELEWAR) Seems To Use Debt Quite Sensibly

Melewar Industrial Group Berhad (KLSE:MELEWAR) Seems To Use Debt Quite Sensibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Jul 19
Returns On Capital At Melewar Industrial Group Berhad (KLSE:MELEWAR) Have Hit The Brakes

Returns On Capital At Melewar Industrial Group Berhad (KLSE:MELEWAR) Have Hit The Brakes

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

May 27
Melewar Industrial Group Berhad (KLSE:MELEWAR) Has A Somewhat Strained Balance Sheet

Melewar Industrial Group Berhad (KLSE:MELEWAR) Has A Somewhat Strained Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

MELEWARMY Metals and MiningMY Market
7D-10.5%-1.6%-1.0%
1Y108.9%120.5%5.9%

Return vs Industry: MELEWAR underperformed the MY Metals and Mining industry which returned 120.5% over the past year.

Return vs Market: MELEWAR exceeded the MY Market which returned 5.9% over the past year.

Price Volatility

Is MELEWAR's price volatile compared to industry and market?
MELEWAR volatility
MELEWAR Beta1.93
Industry Beta1.21
Market Beta1

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

Volatility Over Time: MELEWAR's weekly volatility has decreased from 16% to 7% over the past year.

About the Company

FoundedEmployeesCEOWebsite
1969n/an/ahttps://www.melewar-mig.com

Melewar Industrial Group Berhad, an investment holding company, engages in manufacturing, distributing, and trading steel and iron products in Malaysia. It operates through Steel Tube, Cold Rolled, and Engineering segments. The company offers black and carbon steel pipes, and square and rectangular hollow sections for bicycle, vehicles, agricultural implements, civil engineering, steel towers, furniture, mining industries, etc.; and gas and water pipes for carrying gas, water, steam, oil, air, etc. It also provides galvanized steel conduits for electrical wiring; light gauge steel plain and lipped channels for civil engineering, transportation and electrical communication equipment, machinery, etc.; and hot rolled steel plates and sheets, and cold rolled steel sheets for furniture constructions, engineering, electrical appliances, etc. In addition, the company offers welded steel pipes; carbon steel pipes for ordinary piping and machine structural purposes; square and rectangular hollow sections; and mild steel plain channels, as well as hot-dip galvanizing services.

Melewar Industrial Group Berhad Fundamentals Summary

How do Melewar Industrial Group Berhad's earnings and revenue compare to its market cap?
MELEWAR fundamental statistics
Market CapRM168.93m
Earnings (TTM)RM42.39m
Revenue (TTM)RM738.34m

4.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MELEWAR income statement (TTM)
RevenueRM738.34m
Cost of RevenueRM625.91m
Gross ProfitRM112.43m
ExpensesRM70.04m
EarningsRM42.39m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin15.23%
Net Profit Margin5.74%
Debt/Equity Ratio18.2%

How did MELEWAR perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

19%

Payout Ratio

Valuation

Is Melewar Industrial Group Berhad undervalued compared to its fair value and its price relative to the market?

11.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MELEWAR (MYR0.47) is trading below our estimate of fair value (MYR0.53)

Significantly Below Fair Value: MELEWAR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MELEWAR is good value based on its PE Ratio (4x) compared to the MY Metals and Mining industry average (9x).

PE vs Market: MELEWAR is good value based on its PE Ratio (4x) compared to the MY market (16.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MELEWAR is good value based on its PB Ratio (0.5x) compared to the MY Metals and Mining industry average (0.8x).


Future Growth

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

31.1%

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 Melewar Industrial 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.


Past Performance

How has Melewar Industrial Group Berhad performed over the past 5 years?

59.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MELEWAR has high quality earnings.

Growing Profit Margin: MELEWAR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MELEWAR has become profitable over the past 5 years, growing earnings by 59.1% per year.

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

Earnings vs Industry: MELEWAR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (237.9%).


Return on Equity

High ROE: MELEWAR's Return on Equity (11.5%) is considered low.


Financial Health

How is Melewar Industrial Group Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: MELEWAR's short term assets (MYR375.6M) exceed its short term liabilities (MYR208.0M).

Long Term Liabilities: MELEWAR's short term assets (MYR375.6M) exceed its long term liabilities (MYR90.1M).


Debt to Equity History and Analysis

Debt Level: MELEWAR's debt to equity ratio (18.2%) is considered satisfactory.

Reducing Debt: MELEWAR's debt to equity ratio has reduced from 22.5% to 18.2% over the past 5 years.

Debt Coverage: MELEWAR's debt is well covered by operating cash flow (56.7%).

Interest Coverage: MELEWAR's interest payments on its debt are well covered by EBIT (34.7x coverage).


Balance Sheet


Dividend

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

4.74%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MELEWAR's dividend (4.74%) is higher than the bottom 25% of dividend payers in the MY market (1.53%).

High Dividend: MELEWAR's dividend (4.74%) is in the top 25% of dividend payers in the MY market (4.16%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.9%), MELEWAR's dividend payments are well 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?

13.0yrs

Average management tenure


CEO

Melewar Industrial Group Berhad has no CEO, or we have no data on them.


Leadership Team

Experienced Management: MELEWAR's management team is seasoned and experienced (13 years average tenure).


Board Members

Experienced Board: MELEWAR's board of directors are considered experienced (7.8 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

Melewar Industrial Group Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Melewar Industrial Group Berhad
  • Ticker: MELEWAR
  • Exchange: KLSE
  • Founded: 1969
  • Industry: Steel
  • Sector: Materials
  • Market Cap: RM168.926m
  • Shares outstanding: 359.42m
  • Website: https://www.melewar-mig.com

Number of Employees


Location

  • Melewar Industrial Group Berhad
  • No. 566 Jalan Ipoh
  • 15th Floor
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 51200
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 11:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.