New Risk • May 11
New major risk - Revenue and earnings growth Earnings have declined by 15% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 193% Cash payout ratio: 147% Earnings have declined by 15% per year over the past 5 years. Minor Risk Market cap is less than US$100m (RM263.1m market cap, or US$67.0m). Declared Dividend • May 11
First quarter dividend of RM0.01 announced Dividend of RM0.01 is the same as last year. Ex-date: 16th June 2026 Payment date: 8th July 2026 Dividend yield will be 5.7%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (193% earnings payout ratio) nor is it covered by cash flows (147% cash payout ratio). The dividend has increased by an average of 6.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 114% to bring the payout ratio under control. However, EPS has declined by 16% over the last 5 years so the company would need to reverse this trend. Announcement • Apr 29
SLP Resources Berhad, Annual General Meeting, Jun 10, 2026 SLP Resources Berhad, Annual General Meeting, Jun 10, 2026, at 11:00 Singapore Standard Time. Location: iconic 1 & 2, level 7, iconic hotel, no. 71, jalan icon city, icon city, 14000 bukit mertajam. penang, Malaysia Price Target Changed • Apr 23
Price target increased by 11% to RM0.90 Up from RM0.81, the current price target is provided by 1 analyst. New target price is 11% above last closing price of RM0.81. Stock is down 6.4% over the past year. The company posted earnings per share of RM0.027 last year. Upcoming Dividend • Mar 12
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 16 March 2026. Payment date: 08 April 2026. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.1%. Within top quartile of Malaysian dividend payers (5.5%). Higher than average of industry peers (2.7%). Declared Dividend • Feb 25
Fourth quarter dividend of RM0.013 announced Dividend of RM0.013 is the same as last year. Ex-date: 16th March 2026 Payment date: 8th April 2026 Dividend yield will be 6.1%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (178% earnings payout ratio) nor is it covered by cash flows (213% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 98% to bring the payout ratio under control. EPS is expected to grow by 75% over the next 2 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. New Risk • Feb 24
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 122% Cash payout ratio: 213% Dividend yield: 6.1% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 122% Cash payout ratio: 213% Minor Risks Profit margins are more than 30% lower than last year (5.6% net profit margin). Market cap is less than US$100m (RM242.5m market cap, or US$62.2m). Reported Earnings • Feb 24
Full year 2025 earnings released: EPS: RM0.027 (vs RM0.044 in FY 2024) Full year 2025 results: EPS: RM0.027 (down from RM0.044 in FY 2024). Revenue: RM152.1m (down 5.9% from FY 2024). Net income: RM8.45m (down 40% from FY 2024). Profit margin: 5.6% (down from 8.7% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.8% p.a. on average during the next 2 years, compared to a 12% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Board Change • Dec 30
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 5 highly experienced directors. 3 independent directors (4 non-independent directors). Independent and Non Executive Director Kean Lee was the last independent director to join the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Nov 28
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 05 December 2025. Payment date: 06 January 2026. The company is paying out more than 100% of its profits and is paying out 78% of its cash flow. Trailing yield: 6.0%. Within top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (3.4%). Declared Dividend • Nov 10
Third quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 5th December 2025 Payment date: 8th January 2026 Dividend yield will be 6.1%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (122% earnings payout ratio). However, it is covered by cash flows (78% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 35% to bring the payout ratio under control. EPS is expected to grow by 18% over the next year, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 08
Third quarter 2025 earnings released: EPS: RM0.01 (vs RM0.005 in 3Q 2024) Third quarter 2025 results: EPS: RM0.01 (up from RM0.005 in 3Q 2024). Revenue: RM37.6m (down 2.2% from 3Q 2024). Net income: RM3.05m (up 96% from 3Q 2024). Profit margin: 8.1% (up from 4.0% in 3Q 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 1.2% p.a. on average during the next 2 years, compared to a 11% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. New Risk • Sep 18
New major risk - Share price stability The company's share price has been highly volatile over the past 3 months. It is more volatile than 90% of Malaysian stocks, typically moving 10% a week. This is considered a major risk. Share price volatility increases the risk of potential losses in the short-term as the stock tends to have larger drops in price more frequently than other stocks. It may also indicate the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. Currently, the following risks have been identified for the company: Major Risk Share price has been highly volatile over the past 3 months (10% average weekly change). Minor Risks Dividend is not well covered by earnings (138% payout ratio). Market cap is less than US$100m (RM269.4m market cap, or US$64.3m). Upcoming Dividend • Sep 03
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 10 September 2025. Payment date: 09 October 2025. The company is paying out more than 100% of its profits and is paying out 76% of its cash flow. Trailing yield: 5.5%. Lower than top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (3.8%). Price Target Changed • Aug 12
Price target decreased by 11% to RM0.89 Down from RM1.00, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of RM0.87. Stock is down 2.2% over the past year. The company is forecast to post earnings per share of RM0.035 for next year compared to RM0.044 last year. Declared Dividend • Aug 11
Second quarter dividend of RM0.013 announced Dividend of RM0.013 is the same as last year. Ex-date: 10th September 2025 Payment date: 9th October 2025 Dividend yield will be 5.5%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (138% earnings payout ratio). However, it is covered by cash flows (76% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 54% to bring the payout ratio under control. However, EPS has declined by 9.5% over the last 5 years so the company would need to reverse this trend. Reported Earnings • Aug 09
Second quarter 2025 earnings released: EPS: RM0.006 (vs RM0.01 in 2Q 2024) Second quarter 2025 results: EPS: RM0.006 (down from RM0.01 in 2Q 2024). Revenue: RM39.8m (down 4.8% from 2Q 2024). Net income: RM1.73m (down 46% from 2Q 2024). Profit margin: 4.4% (down from 7.7% in 2Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.2% p.a. on average during the next 2 years, compared to a 9.5% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Jun 05
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 12 June 2025. Payment date: 09 July 2025. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 5.6%. Within top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (4.1%). Declared Dividend • May 13
First quarter dividend of RM0.01 announced Dividend of RM0.01 is the same as last year. Ex-date: 12th June 2025 Payment date: 9th July 2025 Dividend yield will be 5.4%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (122% earnings payout ratio) nor is it covered by cash flows (109% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 35% to bring the payout ratio under control. EPS is expected to grow by 16% over the next year, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • May 10
First quarter 2025 earnings released: EPS: RM0.01 (vs RM0.016 in 1Q 2024) First quarter 2025 results: EPS: RM0.01 (down from RM0.016 in 1Q 2024). Revenue: RM41.1m (flat on 1Q 2024). Net income: RM3.27m (down 34% from 1Q 2024). Profit margin: 8.0% (down from 12% in 1Q 2024). Revenue is forecast to grow 5.1% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Announcement • Apr 29
SLP Resources Berhad, Annual General Meeting, Jun 11, 2025 SLP Resources Berhad, Annual General Meeting, Jun 11, 2025, at 11:00 Singapore Standard Time. Location: iconic 1 & 2, level 7, iconic hotel, 71 jalan icon city, icon city, 14000 bukit mertajam, penang, Malaysia Upcoming Dividend • Mar 13
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 17 March 2025. Payment date: 09 April 2025. The company is paying out more than 100% of its profits and is paying out 76% of its cash flow. Trailing yield: 5.3%. Lower than top quartile of Malaysian dividend payers (5.7%). Higher than average of industry peers (3.7%). Price Target Changed • Mar 01
Price target increased by 9.5% to RM1.00 Up from RM0.91, the current price target is provided by 1 analyst. New target price is 15% above last closing price of RM0.87. Stock is down 8.4% over the past year. The company is forecast to post earnings per share of RM0.05 for next year compared to RM0.089 last year. Declared Dividend • Feb 27
Fourth quarter dividend of RM0.013 announced Dividend of RM0.013 is the same as last year. Ex-date: 17th March 2025 Payment date: 9th April 2025 Dividend yield will be 5.5%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (135% earnings payout ratio). However, it is well covered by cash flows (38% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 50% to bring the payout ratio under control. However, EPS is expected to decline by 48% over the next 2 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Feb 26
Full year 2024 earnings released: EPS: RM0.089 (vs RM0.033 in FY 2023) Full year 2024 results: EPS: RM0.089 (up from RM0.033 in FY 2023). Revenue: RM323.3m (up 99% from FY 2023). Net income: RM28.1m (up 165% from FY 2023). Profit margin: 8.7% (up from 6.5% in FY 2023). The increase in margin was driven by higher revenue. Revenue is expected to decline by 30% p.a. on average during the next 2 years, while revenues in the Packaging industry in Malaysia are expected to grow by 11%. Over the last 3 years on average, earnings per share has fallen by 7% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Nov 29
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 06 December 2024. Payment date: 27 December 2024. The company is paying out more than 100% of its profits and is paying out 85% of its cash flow. Trailing yield: 5.4%. Within top quartile of Malaysian dividend payers (4.9%). Higher than average of industry peers (3.6%). Major Estimate Revision • Nov 15
Consensus EPS estimates fall by 10% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM175.7m to RM169.7m. EPS estimate also fell from RM0.055 per share to RM0.049 per share. Net income forecast to grow 56% next year vs 40% growth forecast for Packaging industry in Malaysia. Consensus price target down from RM0.91 to RM0.86. Share price was steady at RM0.90 over the past week. Declared Dividend • Nov 11
Third quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 6th December 2024 Payment date: 27th December 2024 Dividend yield will be 5.3%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (135% earnings payout ratio). However, it is covered by cash flows (85% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 50% to bring the payout ratio under control. EPS is expected to grow by 38% over the next 2 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Reported Earnings • Nov 09
Third quarter 2024 earnings released: EPS: RM0.005 (vs RM0.008 in 3Q 2023) Third quarter 2024 results: EPS: RM0.005 (down from RM0.008 in 3Q 2023). Revenue: RM38.4m (down 7.9% from 3Q 2023). Net income: RM1.55m (down 42% from 3Q 2023). Profit margin: 4.0% (down from 6.4% in 3Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Upcoming Dividend • Sep 04
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 11 September 2024. Payment date: 10 October 2024. The company is paying out more than 100% of its profits and is paying out 92% of its cash flow. Trailing yield: 5.1%. Within top quartile of Malaysian dividend payers (4.7%). Higher than average of industry peers (2.9%). Declared Dividend • Aug 11
Second quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 11th September 2024 Payment date: 10th October 2024 Dividend yield will be 5.3%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (123% earnings payout ratio) nor is it adequately covered by cash flows (92% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 36% to bring the payout ratio under control. EPS is expected to grow by 71% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Aug 10
Second quarter 2024 earnings released: EPS: RM0.01 (vs RM0.011 in 2Q 2023) Second quarter 2024 results: EPS: RM0.01 (down from RM0.011 in 2Q 2023). Revenue: RM41.8m (up 11% from 2Q 2023). Net income: RM3.24m (down 7.2% from 2Q 2023). Profit margin: 7.7% (down from 9.3% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 17% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Jul 29
Now 22% overvalued Over the last 90 days, the stock has fallen 7.8% to RM0.94. The fair value is estimated to be RM0.77, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 68% in the next 2 years. Upcoming Dividend • Jun 03
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 10 June 2024. Payment date: 04 July 2024. The company is paying out more than 100% of its profits and is paying out 93% of its cash flow. Trailing yield: 4.8%. Within top quartile of Malaysian dividend payers (4.4%). Higher than average of industry peers (2.5%). Price Target Changed • May 07
Price target increased by 7.5% to RM0.91 Up from RM0.84, the current price target is an average from 3 analysts. New target price is 13% below last closing price of RM1.04. Stock is up 15% over the past year. The company is forecast to post earnings per share of RM0.057 for next year compared to RM0.033 last year. Declared Dividend • May 06
First quarter dividend of RM0.01 announced Dividend of RM0.01 is the same as last year. Ex-date: 10th June 2024 Payment date: 4th July 2024 Dividend yield will be 4.5%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (120% earnings payout ratio). However, it is covered by cash flows (89% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 34% to bring the payout ratio under control. EPS is expected to grow by 66% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • May 04
First quarter 2024 earnings released: EPS: RM0.016 (vs RM0.01 in 1Q 2023) First quarter 2024 results: EPS: RM0.016 (up from RM0.01 in 1Q 2023). Revenue: RM40.8m (up 1.3% from 1Q 2023). Net income: RM4.94m (up 63% from 1Q 2023). Profit margin: 12% (up from 7.5% in 1Q 2023). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 14% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • May 01
SLP Resources Berhad, Annual General Meeting, Jun 07, 2024 SLP Resources Berhad, Annual General Meeting, Jun 07, 2024, at 11:00 Singapore Standard Time. Agenda: To receive the Audited Financial Statements for the year ended 31 December 2023 and Reports of the Directors and Auditors thereon; to re-elect the following Directors who retire pursuant to Article 88 of the Company's Constitution; to approve the Directors' Fees of up to RM200,000 for the financial year ending 31 December 2024; to approve the payment of benefits payable to the Non-Executive Directors up to an amount of RM25,000, from 08 June 2024 until the next AGM of the Company; to re-appoint Messrs KPMG PLT as Auditors of the Company for the financial year ending 31 December 2024 and to authorize the Board of Directors to determine their remuneration; and to discuss other matters. Buy Or Sell Opportunity • Apr 29
Now 28% overvalued after recent price rise Over the last 90 days, the stock has risen 7.4% to RM1.02. The fair value is estimated to be RM0.80, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 9.8%. For the next 3 years, revenue is forecast to grow by 7.2% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Reported Earnings • Apr 21
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: RM0.033 (down from RM0.065 in FY 2022). Revenue: RM162.3m (down 13% from FY 2022). Net income: RM10.6m (down 49% from FY 2022). Profit margin: 6.5% (down from 11% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has only fallen by 1% per year, which means it has not declined as severely as earnings. Buy Or Sell Opportunity • Mar 19
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 1.6% to RM0.96. The fair value is estimated to be RM0.80, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 3.2% over the last 3 years. Earnings per share has declined by 9.8%. For the next 3 years, revenue is forecast to grow by 7.2% per annum. Earnings are also forecast to grow by 24% per annum over the same time period. Upcoming Dividend • Mar 08
Upcoming dividend of RM0.013 per share Eligible shareholders must have bought the stock before 15 March 2024. Payment date: 05 April 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 5.0%. Within top quartile of Malaysian dividend payers (4.7%). Higher than average of industry peers (2.9%). Declared Dividend • Feb 28
Fourth quarter dividend of RM0.013 announced Shareholders will receive a dividend of RM0.013. Ex-date: 15th March 2024 Payment date: 5th April 2024 Dividend yield will be 5.0%, which is higher than the industry average of 2.8%. Sustainability & Growth Dividend is not covered by earnings (138% earnings payout ratio) nor is it covered by cash flows (116% cash payout ratio). The dividend has increased by an average of 13% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 54% to bring the payout ratio under control. EPS is expected to grow by 62% over the next 2 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Feb 27
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: RM0.034 (down from RM0.065 in FY 2022). Revenue: RM162.3m (down 13% from FY 2022). Net income: RM10.6m (down 49% from FY 2022). Profit margin: 6.5% (down from 11% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 27%. Revenue is forecast to grow 7.9% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has fallen by 10% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings. Upcoming Dividend • Nov 30
Upcoming dividend of RM0.013 per share at 6.4% yield Eligible shareholders must have bought the stock before 07 December 2023. Payment date: 05 January 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.4%. Within top quartile of Malaysian dividend payers (5.1%). Higher than average of industry peers (2.8%). New Risk • Nov 20
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 24% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 138% Cash payout ratio: 102% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (6.9% net profit margin). Market cap is less than US$100m (RM269.4m market cap, or US$57.7m). Reported Earnings • Nov 14
Third quarter 2023 earnings released: EPS: RM0.008 (vs RM0.016 in 3Q 2022) Third quarter 2023 results: EPS: RM0.008 (down from RM0.016 in 3Q 2022). Revenue: RM41.7m (down 12% from 3Q 2022). Net income: RM2.67m (down 46% from 3Q 2022). Profit margin: 6.4% (down from 11% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 2% per year. Upcoming Dividend • Aug 31
Upcoming dividend of RM0.013 per share at 6.6% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 05 October 2023. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 6.6%. Within top quartile of Malaysian dividend payers (5.1%). Higher than average of industry peers (2.9%). Major Estimate Revision • Aug 11
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from RM179.7m to RM168.7m. EPS estimate also fell from RM0.057 per share to RM0.049 per share. Net income forecast to grow 25% next year vs 24% growth forecast for Packaging industry in Malaysia. Consensus price target down from RM0.90 to RM0.81. Share price fell 2.3% to RM0.85 over the past week. New Risk • Aug 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 21% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 121% Cash payout ratio: 103% Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (8.0% net profit margin). Market cap is less than US$100m (RM271.0m market cap, or US$59.4m). New Risk • Aug 06
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 8.0% Last year net profit margin: 12% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 127% Cash payout ratio: 103% Minor Risks Profit margins are more than 30% lower than last year (8.0% net profit margin). Market cap is less than US$100m (RM275.8m market cap, or US$60.5m). Reported Earnings • Aug 05
Second quarter 2023 earnings released: EPS: RM0.011 (vs RM0.028 in 2Q 2022) Second quarter 2023 results: EPS: RM0.011 (down from RM0.028 in 2Q 2022). Revenue: RM37.6m (down 20% from 2Q 2022). Net income: RM3.49m (down 61% from 2Q 2022). Profit margin: 9.3% (down from 19% in 2Q 2022). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 5.2% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Price Target Changed • Jun 12
Price target decreased by 9.2% to RM0.90 Down from RM0.99, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of RM0.89. Stock is down 1.1% over the past year. The company is forecast to post earnings per share of RM0.057 for next year compared to RM0.065 last year. Upcoming Dividend • Jun 06
Upcoming dividend of RM0.01 per share at 6.1% yield Eligible shareholders must have bought the stock before 12 June 2023. Payment date: 06 July 2023. Payout ratio is on the higher end at 91%, and the cash payout ratio is above 100%. Trailing yield: 6.1%. Within top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (3.4%). Announcement • May 06
SLP Resources Berhad Announces First Interim Dividend for the Financial Year Ending 31 December 2023, Payable on 06 July 2023 SLP Resources Berhad announced first interim dividend of 1.0 sen per share for the financial year ending 31 December 2023, payable on 06 July 2023. Entitlement date is 13 June 2023. Ex-Date is 12 June 2023. Reported Earnings • Apr 21
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: RM0.065 (up from RM0.056 in FY 2021). Revenue: RM185.7m (up 9.9% from FY 2021). Net income: RM20.6m (up 16% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 11%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 5.7% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has increased by 3% per year. Upcoming Dividend • Mar 08
Upcoming dividend of RM0.015 per share at 5.8% yield Eligible shareholders must have bought the stock before 15 March 2023. Payment date: 13 April 2023. Payout ratio is on the higher end at 85%, and the cash payout ratio is above 100%. Trailing yield: 5.8%. Within top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (3.1%). Reported Earnings • Feb 25
Full year 2022 earnings released: EPS: RM0.065 (vs RM0.056 in FY 2021) Full year 2022 results: EPS: RM0.065 (up from RM0.056 in FY 2021). Revenue: RM185.7m (up 9.9% from FY 2021). Net income: RM20.6m (up 16% from FY 2021). Profit margin: 11% (in line with FY 2021). Revenue is forecast to grow 4.4% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Packaging industry in Asia. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 2% per year. Board Change • Jan 05
Less than half of directors are independent Following the recent departure of a director, there are only 3 independent directors on the board. The company's board is composed of: 3 independent directors. 4 non-independent directors. Independent and Non Executive Director Kean Lee was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Nov 30
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 07 December 2022. Payment date: 06 January 2023. Payout ratio is on the higher end at 78%, and the cash payout ratio is above 100%. Trailing yield: 5.4%. Within top quartile of Malaysian dividend payers (5.1%). Higher than average of industry peers (3.1%). Price Target Changed • Nov 16
Price target increased to RM0.99 Up from RM0.90, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of RM0.96. Stock is up 2.1% over the past year. The company is forecast to post earnings per share of RM0.058 for next year compared to RM0.056 last year. Price Target Changed • Nov 07
Price target increased to RM0.99 Up from RM0.90, the current price target is an average from 4 analysts. New target price is 7.0% below last closing price of RM1.07. Stock is up 14% over the past year. The company is forecast to post earnings per share of RM0.058 for next year compared to RM0.056 last year. Announcement • Nov 05
SLP Resources Berhad Announces Third Interim Dividend for the Financial Year Ending 31 December 2022, Payable on 06 January 2023 SLP Resources Berhad announced Third Interim Dividend of 1.5 sen per ordinary share in respect of the financial year ending 31 December 2022. Scheduled dates are as follows: Ex-Date 07 December 2022, Entitlement date 08 December 2022 and Payment Date 06 January 2023. Reported Earnings • Nov 05
Third quarter 2022 earnings released: EPS: RM0.016 (vs RM0.01 in 3Q 2021) Third quarter 2022 results: EPS: RM0.016 (up from RM0.01 in 3Q 2021). Revenue: RM47.2m (up 31% from 3Q 2021). Net income: RM4.94m (up 60% from 3Q 2021). Profit margin: 11% (up from 8.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.1% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Packaging industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 4% per year whereas the company’s share price has fallen by 5% per year. Upcoming Dividend • Sep 01
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 08 September 2022. Payment date: 06 October 2022. Payout ratio is on the higher end at 85%, and the cash payout ratio is above 100%. Trailing yield: 6.2%. Within top quartile of Malaysian dividend payers (4.9%). Higher than average of industry peers (2.9%). Announcement • Aug 06
SLP Resources Berhad Announces Second Interim Dividend of the Financial Year Ending 31 December 2022, Payment Date 06 Oct 2022 SLP Resources Berhad announced second Interim Dividend of 1.5 sen per ordinary share in respect of the financial year ending 31 December 2022. Ex-Date 08 Sep 2022, Entitlement date 09 Sep 2022 and Payment Date 06 Oct 2022. Reported Earnings • Aug 06
Second quarter 2022 earnings released: EPS: RM0.028 (vs RM0.015 in 2Q 2021) Second quarter 2022 results: EPS: RM0.028 (up from RM0.015 in 2Q 2021). Revenue: RM47.1m (up 13% from 2Q 2021). Net income: RM8.86m (up 89% from 2Q 2021). Profit margin: 19% (up from 11% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 11%, compared to a 11% growth forecast for the industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 10% per year whereas the company’s share price has fallen by 13% per year. Announcement • Jun 11
SLP Resources Berhad Announces Redesignation of Madam Mary Geraldine Phipps from Independent Director to Non-Independent Director SLP Resources Berhad announced the redesignation of Madam Mary Geraldine Phipps from Independent Director to Non-Independent Director. Date of change is June 10, 2022. In 1982, she was a partner of KPMG, specialising in taxation. In 1990, she was appointed as Managing Partner of KPMG's Penang practice, a position she held until her retirement in December 2004. During this time, she was appointed as a Director of KPMG Tax Services Sdn Bhd. She was also the Tax/Client Partner for multinational clients of KPMG's international offices with manufacturing facilities in Penang. Mary Geraldine studied Accounting & Taxation from Malaysian Institute of Accountants Malaysian Institute of Certified Public Accountants.