Menang Corporation (M) Berhad (KLSE:MENANG) - Share price, News & Analysis

MENANG fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	4/6
Financial Health	2/6
Dividends	0/6

MENANG Stock Overview

Menang Corporation (M) Berhad, an investment holding company, engages in the property development, construction, and government development projects activities in Malaysia.

Rewards

Trading at 81.4% below our estimate of its fair value

Earnings grew by 125.9% over the past year

Risk Analysis

Earnings have declined by 10.5% per year over past 5 years

Interest payments are not well covered by earnings

Highly volatile share price over the past 3 months

Shareholders have been diluted in the past year

+ 1 more risk

Menang Corporation (M) Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Menang Corporation (M) Berhad
Historical stock prices
Current Share Price	RM0.55
52 Week High	RM0.68
52 Week Low	RM0.38
Beta	0.44
1 Month Change	1.87%
3 Month Change	-13.49%
1 Year Change	25.29%
3 Year Change	65.15%
5 Year Change	5.48%
Change since IPO	8.40%

Recent News & Updates

Jun 15

These 4 Measures Indicate That Menang Corporation (M) Berhad (KLSE:MENANG) Is Using Debt Extensively

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Apr 18

Here's Why We Think Menang Corporation (M) Berhad (KLSE:MENANG) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Feb 11

Menang Corporation (M) Berhad's (KLSE:MENANG) Price Is Out Of Tune With Earnings

Menang Corporation (M) Berhad's ( KLSE:MENANG ) price-to-earnings (or "P/E") ratio of 28.5x might make it look like a...

Shareholder Returns

	MENANG	MY Real Estate	MY Market
7D	1.9%	-0.6%	-1.2%
1Y	25.3%	-12.7%	-8.7%

Return vs Industry: MENANG exceeded the MY Real Estate industry which returned -12.7% over the past year.

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

Price Volatility

Is MENANG's price volatile compared to industry and market?
MENANG volatility
MENANG Average Weekly Movement	13.1%
Real Estate Industry Average Movement	5.1%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.4%
10% least volatile stocks in MY Market	2.9%

Stable Share Price: MENANG is more volatile than 90% of MY stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: MENANG's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of MY stocks.

About the Company

Founded	Employees	CEO	Website
1964	n/a	May Toh	https://www.menangcorporation.com

Menang Corporation (M) Berhad, an investment holding company, engages in the property development, construction, and government development projects activities in Malaysia. The company operates through Property Development, Investment Holding, and Concession Arrangements segments. It develops residential and commercial properties.

Menang Corporation (M) Berhad Fundamentals Summary

How do Menang Corporation (M) Berhad's earnings and revenue compare to its market cap?
MENANG fundamental statistics
Market Cap	RM275.91m
Earnings (TTM)	RM12.27m
Revenue (TTM)	RM87.11m

22.5x

P/E Ratio

3.2x

P/S Ratio

Is MENANG overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MENANG income statement (TTM)
Revenue	RM87.11m
Cost of Revenue	RM16.36m
Gross Profit	RM70.75m
Other Expenses	RM58.48m
Earnings	RM12.27m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.024
Gross Margin	81.22%
Net Profit Margin	14.08%
Debt/Equity Ratio	100.5%

How did MENANG perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MENANG 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
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MENANG?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MENANG. This is calculated by dividing MENANG's market cap by their current preferred multiple.
What is MENANG's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM275.91m

MENANG 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	8.9x
Enterprise Value/EBITDA	12.7x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

MENANG PE Ratio vs Peers

The above table shows the PE ratio for MENANG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	9x

Forward PE

Price-To-Earnings vs Peers: MENANG is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the peer average (9x).

Price to Earnings Ratio vs Industry

How does MENANG's PE Ratio compare vs other companies in the Malaysian Real Estate Industry?

Price-To-Earnings vs Industry: MENANG is expensive based on its Price-To-Earnings Ratio (22.5x) compared to the MY Real Estate industry average (13.2x)

Price to Earnings Ratio vs Fair Ratio

What is MENANG'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.

MENANG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.5x
Fair PE Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: MENANG (MYR0.55) is trading below our estimate of fair value (MYR2.93)

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

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Menang Corporation (M) 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

11.9%

Forecasted Real Estate 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 Menang Corporation (M) 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

Check out Menang Corporation (M) Berhad's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Menang Corporation (M) 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

-10.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MENANG has high quality earnings.

Growing Profit Margin: MENANG's current net profit margins (14.1%) are higher than last year (6.1%).

Past Earnings Growth Analysis

Earnings Trend: MENANG's earnings have declined by 10.5% per year over the past 5 years.

Accelerating Growth: MENANG's earnings growth over the past year (125.9%) exceeds its 5-year average (-10.5% per year).

Earnings vs Industry: MENANG earnings growth over the past year (125.9%) exceeded the Real Estate industry -0.5%.

Return on Equity

High ROE: MENANG's Return on Equity (5%) is considered low.

Discover strong past performing companies

Financial Health

How is Menang Corporation (M) Berhad's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MENANG's short term assets (MYR142.5M) do not cover its short term liabilities (MYR156.6M).

Long Term Liabilities: MENANG's short term assets (MYR142.5M) do not cover its long term liabilities (MYR435.4M).

Debt to Equity History and Analysis

Debt Level: MENANG's net debt to equity ratio (91.4%) is considered high.

Reducing Debt: MENANG's debt to equity ratio has reduced from 182.7% to 100.5% over the past 5 years.

Debt Coverage: MENANG's debt is well covered by operating cash flow (24.7%).

Interest Coverage: MENANG's interest payments on its debt are not well covered by EBIT (2.2x coverage).

Balance Sheet

Discover healthy companies

Dividend

What is Menang Corporation (M) Berhad current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MENANG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MENANG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MENANG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MENANG's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MENANG has not reported any payouts.

Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure

CEO

May Toh (63 yo)

1.33yrs

Tenure

RM16,491

Compensation

Mr. May Fook Toh serves as Group Managing Director at Menang Corporation (M) Berhad since February 1, 2021 and serves as its Director. He served as Non-Independent Non-Executive Director from January 29, 2...

Leadership Team

Experienced Management: MENANG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: MENANG's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.

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 been diluted in the past year, with total shares outstanding growing by 5.3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30