New Risk • Jul 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 8.1% a week. This is considered a minor risk. Share price volatility indicates 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. It also 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. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 105% Paying a dividend despite having no free cash flows. Minor Risks Share price has been volatile over the past 3 months (8.1% average weekly change). Large one-off items impacting financial results. Revenue is less than US$5m (RM9.5m revenue, or US$2.3m). Market cap is less than US$100m (RM138.6m market cap, or US$33.9m). Reported Earnings • Apr 28
Full year 2025 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2025 results: EPS: RM0.007 (up from RM0.003 in FY 2024). Revenue: RM8.43m (down 39% from FY 2024). Net income: RM5.05m (up 129% from FY 2024). Profit margin: 60% (up from 16% in FY 2024). Revenue missed analyst estimates by 14%. Earnings per share (EPS) exceeded analyst estimates by 150%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Announcement • Apr 21
Elsoft Research Berhad, Annual General Meeting, May 22, 2026 Elsoft Research Berhad, Annual General Meeting, May 22, 2026, at 10:00 Singapore Standard Time. Location: conference hall of the company, plot 85b, lintang bayan lepas 9, bayan lepas industrial park, phase 4, 11900 pulau pinang, Malaysia Reported Earnings • Mar 02
Full year 2025 earnings released: EPS: RM0.008 (vs RM0.003 in FY 2024) Full year 2025 results: EPS: RM0.008 (up from RM0.003 in FY 2024). Revenue: RM8.43m (down 39% from FY 2024). Net income: RM5.21m (up 136% from FY 2024). Profit margin: 62% (up from 16% in FY 2024). The increase in margin was driven by lower expenses. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. New Risk • Nov 25
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 0% The company is paying a dividend despite having no free cash flows. Dividend yield: 3.6% 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: 0% Paying a dividend despite having no free cash flows. Minor Risks Profit margins are more than 30% lower than last year (11% net profit margin). Revenue is less than US$5m (RM10m revenue, or US$2.5m). Market cap is less than US$100m (RM192.7m market cap, or US$46.6m). Declared Dividend • Nov 24
Dividend of RM0.005 announced Shareholders will receive a dividend of RM0.005. Ex-date: 30th December 2025 Payment date: 16th January 2026 Dividend yield will be 1.8%, which is higher than the industry average of 1.6%. Reported Earnings • Nov 23
Third quarter 2025 earnings released: EPS: RM0.002 (vs RM0 in 3Q 2024) Third quarter 2025 results: EPS: RM0.002 (up from RM0 in 3Q 2024). Revenue: RM3.27m (up 84% from 3Q 2024). Net income: RM1.57m (up RM1.51m from 3Q 2024). Profit margin: 48% (up from 3.7% in 3Q 2024). Revenue is forecast to grow 37% p.a. on average during the next 3 years, compared to a 9.4% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 71 percentage points per year, which is a significant difference in performance. Board Change • Sep 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent & Non Executive Chairman Hean Chuah was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 23
Second quarter 2025 earnings released: EPS: RM0 (vs RM0.002 in 2Q 2024) Second quarter 2025 results: EPS: RM0 (down from RM0.002 in 2Q 2024). Revenue: RM1.60m (down 58% from 2Q 2024). Net income: RM297.0k (down 81% from 2Q 2024). Profit margin: 19% (down from 41% in 2Q 2024). Revenue is forecast to grow 33% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 48 percentage points per year, which is a significant difference in performance. New Risk • Jun 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 8.8% a week. This is considered a minor risk. Share price volatility indicates 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. It also 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. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (8.8% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.8% net profit margin). Revenue is less than US$5m (RM11m revenue, or US$2.6m). Market cap is less than US$100m (RM233.3m market cap, or US$55.0m). Major Estimate Revision • Jun 05
Consensus revenue estimates fall by 23% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM23.0m to RM17.6m. EPS estimate fell from RM0.015 to RM0.011 per share. Net income forecast to grow 889% next year vs 41% growth forecast for Semiconductor industry in Malaysia. Consensus price target down from RM0.52 to RM0.41. Share price fell 8.6% to RM0.32 over the past week. Reported Earnings • May 30
First quarter 2025 earnings released: EPS: RM0 (vs RM0.002 in 1Q 2024) First quarter 2025 results: EPS: RM0 (down from RM0.002 in 1Q 2024). Revenue: RM1.80m (down 61% from 1Q 2024). Net income: RM68.0k (down 95% from 1Q 2024). Profit margin: 3.8% (down from 31% in 1Q 2024). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 52% per year but the company’s share price has only fallen by 22% per year, which means it has not declined as severely as earnings. New Risk • May 07
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 38% 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: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (16% net profit margin). Revenue is less than US$5m (RM14m revenue, or US$3.3m). Market cap is less than US$100m (RM209.6m market cap, or US$49.5m). Announcement • Apr 28
Elsoft Research Berhad, Annual General Meeting, May 29, 2025 Elsoft Research Berhad, Annual General Meeting, May 29, 2025, at 14:30 Singapore Standard Time. Location: conference hall of the company, plot 85b, lintang bayan lepas 9, bayan lepas industrial park, phase 4, 11900 pulau pinang, Malaysia Price Target Changed • Mar 12
Price target decreased by 10% to RM0.52 Down from RM0.58, the current price target is provided by 1 analyst. New target price is 73% above last closing price of RM0.30. Stock is down 42% over the past year. The company is forecast to post earnings per share of RM0.015 for next year compared to RM0.0031 last year. Reported Earnings • Feb 23
Full year 2024 earnings released: EPS: RM0.003 (vs RM0.01 in FY 2023) Full year 2024 results: EPS: RM0.003 (down from RM0.01 in FY 2023). Revenue: RM13.9m (down 14% from FY 2023). Net income: RM2.16m (down 69% from FY 2023). Profit margin: 16% (down from 44% in FY 2023). The decrease in margin was primarily driven by higher expenses. Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 13% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 31% per year whereas the company’s share price has fallen by 26% per year. Upcoming Dividend • Dec 12
Upcoming dividend of RM0.02 per share Eligible shareholders must have bought the stock before 19 December 2024. Payment date: 31 December 2024. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.6%. Lower than top quartile of Malaysian dividend payers (4.9%). Higher than average of industry peers (1.8%). Announcement • Dec 11
Ang Aik Beng and Tan Hui Ien @ Tan Kui Yen entered into a share sale agreement to acquire Xyrius Solutions Sdn Bhd from Elsoft Research Berhad (KLSE:ELSOFT) for MYR 7.3 million. Ang Aik Beng and Tan Hui Ien @ Tan Kui Yen entered into a share sale agreement to acquire Xyrius Solutions Sdn Bhd from Elsoft Research Berhad (KLSE:ELSOFT) for MYR 7.3 million on December 10, 2024.
Ang Aik Beng and Tan Hui Ien @ Tan Kui Yen will acquire 50% stake in Xyrius Solutions Sdn Bhd each.
As of December 31, 2023, Xyrius Solutions Sdn Bhd reported total common equity of MYR 2.05 million.
The transaction is expected to be completed by the first quarter of 2025. Major Estimate Revision • Nov 29
Consensus revenue estimates fall by 27% The consensus outlook for revenues in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM18.0m to RM13.2m. EPS estimate fell from RM0.011 to RM0.007 per share. Net income forecast to grow 267% next year vs 37% growth forecast for Semiconductor industry in Malaysia. Consensus price target down from RM0.58 to RM0.50. Share price fell 8.9% to RM0.41 over the past week. New Risk • Nov 28
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 29% 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: 457% Paying a dividend despite having no free cash flows. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (24% net profit margin). Revenue is less than US$5m (RM12m revenue, or US$2.8m). Market cap is less than US$100m (RM294.3m market cap, or US$66.2m). Price Target Changed • Nov 25
Price target decreased by 9.1% to RM0.50 Down from RM0.55, the current price target is provided by 1 analyst. New target price is 18% above last closing price of RM0.42. Stock is down 21% over the past year. The company is forecast to post earnings per share of RM0.007 for next year compared to RM0.01 last year. Reported Earnings • Nov 23
Third quarter 2024 earnings released: EPS: RM0 (vs RM0.002 in 3Q 2023) Third quarter 2024 results: EPS: RM0 (down from RM0.002 in 3Q 2023). Revenue: RM1.78m (down 44% from 3Q 2023). Net income: RM66.0k (down 96% from 3Q 2023). Profit margin: 3.7% (down from 48% in 3Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue is forecast to grow 42% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Reported Earnings • Aug 17
Second quarter 2024 earnings released: EPS: RM0.002 (vs RM0.004 in 2Q 2023) Second quarter 2024 results: EPS: RM0.002 (down from RM0.004 in 2Q 2023). Revenue: RM3.83m (down 38% from 2Q 2023). Net income: RM1.56m (down 49% from 2Q 2023). Profit margin: 41% (down from 50% in 2Q 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 37% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 19% per year but the company’s share price has fallen by 15% per year, which means it is significantly lagging earnings. Announcement • Jun 08
Elsoft Research Berhad Announces Retirement of Madam Tan Ai Jiew as Non Independent and Non Executive Director, Effective June 7, 2024 Elsoft Research Berhad announced the retirement of Madam Tan Ai Jiew as Non Independent and Non Executive Director, effective June 7, 2024. Madam Tan Ai Jiew, Tan Cheik Eaik and Tan Ah Lek who are the major shareholders and Directors of the Elsoft Research Berhad ("Elsoft") and Tan Cheik Kooi who is the major shareholder of Elsoft are siblings. Major Estimate Revision • May 10
Consensus revenue estimates decrease by 28% The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from RM28.8m to RM20.7m. EPS estimate unchanged from RM0.014 per share at last update. Semiconductor industry in Malaysia expected to see average net income growth of 56% next year. Consensus price target of RM0.57 unchanged from last update. Share price rose 4.7% to RM0.56 over the past week. Reported Earnings • May 04
First quarter 2024 earnings released: EPS: RM0.002 (vs RM0.004 in 1Q 2023) First quarter 2024 results: EPS: RM0.002 (down from RM0.004 in 1Q 2023). Revenue: RM4.58m (flat on 1Q 2023). Net income: RM1.41m (down 43% from 1Q 2023). Profit margin: 31% (down from 54% in 1Q 2023). Revenue is forecast to grow 27% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Announcement • May 01
Elsoft Research Berhad, Annual General Meeting, Jun 07, 2024 Elsoft Research Berhad, Annual General Meeting, Jun 07, 2024, at 10:00 China Standard Time. Location: Conference Hall of the Company, Plot 85B, Lintang Bayan Lepas 9 Bayan Lepas Industrial Park, Phase 4 Pulau Pinang Malaysia Agenda: To receive the Audited Financial Statements for the financial year ended 31 December 2023 together with the Reports of the Directors and Auditors thereon; to approve the payment of Directors' fees of not exceeding MYR 350,000.00 to the Non-Executive Directors for the financial year ending 31 December 2024; to approve reelection of Directors; to re-appoint Messrs. BDO PLT as Auditors of the Company and fix their remuneration; to approve authority under sections 75 and 76 of the Companies Act, 2016 for the directors to issue shares; to approve proposed renewal of share buy-back authority; and to transact any other matters. Upcoming Dividend • Mar 20
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 08 April 2024. The company is paying out more than 100% of its earnings and cash flow. Trailing yield: 3.7%. Lower than top quartile of Malaysian dividend payers (4.7%). Higher than average of industry peers (1.7%). Price Target Changed • Feb 27
Price target increased by 7.3% to RM0.59 Up from RM0.55, the current price target is provided by 1 analyst. New target price is 12% above last closing price of RM0.53. Stock is down 9.5% over the past year. The company is forecast to post earnings per share of RM0.02 for next year compared to RM0.011 last year. Declared Dividend • Feb 25
Final dividend of RM0.01 announced Shareholders will receive a dividend of RM0.01. Ex-date: 27th March 2024 Payment date: 8th April 2024 Dividend yield will be 3.7%, which is higher than the industry average of 1.6%. Sustainability & Growth Dividend is covered by earnings (36% earnings payout ratio) but not covered by cash flows (207% cash payout ratio). The dividend has increased by an average of 14% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 87% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 24
Full year 2023 earnings released: EPS: RM0.011 (vs RM0.063 in FY 2022) Full year 2023 results: EPS: RM0.011 (down from RM0.063 in FY 2022). Revenue: RM16.1m (down 43% from FY 2022). Net income: RM7.60m (down 82% from FY 2022). Profit margin: 47% (down from 153% in FY 2022). Revenue is forecast to grow 36% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Major Estimate Revision • Nov 24
Consensus revenue estimates fall by 15% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from RM22.3m to RM19.0m. EPS estimate fell from RM0.015 to RM0.013 per share. Net income forecast to shrink 62% next year vs 33% growth forecast for Semiconductor industry in Malaysia . Consensus price target of RM0.58 unchanged from last update. Share price fell 2.8% to RM0.53 over the past week. Reported Earnings • Nov 18
Third quarter 2023 earnings released: EPS: RM0.002 (vs RM0.005 in 3Q 2022) Third quarter 2023 results: EPS: RM0.002 (down from RM0.005 in 3Q 2022). Net income: RM1.50m (down 58% from 3Q 2022). Revenue is forecast to grow 30% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 86% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Sep 07
Upcoming dividend of RM0.01 per share at 3.8% yield Eligible shareholders must have bought the stock before 14 September 2023. Payment date: 06 October 2023. Payout ratio is a comfortable 34% but the company is paying out more than the cash it is generating. Trailing yield: 3.8%. Lower than top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (1.6%). New Risk • Aug 20
New minor risk - Revenue size The company makes less than US$5m in revenue. Total revenue: RM23m (US$4.9m) This is considered a minor risk. Companies with a small amount of revenue are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risks Earnings are forecast to decline by an average of 29% per year for the foreseeable future. High level of non-cash earnings (81% accrual ratio). Minor Risks Dividend is not well covered by cash flows (248% cash payout ratio). Shareholders have been diluted in the past year (2.4% increase in shares outstanding). Revenue is less than US$5m (RM23m revenue, or US$4.9m). Market cap is less than US$100m (RM377.4m market cap, or US$81.2m). Reported Earnings • Aug 19
Second quarter 2023 earnings released: EPS: RM0.005 (vs RM0.008 in 2Q 2022) Second quarter 2023 results: EPS: RM0.005 (down from RM0.008 in 2Q 2022). Net income: RM3.07m (down 40% from 2Q 2022). Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 89% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Announcement • Aug 19
Elsoft Research Berhad Declares Single Tier First Interim Dividend for the Financial Year Ending 31 December, 2023, Payable on October 06, 2023 Elsoft Research Berhad declared Single Tier first interim dividend of RMB 0.01 per ordinary share financial year ending 31 December, 2023. Ex-Date is 14 September 2023. Payment Date is 06 October 2023. Entitlement date is 15 September 2023. Reported Earnings • May 25
First quarter 2023 earnings released: EPS: RM0.004 (vs RM0.004 in 1Q 2022) First quarter 2023 results: EPS: RM0.004 (in line with 1Q 2022). Net income: RM2.46m (down 16% from 1Q 2022). Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 78% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 23
Upcoming dividend of RM0.02 per share at 3.4% yield Eligible shareholders must have bought the stock before 30 March 2023. Payment date: 14 April 2023. Payout ratio is a comfortable 32% but the company is not cash flow positive. Trailing yield: 3.4%. Lower than top quartile of Malaysian dividend payers (5.2%). Higher than average of industry peers (1.9%). Reported Earnings • Feb 18
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: RM0.064 (up from RM0.016 in FY 2021). Net income: RM43.0m (up 293% from FY 2021). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) exceeded analyst estimates. Over the last 3 years on average, earnings per share has increased by 49% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 22
Third quarter 2022 earnings released: EPS: RM0.005 (vs RM0.004 in 3Q 2021) Third quarter 2022 results: EPS: RM0.005 (up from RM0.004 in 3Q 2021). Revenue: RM7.21m (up 4.1% from 3Q 2021). Net income: RM3.61m (up 21% from 3Q 2021). Profit margin: 50% (up from 43% in 3Q 2021). The increase in margin was primarily driven by lower expenses. Revenue is forecast to grow 9.4% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 12% per year, which means it is performing significantly worse than earnings. Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 6 highly experienced directors. Independent & Non Executive Director Soo Lee was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Nov 03
Elsoft Research Berhad Announces Appointment of Ng Tzeh Chyuan as Chief Financial Officer Elsoft Research Berhad announced appointment of MR NG TZEH CHYUAN as Chief Financial Officer. Date of change 02 November 2022, Age 34. Working experience: Mr. Ng Tzeh Chuan began his career as an auditor with BDO Malaysia (presently known as BDO PLT) in year 2011. He was later promoted to Senior Audit Associate in 2012. During his tenure with BDO Malaysia, he was involved in auditing of both listed companies and private companies covering a wide range of industries including trading, manufacturing, gaming, property development, and construction. In 2014, he left BDO Malaysia to join Elsoft Research Berhad as Accountant and was thereafter promoted to Chief Financial Officer. Qualifications: Professional Qualification Association of Chartered Certified Accountants, Others Advance Diploma in Commerce (Financial Accounting) and Diploma Business Studies (Accounting). Price Target Changed • Oct 08
Price target decreased to RM0.58 Down from RM0.73, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of RM0.60. Stock is down 30% over the past year. The company is forecast to post earnings per share of RM0.017 for next year compared to RM0.016 last year. Upcoming Dividend • Sep 07
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 14 September 2022. Payment date: 07 October 2022. Payout ratio and cash payout ratio are on the higher end at 82% and 86% respectively. Trailing yield: 3.0%. Lower than top quartile of Malaysian dividend payers (5.0%). Higher than average of industry peers (2.0%). Major Estimate Revision • Aug 26
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast fell from RM38.3m to RM27.2m. EPS estimate unchanged from RM0.017 per share at last update. Semiconductor industry in Malaysia expected to see average net income growth of 16% next year. Consensus price target of RM0.70 unchanged from last update. Share price fell 2.0% to RM0.73 over the past week. Reported Earnings • Aug 20
Second quarter 2022 earnings released: EPS: RM0.008 (vs RM0.003 in 2Q 2021) Second quarter 2022 results: EPS: RM0.008 (up from RM0.003 in 2Q 2021). Revenue: RM9.07m (up 69% from 2Q 2021). Net income: RM5.10m (up 163% from 2Q 2021). Profit margin: 56% (up from 36% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 20%, compared to a 19% growth forecast for the Semiconductor industry in Malaysia. Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Jul 19
Elsoft Research Berhad Announces Resignation of Datuk Tan Leh Kiah as Joint Secretary Elsoft Research Berhad announced resignation of Datuk Tan Leh Kiah as Joint Secretary. Date of change is 18 July 2022. Announcement • May 14
Elsoft Research Berhad, Annual General Meeting, Jun 10, 2022 Elsoft Research Berhad, Annual General Meeting, Jun 10, 2022, at 10:00 China Standard Time. Agenda: To consider proposed disposal by siangtronics technology sdn bhd a wholly- owned subsidiary of elsoft, of a piece of leasehold land together with a 2- storey factory-cum-office building with ancillary buildings erected thereon for a total cash consideration of rm38,000,000. Price Target Changed • May 05
Price target decreased to RM0.73 Down from RM1.25, the current price target is provided by 1 analyst. New target price is 12% below last closing price of RM0.83. Stock is up 18% over the past year. The company is forecast to post earnings per share of RM0.024 for next year compared to RM0.016 last year. Reported Earnings • Apr 28
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: RM0.016 (up from RM0.001 in FY 2020). Revenue: RM29.2m (up 61% from FY 2020). Net income: RM11.0m (up RM10.3m from FY 2020). Profit margin: 38% (up from 3.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 21%. Earnings per share (EPS) also surpassed analyst estimates by 8.7%. Over the next year, revenue is forecast to grow 63%, compared to a 24% growth forecast for the industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 82 percentage points per year, which is a significant difference in performance. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 6 highly experienced directors. Non-Executive Independent Director Agatha Foo was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Mar 23
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 30 March 2022. Payment date: 15 April 2022. Payout ratio and cash payout ratio are on the higher end at 92% and 77% respectively. Trailing yield: 1.6%. Lower than top quartile of Malaysian dividend payers (4.7%). Higher than average of industry peers (1.0%). Reported Earnings • Feb 20
Full year 2021 earnings: EPS and revenues miss analyst expectations Full year 2021 results: EPS: RM0.016 (up from RM0.001 in FY 2020). Revenue: RM29.2m (up 61% from FY 2020). Net income: RM11.0m (up RM10.4m from FY 2020). Profit margin: 38% (up from 3.6% in FY 2020). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 100%. Earnings per share (EPS) also missed analyst estimates by 100%. Over the next year, revenue is forecast to grow 63%, compared to a 28% growth forecast for the industry in Malaysia. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 78 percentage points per year, which is a significant difference in performance. Announcement • Feb 19
Elsoft Research Berhad Announces Second Interim Dividend for the Financial Year Ended December 31, 2021, Payable 15 April 2022 Elsoft Research Berhad announced Single Tier Second Interim Dividend of MYR 0.01 per ordinary share for the financial year ended December 31, 2021. Payment Date is 15 April 2022, Entitlement date is 31 March 2022 and Ex-Date is 31 March 2022. Reported Earnings • Nov 21
Third quarter 2021 earnings released: EPS RM0.004 (vs RM0.004 in 3Q 2020) The company reported a solid third quarter result with improved earnings and revenues, although profit margins were weaker. Third quarter 2021 results: Revenue: RM6.93m (up 47% from 3Q 2020). Net income: RM2.98m (up 8.1% from 3Q 2020). Profit margin: 43% (down from 58% in 3Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 81 percentage points per year, which is a significant difference in performance. Reported Earnings • Aug 22
Second quarter 2021 earnings released: EPS RM0.003 (vs RM0.002 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: RM5.36m (up 28% from 2Q 2020). Net income: RM1.94m (up 69% from 2Q 2020). Profit margin: 36% (up from 27% in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 66 percentage points per year, which is a significant difference in performance. Price Target Changed • Aug 11
Price target increased to RM1.25 Up from RM0.67, the current price target is provided by 1 analyst. New target price is 37% above last closing price of RM0.92. Stock is up 33% over the past year. Major Estimate Revision • Aug 11
Consensus forecasts updated The consensus outlook for 2021 has been updated. 2021 revenue forecast increased from RM19.6m to RM24.2m. EPS estimate unchanged from RM0.015 at last update. Semiconductor industry in Malaysia expected to see average net income growth of 59% next year. Consensus price target up from RM0.67 to RM1.25. Share price rose 5.8% to RM0.92 over the past week. Reported Earnings • Feb 26
Full year 2020 earnings released: EPS RM0.001 (vs RM0.025 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM18.1m (down 46% from FY 2019). Net income: RM694.0k (down 96% from FY 2019). Profit margin: 3.8% (down from 51% in FY 2019). The decrease in margin was primarily driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 51% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Feb 26
Revenue and earnings miss expectations Revenue missed analyst estimates by 8.0%. Earnings per share (EPS) also missed analyst estimates by 91%. Over the next year, revenue is forecast to grow 59%, compared to a 36% growth forecast for the Semiconductor industry in Malaysia. Is New 90 Day High Low • Jan 13
New 90-day high: RM0.94 The company is up 56% from its price of RM0.60 on 15 October 2020. The Malaysian market is up 5.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Semiconductor industry, which is up 30% over the same period. Is New 90 Day High Low • Dec 28
New 90-day high: RM0.70 The company is up 17% from its price of RM0.60 on 29 September 2020. The Malaysian market is up 9.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Semiconductor industry, which is up 29% over the same period. Reported Earnings • Nov 21
Third quarter 2020 earnings released: EPS RM0.004 The company reported a mediocre third quarter result with weaker revenues, although earnings were flat and profit margins were improved. Third quarter 2020 results: Revenue: RM4.73m (down 2.5% from 3Q 2019). Net income: RM2.76m (flat on 3Q 2019). Profit margin: 58% (up from 57% in 3Q 2019). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 35% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Sep 28
New 90-day low: RM0.60 The company is down 2.0% from its price of RM0.61 on 30 June 2020. The Malaysian market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Semiconductor industry, which is up 49% over the same period.