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KESM

KESM Industries BerhadKLSE:KESM Stock Report

Market Cap

RM540.3m

7D

1.3%

1Y

56.4%

Updated

23 Sep, 2021

Data

Company Financials +
KESM fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance4/6
Financial Health6/6
Dividends0/6

KESM Overview

KESM Industries Berhad, an investment holding company, provides burn-in and test services to semiconductor manufacturers in Malaysia, China, and internationally.

Rewards

Earnings are forecast to grow 23.36% per year

Earnings grew by 7540.6% over the past year

Risk Analysis

No risks detected for KESM from our risk checks.

Price History & Performance

Summary of all time highs, changes and price drops for KESM Industries Berhad
Historical stock prices
Current Share PriceRM12.56
52 Week HighRM8.01
52 Week LowRM17.62
Beta1.21
1 Month Change-6.69%
3 Month Change16.30%
1 Year Change56.41%
3 Year Change-26.12%
5 Year Change57.59%
Change since IPO358.39%

Recent News & Updates

Shareholder Returns

KESMMY SemiconductorMY Market
7D1.3%3.7%-0.7%
1Y56.4%112.0%6.2%

Return vs Industry: KESM underperformed the MY Semiconductor industry which returned 110% over the past year.

Return vs Market: KESM exceeded the MY Market which returned 6.1% over the past year.

Price Volatility

Is KESM's price volatile compared to industry and market?
KESM volatility
KESM Beta1.21
Industry Beta1.13
Market Beta1

Stable Share Price: KESM is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KESM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1978842Samuel Limhttps://www.kesmi.com

KESM Industries Berhad, an investment holding company, provides burn-in and test services to semiconductor manufacturers in Malaysia, China, and internationally. The company also offers electrical testing of semiconductor IC, as well as tape and reel assembly services; and electronic manufacturing services primarily to original equipment manufacturers and original design manufacturers in the computing, industrial, communications, and consumer markets. KESM Industries Berhad was founded in 1978 and is based in Petaling Jaya, Malaysia.

KESM Industries Berhad Fundamentals Summary

How do KESM Industries Berhad's earnings and revenue compare to its market cap?
KESM fundamental statistics
Market CapRM540.26m
Earnings (TTM)RM7.34m
Revenue (TTM)RM265.66m

73.7x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KESM income statement (TTM)
RevenueRM265.66m
Cost of RevenueRM37.12m
Gross ProfitRM228.54m
ExpensesRM221.20m
EarningsRM7.34m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.17
Gross Margin86.02%
Net Profit Margin2.76%
Debt/Equity Ratio3.8%

How did KESM perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

53%

Payout Ratio

Valuation

Is KESM Industries Berhad undervalued compared to its fair value and its price relative to the market?

73.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KESM (MYR12.56) is trading above our estimate of fair value (MYR8.57)

Significantly Below Fair Value: KESM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KESM is poor value based on its PE Ratio (73.7x) compared to the MY Semiconductor industry average (65.7x).

PE vs Market: KESM is poor value based on its PE Ratio (73.7x) compared to the MY market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: KESM is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: KESM is good value based on its PB Ratio (1.5x) compared to the MY Semiconductor industry average (5x).


Future Growth

How is KESM Industries Berhad forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

23.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KESM's forecast earnings growth (23.4% per year) is above the savings rate (3.6%).

Earnings vs Market: KESM's earnings (23.4% per year) are forecast to grow faster than the MY market (10.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KESM's revenue (3.6% per year) is forecast to grow slower than the MY market (6.5% per year).

High Growth Revenue: KESM's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KESM's Return on Equity is forecast to be low in 3 years time (3.4%).


Past Performance

How has KESM Industries Berhad performed over the past 5 years?

-43.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KESM has high quality earnings.

Growing Profit Margin: KESM's current net profit margins (2.8%) are higher than last year (0.04%).


Past Earnings Growth Analysis

Earnings Trend: KESM's earnings have declined by 43.3% per year over the past 5 years.

Accelerating Growth: KESM's earnings growth over the past year (7540.6%) exceeds its 5-year average (-43.3% per year).

Earnings vs Industry: KESM earnings growth over the past year (7540.6%) exceeded the Semiconductor industry 83.3%.


Return on Equity

High ROE: KESM's Return on Equity (2%) is considered low.


Financial Health

How is KESM Industries Berhad's financial position?


Financial Position Analysis

Short Term Liabilities: KESM's short term assets (MYR289.5M) exceed its short term liabilities (MYR39.3M).

Long Term Liabilities: KESM's short term assets (MYR289.5M) exceed its long term liabilities (MYR13.3M).


Debt to Equity History and Analysis

Debt Level: KESM's debt to equity ratio (3.8%) is considered satisfactory.

Reducing Debt: KESM's debt to equity ratio has reduced from 12.8% to 3.8% over the past 5 years.

Debt Coverage: KESM's debt is well covered by operating cash flow (268.9%).

Interest Coverage: KESM's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet


Dividend

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

0.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KESM's dividend (0.72%) isn’t notable compared to the bottom 25% of dividend payers in the MY market (1.55%).

High Dividend: KESM's dividend (0.72%) is low compared to the top 25% of dividend payers in the MY market (4.23%).


Stability and Growth of Payments

Stable Dividend: KESM is not paying a notable dividend for the MY market, therefore no need to check if payments are stable.

Growing Dividend: KESM is not paying a notable dividend for the MY market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KESM is not paying a notable dividend for the MY market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KESM's dividend in 3 years as they are not forecast to pay a notable one for the MY market.


Next Steps

Management

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

24.7yrs

Average board tenure


CEO

Samuel Lim (67 yo)

no data

Tenure

RM747,000

Compensation

Mr. Syn Soo Lim, also known as Samuel has been Executive Chairman and Chief Executive Officer of Sunright Limited since March 9, 1978. Mr. Lim serves as the Chief Executive Officer of KESM Industries Bhd....


CEO Compensation Analysis

Compensation vs Market: Samuel's total compensation ($USD178.22K) is above average for companies of similar size in the MY market ($USD124.87K).

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


Board Members

Experienced Board: KESM's board of directors are seasoned and experienced ( 24.7 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

KESM Industries Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: KESM Industries Berhad
  • Ticker: KESM
  • Exchange: KLSE
  • Founded: 1978
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: RM540.262m
  • Shares outstanding: 43.01m
  • Website: https://www.kesmi.com

Number of Employees


Location

  • KESM Industries Berhad
  • Sungei Way Free Trade Industrial Zone
  • Lot 4
  • Petaling Jaya
  • Selangor
  • 47300
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 15:54
End of Day Share Price2021/09/23 00:00
Earnings2021/07/31
Annual Earnings2021/07/31


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.