| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 3/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
KESM Overview
KESM Industries Berhad, an investment holding company, provides burn-in and test services to semiconductor manufacturers in Malaysia, China, and internationally.
Rewards
Risk Analysis
No risks detected for KESM from our risk checks.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | RM12.56 |
| 52 Week High | RM8.01 |
| 52 Week Low | RM17.62 |
| Beta | 1.21 |
| 1 Month Change | -6.69% |
| 3 Month Change | 16.30% |
| 1 Year Change | 56.41% |
| 3 Year Change | -26.12% |
| 5 Year Change | 57.59% |
| Change since IPO | 358.39% |
Recent News & Updates
Shareholder Returns
| KESM | MY Semiconductor | MY Market | |
|---|---|---|---|
| 7D | 1.3% | 3.7% | -0.7% |
| 1Y | 56.4% | 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
| KESM volatility | |
|---|---|
| KESM Beta | 1.21 |
| Industry Beta | 1.13 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1978 | 842 | Samuel Lim | https://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
| KESM fundamental statistics | |
|---|---|
| Market Cap | RM540.26m |
| Earnings (TTM) | RM7.34m |
| Revenue (TTM) | RM265.66m |
73.7x
P/E Ratio2.0x
P/S RatioIs KESM overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| KESM income statement (TTM) | |
|---|---|
| Revenue | RM265.66m |
| Cost of Revenue | RM37.12m |
| Gross Profit | RM228.54m |
| Expenses | RM221.20m |
| Earnings | RM7.34m |
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.17 |
| Gross Margin | 86.02% |
| Net Profit Margin | 2.76% |
| Debt/Equity Ratio | 3.8% |
How did KESM perform over the long term?
See historical performance and comparisonDividends
0.7%
Current Dividend Yield53%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 15:54 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/07/31 |
| Annual Earnings | 2021/07/31 |
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.