company background image
MICR

Microlink Solutions Berhad KLSE:MICROLN Stock Report

Last Price

RM0.61

Market Cap

RM641.3m

7D

5.2%

1Y

-5.8%

Updated

15 Aug, 2022

Data

Company Financials
MICROLN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance1/6
Financial Health6/6
Dividends0/6

MICROLN Stock Overview

Microlink Solutions Berhad, an investment holding company, researches and develops information technology solutions in Malaysia and internationally.

Microlink Solutions Berhad Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Microlink Solutions Berhad
Historical stock prices
Current Share PriceRM0.61
52 Week HighRM0.67
52 Week LowRM0.52
Beta1.5
1 Month Change7.02%
3 Month Change1.67%
1 Year Change-5.79%
3 Year Change339.64%
5 Year Change165.22%
Change since IPO383.17%

Recent News & Updates

Shareholder Returns

MICROLNMY SoftwareMY Market
7D5.2%1.2%0.2%
1Y-5.8%-36.0%-3.5%

Return vs Industry: MICROLN exceeded the MY Software industry which returned -36% over the past year.

Return vs Market: MICROLN underperformed the MY Market which returned -3.5% over the past year.

Price Volatility

Is MICROLN's price volatile compared to industry and market?
MICROLN volatility
MICROLN Average Weekly Movement2.0%
Software Industry Average Movement7.1%
Market Average Movement5.5%
10% most volatile stocks in MY Market11.7%
10% least volatile stocks in MY Market2.7%

Stable Share Price: MICROLN is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MICROLN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1994246Yong Chiahttps://www.microlink.com.my

Microlink Solutions Berhad, an investment holding company, researches and develops information technology solutions in Malaysia and internationally. The company operates in four segments: Financial Services, Enterprise Solutions, Trading Services, and Solution Delivery. It offers financial services solutions, such as One Solution, a core banking solution; and CISv1, an end-to-end solution that addresses the business value chain for non-life insurance business eco-system.

Microlink Solutions Berhad Fundamentals Summary

How do Microlink Solutions Berhad's earnings and revenue compare to its market cap?
MICROLN fundamental statistics
Market CapRM641.29m
Earnings (TTM)RM25.47m
Revenue (TTM)RM218.31m

25.6x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MICROLN income statement (TTM)
RevenueRM218.31m
Cost of RevenueRM153.14m
Gross ProfitRM65.17m
Other ExpensesRM39.70m
EarningsRM25.47m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.024
Gross Margin29.85%
Net Profit Margin11.67%
Debt/Equity Ratio13.8%

How did MICROLN perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MICROLN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MICROLN 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/Revenue2.8x
Enterprise Value/EBITDA17.1x
PEG Ration/a

Price to Earnings Ratio vs Peers

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

MICROLN PE Ratio vs Peers
The above table shows the PE ratio for MICROLN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average17.5x
N2N N2N Connect Berhad
15.1x12.7%RM273.5m
IFCAMSC IFCA MSC Berhad
24.4xn/aRM178.5m
EFORCE Excel Force MSC Berhad
21.7xn/aRM243.3m
CENSOF Censof Holdings Berhad
8.8xn/aRM162.9m
MICROLN Microlink Solutions Berhad
25.6xn/aRM652.0m

Price-To-Earnings vs Peers: MICROLN is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the peer average (17.5x).


Price to Earnings Ratio vs Industry

How does MICROLN's PE Ratio compare vs other companies in the Asian Software Industry?

Price-To-Earnings vs Industry: MICROLN is expensive based on its Price-To-Earnings Ratio (25.6x) compared to the MY Software industry average (19.9x)


Price to Earnings Ratio vs Fair Ratio

What is MICROLN'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.

MICROLN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25.6x
Fair PE Ration/a

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


Share Price vs Fair Value

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

Below Fair Value: MICROLN (MYR0.61) is trading above our estimate of fair value (MYR0.42)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


Discover undervalued companies

Future Growth

How is Microlink Solutions 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


32.0%

Forecasted Software 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 Microlink Solutions 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

Past Performance

How has Microlink Solutions Berhad performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


53.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MICROLN has a high level of non-cash earnings.

Growing Profit Margin: MICROLN's current net profit margins (11.7%) are lower than last year (17.8%).


Past Earnings Growth Analysis

Earnings Trend: MICROLN's earnings have grown significantly by 53.2% per year over the past 5 years.

Accelerating Growth: MICROLN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MICROLN had negative earnings growth (-19.8%) over the past year, making it difficult to compare to the Software industry average (-18.1%).


Return on Equity

High ROE: MICROLN's Return on Equity (12.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Microlink Solutions Berhad's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MICROLN's short term assets (MYR173.7M) exceed its short term liabilities (MYR90.2M).

Long Term Liabilities: MICROLN's short term assets (MYR173.7M) exceed its long term liabilities (MYR9.9M).


Debt to Equity History and Analysis

Debt Level: MICROLN has more cash than its total debt.

Reducing Debt: MICROLN's debt to equity ratio has reduced from 55.7% to 13.8% over the past 5 years.

Debt Coverage: MICROLN's debt is well covered by operating cash flow (120.4%).

Interest Coverage: MICROLN's interest payments on its debt are well covered by EBIT (24.5x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is Microlink Solutions 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

  • Cash Flow Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate MICROLN'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 MICROLN's dividends per share have been stable in the past.

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


Earnings Payout to Shareholders

Earnings Coverage: MICROLN is not paying a notable dividend for the MY market.


Cash Payout to Shareholders

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


Discover strong dividend paying companies

Management

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

3.0yrs

Average management tenure


CEO

Yong Chia (46 yo)

6.33yrs

Tenure

Mr. Yong Wei Chia has been Group Chief Executive Officer of Microlink Solutions Berhad since April 1, 2016. Mr. Chia was Group Chief Technology Officer of Omesti Berhad (alternative name Formis Resources B...


Leadership Team

Experienced Management: MICROLN's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MICROLN's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 10.1%.


Top Shareholders

Company Information

Microlink Solutions Berhad's employee growth, exchange listings and data sources


Key Information

  • Name: Microlink Solutions Berhad
  • Ticker: MICROLN
  • Exchange: KLSE
  • Founded: 1994
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: RM641.286m
  • Shares outstanding: 1.07b
  • Website: https://www.microlink.com.my

Number of Employees


Location

  • Microlink Solutions Berhad
  • Ho Hup Tower-Aurora Place
  • 02-08-01 - Level 8
  • Kuala Lumpur
  • Wilayah Persekutuan
  • 57000
  • Malaysia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/15 00:00
End of Day Share Price2022/08/15 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.