Mlabs Systems Berhad (KLSE:MLAB) - Share price, News & Analysis

MLAB fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

MLAB Stock Overview

Mlabs Systems Berhad, an investment holding company, researches, develops, assembles, and trades in multimedia video conferencing systems and equipment primarily in Malaysia.

Risk Analysis

Earnings have declined by 42.3% per year over past 5 years

Highly volatile share price over the past 3 months

Makes less than USD$1m in revenue (MYR-6M)

Does not have a meaningful market cap (MYR36M)

+ 1 more risk

Mlabs Systems Berhad Competitors

Green Packet Berhad

KLSE:GPACKET

RM79.8m

SMTrack Berhad

KLSE:SMTRACK

RM36.9m

UCrest Berhad

KLSE:UCREST

RM59.1m

Opcom Holdings Berhad

KLSE:OPCOM

RM241.4m

Price History & Performance

Summary of all time highs, changes and price drops for Mlabs Systems Berhad
Historical stock prices
Current Share Price	RM0.025
52 Week High	RM0.05
52 Week Low	RM0.02
Beta	0.73
1 Month Change	25.00%
3 Month Change	-16.67%
1 Year Change	-44.44%
3 Year Change	-93.75%
5 Year Change	-98.53%
Change since IPO	-99.37%

Shareholder Returns

	MLAB	MY Communications	MY Market
7D	0%	-4.5%	0.5%
1Y	-44.4%	-44.8%	-3.1%

Return vs Industry: MLAB matched the MY Communications industry which returned -44.8% over the past year.

Return vs Market: MLAB underperformed the MY Market which returned -3.1% over the past year.

Price Volatility

Is MLAB's price volatile compared to industry and market?
MLAB volatility
MLAB Average Weekly Movement	31.3%
Communications Industry Average Movement	6.4%
Market Average Movement	5.5%
10% most volatile stocks in MY Market	11.5%
10% least volatile stocks in MY Market	2.8%

Stable Share Price: MLAB is more volatile than 90% of MY stocks over the past 3 months, typically moving +/- 31% a week.

Volatility Over Time: MLAB's weekly volatility has increased from 23% to 31% over the past year.

About the Company

Founded	Employees	CEO	Website
1997	57	Kiat Hui	https://www.mlabs.com

Mlabs Systems Berhad, an investment holding company, researches, develops, assembles, and trades in multimedia video conferencing systems and equipment primarily in Malaysia. It operates in three segments: Research and Development, and Assembling; Trading; and Film Production. The company provides software development and engineering; financial technology legal consultation; and digital crypto currency market analysis services, as well as distributes and supplies alcoholic beverages.

Mlabs Systems Berhad Fundamentals Summary

How do Mlabs Systems Berhad's earnings and revenue compare to its market cap?
MLAB fundamental statistics
Market Cap	RM36.24m
Earnings (TTM)	-RM8.39m
Revenue (TTM)	n/a

-6.3x

P/S Ratio

-4.3x

P/E Ratio

Is MLAB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MLAB income statement (TTM)
Revenue	-RM5.77m
Cost of Revenue	-RM8.19m
Gross Profit	RM2.42m
Other Expenses	RM10.81m
Earnings	-RM8.39m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.0058
Gross Margin	-42.01%
Net Profit Margin	145.53%
Debt/Equity Ratio	0.6%

How did MLAB perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MLAB 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-Book vs Peers
Price-To-Book vs Industry
Price-To-Book 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 MLAB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MLAB. This is calculated by dividing MLAB's market cap by their current preferred multiple.
What is MLAB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	RM36.24m

MLAB 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	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does MLAB's PB Ratio compare to its peers?

MLAB PB Ratio vs Peers

The above table shows the PB ratio for MLAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	1.4x
GPACKET Green Packet Berhad	1x	n/a	RM79.8m
SMTRACK SMTrack Berhad	0.8x	n/a	RM36.9m
UCREST UCrest Berhad	2.3x	n/a	RM59.1m
OPCOM Opcom Holdings Berhad	1.5x	n/a	RM241.4m
MLAB Mlabs Systems Berhad	0.3x	n/a	RM36.2m

Price-To-Book vs Peers: MLAB is good value based on its Price-To-Book Ratio (0.3x) compared to the peer average (1.4x).

Price to Earnings Ratio vs Industry

How does MLAB's PE Ratio compare vs other companies in the Asian Communications Industry?

Price-To-Book vs Industry: MLAB is good value based on its Price-To-Book Ratio (0.3x) compared to the MY Communications industry average (1x)

Price to Book Ratio vs Fair Ratio

What is MLAB's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MLAB PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	0.3x
Fair PB Ratio	n/a

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

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate MLAB's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate MLAB's fair value for valuation analysis.

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.

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Future Growth

How is Mlabs Systems 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

26.8%

Forecasted Tech 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 Mlabs Systems 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.

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Examine Mlabs Systems Berhad's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.

Past Performance

How has Mlabs Systems Berhad performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-42.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MLAB is currently unprofitable.

Growing Profit Margin: MLAB is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: MLAB is unprofitable, and losses have increased over the past 5 years at a rate of 42.3% per year.

Accelerating Growth: Unable to compare MLAB's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MLAB is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (10.3%).

Return on Equity

High ROE: MLAB has a negative Return on Equity (-6.69%), as it is currently unprofitable.

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Financial Health

How is Mlabs Systems Berhad's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: MLAB's short term assets (MYR85.5M) exceed its short term liabilities (MYR12.9M).

Long Term Liabilities: MLAB's short term assets (MYR85.5M) exceed its long term liabilities (MYR167.0K).

Debt to Equity History and Analysis

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

Reducing Debt: Insufficient data to determine if MLAB's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: MLAB has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MLAB has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of 20.9% each year

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Dividend

What is Mlabs Systems 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 MLAB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if MLAB'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 MLAB has not reported any payouts.

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Management

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

2.7yrs

Average management tenure

CEO

Kiat Hui (49 yo)

0.83

Tenure

Mr. Kiat Bin Hui serves as Chief Executive Officer at Mlabs Systems Berhad since October 1, 2021. He has IT experience having worked at IBM Malaysia, Microsoft Malaysia and Dell Malaysia. He was based in C...

Leadership Team

Experienced Management: MLAB's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: MLAB's board of directors are seasoned and experienced ( 12.7 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 been diluted in the past year, with total shares outstanding growing by 20%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30