Upcoming Dividend • Jan 15
Upcoming dividend of RM1.70 per share Eligible shareholders must have bought the stock before 22 January 2025. Payment date: 28 January 2025. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 1.8%. Lower than top quartile of Malaysian dividend payers (5.0%). Lower than average of industry peers (5.2%). Reported Earnings • Nov 20
Third quarter 2024 earnings released: RM0.001 loss per share (vs RM0.002 profit in 3Q 2023) Third quarter 2024 results: RM0.001 loss per share (down from RM0.002 profit in 3Q 2023). Revenue: RM11.0m (down 7.4% from 3Q 2023). Net loss: RM665.0k (down 161% from profit in 3Q 2023). Over the last 3 years on average, earnings per share has increased by 81% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Tillkännagivande • Oct 22
MPHB Capital Berhad Provides Material Litigation Update MPHB Capital Berhad provided Material Litigation update, Legal suit filed by ISM Sendirian Berhad (ISM or Plaintiff) against the Company and its subsidiaries, namely, Multi-Purpose Shipping Corporation Sdn Bhd, Queensway Nominees (Asing) Sdn Bhd, Queensway Nominees (Tempatan) Sdn Bhd, West-Jaya Sdn Bhd, Mulpha Kluang Maritime Carriers Sdn Bhd and Leisure Dotcom Sdn Bhd ("the Subsidiaries") as well as its respective directors (collectively referred to hereinafter as the Defendants). Further to the Company’s quarterly announcement dated 22 August 2024, the Company announced the following: The Court of Appeal delivered a unanimous decision in the Defendants’ Appeal in the Appeal No. W-02(NCC)(W)-1220-07/2019 on 21 October 2024 allowing the Defendants’ appeal in total and thereby set aside the decision of the High Court delivered on 21 June 2019. The Court of Appeal also disallowed the Company’s counterclaim and ordered the Plaintiff to pay the Defendants costs in the sum of MYR 200,000.00 subject to payment of allocator by the Plaintiff. The Court of Appeal also dismissed the Plaintiff’s Appeal in the Appeal No. W-02(NCC)(W)-1341-07/2019 with no order as to costs. The effect of the Court of Appeal’s decisions delivered on 21 October 2024 is that there is no judgment or order in respect of the damages or oppression made against the Defendants. The consent stay order made on 13 September 2019 is no longer in effect. The Defendants will have to recover from the Plaintiff the sum of MYR 10,000.00 being the nominal damages awarded by the High Court on 21 June 2019 which was previously paid by the Defendants, as well as the costs of MYR 200,000.00 awarded by the Court of Appeal. Reported Earnings • Aug 23
Second quarter 2024 earnings released: EPS: RM0.003 (vs RM0.008 in 2Q 2023) Second quarter 2024 results: EPS: RM0.003 (down from RM0.008 in 2Q 2023). Revenue: RM10.5m (up 54% from 2Q 2023). Net income: RM1.95m (down 64% from 2Q 2023). Profit margin: 19% (down from 80% in 2Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 98% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Declared Dividend • May 29
Dividend of RM0.03 announced Shareholders will receive a dividend of RM0.03. Ex-date: 11th June 2024 Payment date: 26th June 2024 Dividend yield will be 1.8%, which is lower than the industry average of 4.4%. Sustainability & Growth Dividend is not covered by earnings (145% earnings payout ratio) and the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has remained flat since 10 years ago. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 61% to bring the payout ratio under control. However, EPS has declined by 2.5% over the last 5 years so the company would need to reverse this trend. Reported Earnings • May 28
First quarter 2024 earnings released: EPS: RM0.012 (vs RM0.012 in 1Q 2023) First quarter 2024 results: EPS: RM0.012 (in line with 1Q 2023). Revenue: RM8.77m (down 26% from 1Q 2023). Net income: RM8.29m (down 5.0% from 1Q 2023). Profit margin: 95% (up from 74% in 1Q 2023). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 101% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to RM1.41, the stock trades at a trailing P/E ratio of 40.7x. Average trailing P/E is 28x in the Hospitality industry in Malaysia. Total returns to shareholders of 77% over the past three years. Tillkännagivande • May 01
MPHB Capital Berhad, Annual General Meeting, May 29, 2024 MPHB Capital Berhad, Annual General Meeting, May 29, 2024, at 14:30 Singapore Standard Time. Location: 35th Floor, Menara Multi-Purpose, Capital Square, No. 8, Jalan Munshi Abdullah, 50100 Kuala Lumpur Kuala Lumpur Malaysia Agenda: To receive the Report of the Directors and the Audited Financial Statements for the year ended 31 December 2023 together with the Report of the Auditors thereon; to consider and approve the payment of Directors' fees amounting to MYR 360,000 in respect of the year ended 31 December 2023; to consider and re-elect Mr Kuah Hun Liang who retires by rotation in accordance with Article 120 of the Company's Constitution; and to transact such other business matters. Reported Earnings • Mar 01
Full year 2023 earnings released: EPS: RM0.035 (vs RM0.02 in FY 2022) Full year 2023 results: EPS: RM0.035 (up from RM0.02 in FY 2022). Revenue: RM39.2m (down 41% from FY 2022). Net income: RM24.3m (up 66% from FY 2022). Profit margin: 62% (up from 22% in FY 2022). The increase in margin was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 106% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Nov 25
New major risk - Revenue and earnings growth Earnings have declined by 12% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risks Dividend is not well covered by earnings and cash flows. Payout ratio: 136% Paying a dividend despite having no free cash flows. Earnings have declined by 12% per year over the past 5 years. New Risk • Nov 23
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 62% Last year net profit margin: 339% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 135% Paying a dividend despite having no free cash flows. Minor Risk Profit margins are more than 30% lower than last year (62% net profit margin). Reported Earnings • Aug 18
Second quarter 2023 earnings released: EPS: RM0.008 (vs RM0.009 loss in 2Q 2022) Second quarter 2023 results: EPS: RM0.008 (up from RM0.009 loss in 2Q 2022). Revenue: RM8.48m (down 7.7% from 2Q 2022). Net income: RM5.46m (up RM12.2m from 2Q 2022). Profit margin: 64% (up from net loss in 2Q 2022). The move to profitability was driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • May 25
Upcoming dividend of RM0.05 per share at 4.8% yield Eligible shareholders must have bought the stock before 01 June 2023. Payment date: 20 June 2023. The company is paying out more than 100% of its profits and is cash flow negative. Trailing yield: 4.8%. Lower than top quartile of Malaysian dividend payers (5.3%). In line with average of industry peers (4.9%). Tillkännagivande • May 19
MPHB Capital Berhad Announces Single Tier Interim Dividend for the Financial Year Ended December 31, 2023, Payable on June 20, 2023 MPHB Capital Berhad announced Single Tier Interim Dividend of 5 sen per ordinary share for the financial year ended December 31, 2023, ex-date as 1 June 2023, entitlement date as 2 June 2023 and payable date is 20 June 2023. Reported Earnings • May 19
First quarter 2023 earnings released: EPS: RM0.012 (vs RM0.003 loss in 1Q 2022) First quarter 2023 results: EPS: RM0.012 (up from RM0.003 loss in 1Q 2022). Revenue: RM9.52m (up 7.3% from 1Q 2022). Net income: RM8.73m (up RM11.2m from 1Q 2022). Profit margin: 92% (up from net loss in 1Q 2022). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has increased by 84% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Reported Earnings • Mar 02
Full year 2022 earnings released: EPS: RM0.27 (vs RM0.006 loss in FY 2021) Full year 2022 results: EPS: RM0.27 (up from RM0.006 loss in FY 2021). Revenue: RM66.2m (up 245% from FY 2021). Net income: RM194.5m (up RM198.9m from FY 2021). Over the last 3 years on average, earnings per share has increased by 96% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 25
Third quarter 2022 earnings released: EPS: RM0.26 (vs RM0.015 loss in 3Q 2021) Third quarter 2022 results: EPS: RM0.26 (up from RM0.015 loss in 3Q 2021). Revenue: RM34.3m (up RM30.1m from 3Q 2021). Net income: RM188.5m (up RM199.2m from 3Q 2021). 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 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Oct 24
Upcoming dividend of RM0.40 per share Eligible shareholders must have bought the stock before 31 October 2022. Payment date: 15 November 2022. The company last paid an ordinary dividend in February 2014. The average dividend yield among industry peers is 4.1%. Tillkännagivande • Aug 30
MPHB Capital Berhad Announces Single Tier Interim Dividend for the Financial Year Ended December 31, 2022, Payable on September 28, 2022 MPHB Capital Berhad announced Single Tier Interim Dividend of 5 sen per ordinary share for the financial year ended December 31, 2022, ex-date as September 13, 2022, entitlement date as September 14, 2022 and payable date is September 28, 2022. Reported Earnings • Aug 21
Second quarter 2022 earnings released: RM0.009 loss per share (vs RM0.007 loss in 2Q 2021) Second quarter 2022 results: RM0.009 loss per share (down from RM0.007 loss in 2Q 2021). Net loss: RM6.76m (loss widened 28% from 2Q 2021). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Reported Earnings • May 22
First quarter 2022 earnings released: RM0.003 loss per share (vs RM0.029 loss in 1Q 2021) First quarter 2022 results: RM0.003 loss per share (up from RM0.029 loss in 1Q 2021). Revenue: RM8.87m (down 93% from 1Q 2021). Net loss: RM2.44m (loss narrowed 88% from 1Q 2021). Over the last 3 years on average, earnings per share has fallen by 61% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Tillkännagivande • May 21
MPHB Capital Berhad Intends to Declare A Dividend MPHB Capital Berhad intended to declare a dividend of MYR 0.05 per MPHB Share to the shareholders whose names appear on the Company's Record of Depositors on an entitlement date to be determined subsequent to the completion of the Proposed Disposal. 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. 4 highly experienced directors. Non-Independent Non-Executive Director Surin Upatkoon was the last director to join the board, commencing their role in 2016. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Feb 24
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: RM0.043 loss per share (down from RM0.019 profit in FY 2020). Net loss: RM31.1m (down 325% from profit in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the last 3 years on average, earnings per share has fallen by 58% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Reported Earnings • Nov 26
Third quarter 2021 earnings: EPS exceeds analyst expectations Third quarter 2021 results: EPS: RM0.016 (down from RM0.019 in 3Q 2020). Revenue: RM113.4m (down 15% from 3Q 2020). Net income: RM11.5m (down 16% from 3Q 2020). Profit margin: 10% (in line with 3Q 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 111%. Earnings per share (EPS) surpassed analyst estimates by 111%. Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Aug 27
Second quarter 2021 earnings released: EPS RM0.02 (vs RM0.036 in 2Q 2020) The company reported a mediocre second quarter result with weaker earnings and profit margins, although revenues improved. Second quarter 2021 results: Revenue: RM121.1m (up 34% from 2Q 2020). Net income: RM14.1m (down 45% from 2Q 2020). Profit margin: 12% (down from 28% in 2Q 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Jun 29
Investor sentiment deteriorated over the past week After last week's 15% share price decline to RM1.45, the stock trades at a trailing P/E ratio of 45.8x. Average trailing P/E is 11x in the Insurance industry in Asia. Total returns to shareholders of 14% over the past three years. Valuation Update With 7 Day Price Move • Jun 11
Investor sentiment improved over the past week After last week's 24% share price gain to RM1.59, the stock trades at a trailing P/E ratio of 50.2x. Average trailing P/E is 12x in the Insurance industry in Asia. Total returns to shareholders of 23% over the past three years. Reported Earnings • May 20
First quarter 2021 earnings released: RM0.029 loss per share (vs RM0.042 loss in 1Q 2020) The company reported a solid first quarter result with reduced losses, improved revenues and improved control over expenses. First quarter 2021 results: Revenue: RM119.1m (up 10.0% from 1Q 2020). Net loss: RM20.9m (loss narrowed 30% from 1Q 2020). Over the last 3 years on average, earnings per share has fallen by 62% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Reported Earnings • Apr 25
Full year 2020 earnings released: EPS RM0.019 (vs RM0.044 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM458.6m (down 3.2% from FY 2019). Net income: RM13.8m (down 56% from FY 2019). Profit margin: 3.0% (down from 6.6% in FY 2019). Combined ratio: 87.2% (down from 92.2% in FY 2019). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 73 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Mar 04
Investor sentiment improved over the past week After last week's 37% share price gain to RM1.40, the stock is trading at a trailing P/E ratio of 79.4x, up from the previous P/E ratio of 57.8x. This compares to an average P/E of 13x in the Insurance industry in Asia. Total returns to shareholders over the past three years were flat. Is New 90 Day High Low • Mar 04
New 90-day high: RM1.40 The company is up 41% from its price of RM0.99 on 04 December 2020. The Malaysian market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 3.0% over the same period. Reported Earnings • Feb 27
Full year 2020 earnings released: EPS RM0.018 (vs RM0.044 in FY 2019) The company reported a poor full year result with weaker earnings, revenues and profit margins. Full year 2020 results: Revenue: RM443.3m (down 6.5% from FY 2019). Net income: RM12.6m (down 60% from FY 2019). Profit margin: 2.8% (down from 6.6% in FY 2019). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has fallen by 72% 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. Is New 90 Day High Low • Dec 02
New 90-day high: RM1.01 The company is up 15% from its price of RM0.88 on 03 September 2020. The Malaysian market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is up 8.0% over the same period. Reported Earnings • Nov 26
Third quarter 2020 earnings released: EPS RM0.019 The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2020 results: Revenue: RM130.0m (up 8.0% from 3Q 2019). Net income: RM13.7m (up 180% from 3Q 2019). Profit margin: 11% (up from 4.1% in 3Q 2019). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 68% per year but the company’s share price has only fallen by 10% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Oct 12
New 90-day high: RM0.99 The company is up 27% from its price of RM0.79 on 14 July 2020. The Malaysian market is down 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Insurance industry, which is down 3.0% over the same period. Tillkännagivande • Oct 06
Multi-Purpose Capital Receives Approval for Potential MPI Generali Stake Sale Multi-Purpose Capital Holdings Berhad has received approval in principle from the Bank of Negara Malaysia for the potential disposal of up to its entire 51% stake in MPI Generali Insurans Berhad. The approval allows the MPHB Capital Berhad (KLSE:MPHBCAP) subsidiary to commence discussions and enter into negotiations with Generali Asia N.V. for the potential transaction.