Board Change • Aug 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. Group CFO & Executive Director Jiang Hun was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jul 15
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to RM1.02, the stock trades at a forward P/E ratio of 28x. Average forward P/E is 17x in the Machinery industry in Malaysia. Total returns to shareholders of 22% over the past year. Major Estimate Revision • Jun 01
Consensus EPS estimates fall by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate fell from RM0.027 to RM0.024. Revenue forecast unchanged from RM121.4m at last update. Net income forecast to grow 79% next year vs 80% growth forecast for Machinery industry in Malaysia. Consensus price target up from RM0.66 to RM1.05. Share price rose 2.4% to RM0.84 over the past week. New Risk • May 26
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: 12% Last year net profit margin: 19% 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: 125% Dividend per share is over 26x cash flows per share. Minor Risks Share price has been volatile over the past 3 months (11% average weekly change). Profit margins are more than 30% lower than last year (12% net profit margin). Reported Earnings • May 26
Third quarter 2026 earnings released: EPS: RM0.008 (vs RM0.011 in 3Q 2025) Third quarter 2026 results: EPS: RM0.008 (down from RM0.011 in 3Q 2025). Revenue: RM30.7m (down 10% from 3Q 2025). Net income: RM5.08m (down 34% from 3Q 2025). Profit margin: 17% (down from 22% in 3Q 2025). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Malaysia. Buy Or Sell Opportunity • Apr 16
Now 29% overvalued The stock has been flat over the last 90 days, currently trading at RM0.56. The fair value is estimated to be RM0.44, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 8.5% over the last year. Earnings per share has declined by 19%. Revenue is forecast to grow by 17% in 2 years. Earnings are forecast to grow by 69% in the next 2 years. New Risk • Apr 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 8.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 126% Cash payout ratio: 174% Minor Risks Share price has been volatile over the past 3 months (8.6% average weekly change). Market cap is less than US$100m (RM332.3m market cap, or US$83.8m). New Risk • Feb 11
New major risk - Dividend sustainability The dividend is not well covered by earnings and cash flows. Payout ratio: 126% Cash payout ratio: 174% Dividend yield: 6.7% This is considered a major risk. Companies that pay out too much of their earnings and cash flows are at risk of having to reduce or cut their dividend in future. If earnings or cash flows stagnate or fall, then there may not be enough to maintain the same dividend. Or in extreme cases, companies may opt to dig into capital reserves or take on debt to maintain the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Dividend is not well covered by earnings and cash flows. Payout ratio: 126% Cash payout ratio: 174% Minor Risk Market cap is less than US$100m (RM322.2m market cap, or US$82.1m). Buy Or Sell Opportunity • Jan 15
Now 25% overvalued Over the last 90 days, the stock has fallen 25% to RM0.57. The fair value is estimated to be RM0.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last year. Earnings per share has grown by 118%. Revenue is forecast to grow by 8.0% in 2 years. Earnings are forecast to grow by 9.5% in the next 2 years. Buy Or Sell Opportunity • Dec 03
Now 25% overvalued Over the last 90 days, the stock has fallen 15% to RM0.57. The fair value is estimated to be RM0.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 30% over the last year. Earnings per share has grown by 118%. Revenue is forecast to grow by 8.0% in 2 years. Earnings are forecast to grow by 9.5% in the next 2 years. Upcoming Dividend • Dec 02
Upcoming dividend of RM0.015 per share Eligible shareholders must have bought the stock before 09 December 2025. Payment date: 23 December 2025. Payout ratio is a comfortable 41% but the company is paying out more than the cash it is generating. Trailing yield: 5.5%. Lower than top quartile of Malaysian dividend payers (5.6%). Higher than average of industry peers (2.4%). New Risk • Nov 28
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM412.9m (US$99.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (20% accrual ratio). Minor Risks Dividend is not well covered by cash flows (dividend per share is over 24x cash flows per share). Market cap is less than US$100m (RM412.9m market cap, or US$99.9m). Price Target Changed • Nov 27
Price target decreased by 17% to RM0.83 Down from RM1.00, the current price target is provided by 1 analyst. New target price is 27% above last closing price of RM0.66. Stock is down 27% over the past year. The company is forecast to post earnings per share of RM0.027 for next year compared to RM0.035 last year. Reported Earnings • Nov 25
First quarter 2026 earnings released: EPS: RM0.005 (vs RM0.003 in 1Q 2025) First quarter 2026 results: EPS: RM0.005 (up from RM0.003 in 1Q 2025). Revenue: RM25.4m (down 13% from 1Q 2025). Net income: RM3.35m (up 47% from 1Q 2025). Profit margin: 13% (up from 7.8% in 1Q 2025). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Machinery industry in Malaysia. Reported Earnings • Oct 25
Full year 2025 earnings released: EPS: RM0.035 (vs RM0.019 in FY 2024) Full year 2025 results: EPS: RM0.035 (up from RM0.019 in FY 2024). Revenue: RM129.1m (up 43% from FY 2024). Net income: RM23.6m (up 113% from FY 2024). Profit margin: 18% (up from 12% in FY 2024). The increase in margin was driven by higher revenue. Revenue is forecast to grow 4.5% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Machinery industry in Malaysia. Declared Dividend • Oct 24
Dividend of RM0.015 announced Shareholders will receive a dividend of RM0.015. Ex-date: 9th December 2025 Payment date: 23rd December 2025 Dividend yield will be 2.0%, which is lower than the industry average of 3.5%. Sustainability & Growth Dividend is covered by earnings (34% earnings payout ratio) but not adequately covered by cash flows (96% cash payout ratio). The dividend has decreased over the past 26 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 21% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Aug 23
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to RM0.75. The fair value is estimated to be RM0.62, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 8.2% over the last 3 years. Earnings per share has declined by 38%. Revenue is forecast to grow by 8.6% in 2 years. Earnings are forecast to grow by 19% in the next 2 years. Board Change • Jul 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 7 experienced directors. No highly experienced directors. Independent Non-Executive Director Wei Tham was the last director to join the board, commencing their role in 2023. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • May 21
Third quarter 2025 earnings released: EPS: RM0.011 (vs RM0.004 in 3Q 2024) Third quarter 2025 results: EPS: RM0.011 (up from RM0.004 in 3Q 2024). Revenue: RM34.2m (up 48% from 3Q 2024). Net income: RM7.64m (up 198% from 3Q 2024). Profit margin: 22% (up from 11% in 3Q 2024). The increase in margin was driven by higher revenue. New Risk • Apr 07
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 9.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.7% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (169% cash payout ratio). Share price has been volatile over the past 3 months (9.1% average weekly change). Market cap is less than US$100m (RM335.7m market cap, or US$74.9m). New Risk • Mar 10
New minor risk - Market cap size The company's market capitalization is less than US$100m. Market cap: RM433.0m (US$97.9m) This is considered a minor risk. Companies with a small market capitalization are most likely businesses that have not yet released a product to market or are simply a very small company without a wide reach. Either way, risk is elevated with these companies because there is a chance the product may not come to fruition or the company's addressable market or demand may not be as large as expected. In addition, if the company's size is the main factor, it is less likely to have many investors and analysts following it and scrutinizing its performance and outlook. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.7% per year over the past 5 years. Minor Risks Dividend is not well covered by cash flows (169% cash payout ratio). Market cap is less than US$100m (RM433.0m market cap, or US$97.9m). Reported Earnings • Feb 15
Second quarter 2025 earnings released: EPS: RM0.016 (vs RM0.004 in 2Q 2024) Second quarter 2025 results: EPS: RM0.016 (up from RM0.004 in 2Q 2024). Revenue: RM33.2m (up 43% from 2Q 2024). Net income: RM10.5m (up 308% from 2Q 2024). Profit margin: 32% (up from 11% in 2Q 2024). The increase in margin was driven by higher revenue. Upcoming Dividend • Dec 02
Upcoming dividend of RM0.01 per share Eligible shareholders must have bought the stock before 09 December 2024. Payment date: 23 December 2024. Payout ratio is a comfortable 68% and this is well supported by cash flows. Trailing yield: 1.3%. Lower than top quartile of Malaysian dividend payers (5.0%). Lower than average of industry peers (1.8%). New Risk • Nov 28
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Malaysian stocks, typically moving 6.9% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 4.9% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (6.9% average weekly change). Profit margins are more than 30% lower than last year (11% net profit margin). Duyuru • Nov 26
CPE Technology Berhad Declares Single Tier First Interim Dividend in Respect of the Financial Year Ending 30 June 2025, Payable on 23 December 2024 The Board of Directors of CPE announced that a Single Tier First Interim Dividend of MYR 0.01 per share in respect of Financial Year Ending 30 June 2025 has been declared payable on 23 December 2024 to shareholders whose name appear in the Record of Depositors at the close of business on 10 December 2024. Reported Earnings • Nov 21
First quarter 2025 earnings released First quarter 2025 results: EPS: RM0.003. Net income: RM2.28m (up RM2.28m from 1Q 2024). Duyuru • Oct 30
CPE Technology Berhad, Annual General Meeting, Dec 13, 2024 CPE Technology Berhad, Annual General Meeting, Dec 13, 2024, at 10:00 Singapore Standard Time. Reported Earnings • Aug 24
Full year 2024 earnings released: EPS: RM0.019 (vs RM0.06 in FY 2023) Full year 2024 results: EPS: RM0.019 (down from RM0.06 in FY 2023). Revenue: RM90.1m (down 38% from FY 2023). Net income: RM11.1m (down 63% from FY 2023). Profit margin: 12% (down from 21% in FY 2023). The decrease in margin was driven by lower revenue. Buy Or Sell Opportunity • Aug 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 2.4% to RM1.24. The fair value is estimated to be RM1.57, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.6% over the last year. Earnings per share has declined by 11%. New Risk • Jun 08
New minor risk - Financial data availability The company's latest financial reports are more than 6 months old. Last reported fiscal period ended June 2023. This is considered a minor risk. If the company has not reported its earnings on time, it may have been delayed due to audit problems or it may be finding it difficult to reconcile its accounts. This is currently the only risk that has been identified for the company. Duyuru • Apr 18
CPE Technology Berhad Announces A Single Tier First Interim Dividend for the Financial Year Ending 30 June 2024 The Board of Directors of CPE Technology Berhad announced that a Single Tier First Interim Dividend of 1.15 sen per share in respect of Financial Year Ending 30 June 2024 has been declared payable on 30 May 2024 to shareholders whose name appear in the Record of Depositors at the close of business on 02 May 2024. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to RM1.30, the stock trades at a trailing P/E ratio of 28.8x. Average forward P/E is 18x in the Machinery industry in Malaysia. Buy Or Sell Opportunity • Mar 07
Now 21% undervalued Over the last 90 days, the stock has risen 7.1% to RM1.06. The fair value is estimated to be RM1.34, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 31%. Buy Or Sell Opportunity • Jan 22
Now 20% undervalued The stock has been flat over the last 90 days, currently trading at RM0.98. The fair value is estimated to be RM1.23, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 31%. Buying Opportunity • Jan 02
Now 23% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be RM1.24, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 31%. Buying Opportunity • Dec 07
Now 27% undervalued The stock has been flat over the last 90 days. The fair value is estimated to be RM1.25, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 22% over the last 3 years. Earnings per share has grown by 31%. Board Change • Dec 07
High number of new and inexperienced directors There are 8 new directors who have joined the board in the last 3 years. The company's board is composed of: 8 new directors. No experienced directors. No highly experienced directors. Executive Director Derrick Mu is the most experienced director on the board, commencing their role in 2021. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors.