Major Estimate Revision • Jun 02
Consensus revenue estimates fall by 13% The consensus outlook for revenues in fiscal year 2026 has deteriorated. 2026 revenue forecast decreased from RM1.43b to RM1.25b. EPS estimate fell from RM0.123 to RM0.113 per share. Net income forecast to grow 107% next year vs 10% growth forecast for Basic Materials industry in Malaysia. Consensus price target down from RM1.65 to RM1.39. Share price was steady at RM1.13 over the past week. Upcoming Dividend • May 28
Upcoming dividend of RM0.03 per share Eligible shareholders must have bought the stock before 04 June 2026. Payment date: 26 June 2026. Payout ratio is a comfortable 50% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Malaysian dividend payers (5.4%). Higher than average of industry peers (2.2%). Reported Earnings • May 26
First quarter 2026 earnings released: EPS: RM0.022 (vs RM0.024 in 1Q 2025) First quarter 2026 results: EPS: RM0.022 (down from RM0.024 in 1Q 2025). Revenue: RM278.5m (up 13% from 1Q 2025). Net income: RM24.1m (down 5.0% from 1Q 2025). Profit margin: 8.6% (down from 10% in 1Q 2025). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 2.3% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 38% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Declared Dividend • Apr 25
Dividend of RM0.03 announced Dividend of RM0.03 is the same as last year. Ex-date: 4th June 2026 Payment date: 26th June 2026 Dividend yield will be 2.6%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by both earnings (49% earnings payout ratio) and cash flows (40% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 116% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Duyuru • Apr 23
Cahya Mata Sarawak Berhad, Annual General Meeting, May 25, 2026 Cahya Mata Sarawak Berhad, Annual General Meeting, May 25, 2026, at 15:00 Singapore Standard Time. Location: grand ballroom, lobby floor, hilton kuching hotel, no. 1, jalan tunku abdul rahman, 93100 kuching, sarawak, Malaysia Reported Earnings • Feb 25
Full year 2025 earnings released: EPS: RM0.061 (vs RM0.12 in FY 2024) Full year 2025 results: EPS: RM0.061 (down from RM0.12 in FY 2024). Revenue: RM1.11b (down 7.3% from FY 2024). Net income: RM65.7m (down 49% from FY 2024). Profit margin: 5.9% (down from 11% in FY 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 12% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Major Estimate Revision • Dec 24
Consensus revenue estimates fall by 10% The consensus outlook for revenues in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from RM1.46b to RM1.31b. EPS estimate fell from RM0.135 to RM0.13 per share. Net income forecast to grow 34% next year vs 17% growth forecast for Basic Materials industry in Malaysia. Consensus price target up from RM1.58 to RM1.68. Share price was steady at RM1.47 over the past week. Duyuru • Nov 29
Cahya Mata Sarawak Berhad Announces the Retirement of Khor Jaw Huei as Independent Director, Effective November 26, 2025 Cahya Mata Sarawak Berhad announced the retirement of Dr. Khor Jaw Huei, aged 75, Malaysian, from his position as Independent Director, effective November 26, 2025. His directorate is Independent and Non-Executive. Reported Earnings • Nov 26
Third quarter 2025 earnings released: EPS: RM0.03 (vs RM0.009 loss in 3Q 2024) Third quarter 2025 results: EPS: RM0.03 (up from RM0.009 loss in 3Q 2024). Revenue: RM305.4m (up 1.8% from 3Q 2024). Net income: RM32.1m (up RM41.3m from 3Q 2024). Profit margin: 11% (up from net loss in 3Q 2024). The move to profitability was primarily driven by lower expenses. Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • Oct 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to RM1.35, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 15x in the Basic Materials industry in Asia. Total returns to shareholders of 74% over the past three years. Reported Earnings • Aug 21
Second quarter 2025 earnings released: RM0.01 loss per share (vs RM0.031 profit in 2Q 2024) Second quarter 2025 results: RM0.01 loss per share (down from RM0.031 profit in 2Q 2024). Revenue: RM246.9m (down 11% from 2Q 2024). Net loss: RM11.3m (down 134% from profit in 2Q 2024). Revenue is forecast to grow 18% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 40% per year but the company’s share price has increased by 6% per year, which means it is well ahead of earnings. Buy Or Sell Opportunity • Aug 06
Now 20% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to RM1.19. The fair value is estimated to be RM0.99, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 32%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 48% in the next 2 years. New Risk • Jul 29
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 7.4% 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: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.4% average weekly change). Buy Or Sell Opportunity • Jun 24
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 15% to RM1.13. The fair value is estimated to be RM0.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has declined by 32%. Revenue is forecast to grow by 52% in 2 years. Earnings are forecast to grow by 48% in the next 2 years. Duyuru • May 30
Cahya Mata Sarawak Berhad Declares First and Final Tax Exempt Dividend for the Financial Year Ended 31 December 2024 Cahya Mata Sarawak Berhad, at its AGM held on May 30, 2025 declared first and final tax exempt (single-tier) dividend of 3.0 sen per ordinary share in respect of the financial year ended 31 December 2024. Upcoming Dividend • May 28
Upcoming dividend of RM0.03 per share Eligible shareholders must have bought the stock before 04 June 2025. Payment date: 26 June 2025. Payout ratio is a comfortable 28% and this is well supported by cash flows. Trailing yield: 2.4%. Lower than top quartile of Malaysian dividend payers (5.6%). In line with average of industry peers (2.5%). Price Target Changed • May 24
Price target increased by 7.9% to RM1.50 Up from RM1.39, the current price target is an average from 2 analysts. New target price is 26% above last closing price of RM1.19. Stock is up 2.6% over the past year. The company is forecast to post earnings per share of RM0.15 for next year compared to RM0.12 last year. Reported Earnings • May 23
First quarter 2025 earnings released: EPS: RM0.024 (vs RM0.036 in 1Q 2024) First quarter 2025 results: EPS: RM0.024 (down from RM0.036 in 1Q 2024). Revenue: RM246.1m (down 11% from 1Q 2024). Net income: RM25.3m (down 34% from 1Q 2024). Profit margin: 10% (down from 14% in 1Q 2024). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 16% p.a. on average during the next 3 years, compared to a 2.6% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to RM1.20, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 15x in the Basic Materials industry in Asia. Total returns to shareholders of 17% over the past three years. Declared Dividend • May 01
Dividend increased to RM0.03 Dividend of RM0.03 is 50% higher than last year. Ex-date: 4th June 2025 Payment date: 26th June 2025 Dividend yield will be 3.2%, which is higher than the industry average of 2.5%. Sustainability & Growth Dividend is covered by earnings (25% earnings payout ratio) but not covered by cash flows (153% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 37% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Duyuru • Apr 29
Cahya Mata Sarawak Berhad, Annual General Meeting, May 30, 2025 Cahya Mata Sarawak Berhad, Annual General Meeting, May 30, 2025, at 15:00 Singapore Standard Time. Location: ranyai ballroom, level 4, the waterfront hotel, 68, jalan tun abang haji openg, 93000 kuching, sarawak, Malaysia Major Estimate Revision • Mar 03
Consensus revenue estimates increase by 14%, EPS downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from RM1.29b to RM1.46b. EPS estimate fell from RM0.154 to RM0.146. Net income forecast to grow 22% next year vs 28% growth forecast for Basic Materials industry in Malaysia. Consensus price target up from RM1.56 to RM1.60. Share price fell 2.7% to RM1.07 over the past week. New Risk • Feb 20
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: 153% Dividend yield: 2.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Reported Earnings • Feb 19
Full year 2024 earnings released: EPS: RM0.12 (vs RM0.11 in FY 2023) Full year 2024 results: EPS: RM0.12 (up from RM0.11 in FY 2023). Revenue: RM1.20b (flat on FY 2023). Net income: RM128.2m (up 12% from FY 2023). Profit margin: 11% (up from 9.5% in FY 2023). Revenue is forecast to grow 2.6% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 28% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Board Change • Dec 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. 6 experienced directors. 1 highly experienced director. Independent & Non-Executive Director Siew Gee 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 • Nov 27
Third quarter 2024 earnings released: RM0.009 loss per share (vs RM0.009 profit in 3Q 2023) Third quarter 2024 results: RM0.009 loss per share (down from RM0.009 profit in 3Q 2023). Revenue: RM299.9m (flat on 3Q 2023). Net loss: RM9.22m (down 192% from profit in 3Q 2023). Revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 2.9% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 29
Second quarter 2024 earnings released: EPS: RM0.031 (vs RM0.025 in 2Q 2023) Second quarter 2024 results: EPS: RM0.031 (up from RM0.025 in 2Q 2023). Revenue: RM278.0m (down 4.3% from 2Q 2023). Net income: RM33.4m (up 27% from 2Q 2023). Profit margin: 12% (up from 9.1% in 2Q 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 4.2% p.a. on average during the next 3 years, while revenues in the Basic Materials industry in Asia are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has remained flat, which means it is well ahead of earnings. Price Target Changed • Aug 28
Price target increased by 12% to RM1.43 Up from RM1.27, the current price target is an average from 3 analysts. New target price is 10% above last closing price of RM1.29. Stock is up 10% over the past year. The company is forecast to post earnings per share of RM0.13 for next year compared to RM0.11 last year. Buy Or Sell Opportunity • Aug 27
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 12% to RM1.30. The fair value is estimated to be RM1.06, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 8.4%. Revenue is forecast to decline by 0.1% in 2 years. Earnings are forecast to grow by 50% in the next 2 years. Buy Or Sell Opportunity • Aug 09
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 16% to RM1.32. The fair value is estimated to be RM1.08, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Earnings per share has grown by 8.4%. Revenue is forecast to decline by 0.1% in 2 years. Earnings are forecast to grow by 50% in the next 2 years. Valuation Update With 7 Day Price Move • Aug 05
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to RM1.17, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 14x in the Basic Materials industry in Asia. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.09 per share. Valuation Update With 7 Day Price Move • Jun 13
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to RM1.40, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 14x in the Basic Materials industry in Asia. Negligible returns to shareholders over past three years. Simply Wall St's valuation model estimates the intrinsic value at RM0.80 per share. Major Estimate Revision • May 30
Consensus EPS estimates fall by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from RM1.15b to RM1.11b. EPS estimate also fell from RM0.155 per share to RM0.135 per share. Net income forecast to grow 28% next year vs 28% growth forecast for Basic Materials industry in Malaysia. Consensus price target up from RM1.19 to RM1.27. Share price fell 2.5% to RM1.16 over the past week. Duyuru • May 24
Cahya Mata Sarawak Berhad Approves First and Final Tax Exempt (Single-Tier) Dividend for the Financial Year Ended 31 December 2023 Cahya Mata Sarawak Berhad at its AGM held on May 23, 2024, approved to declare a first and final tax exempt (single-tier) dividend of 2.0 sen per ordinary share in respect of the financial year ended 31 December 2023. Buy Or Sell Opportunity • Apr 29
Now 21% overvalued after recent price rise Over the last 90 days, the stock has risen 4.8% to RM1.10. The fair value is estimated to be RM0.91, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 17% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 0.7% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Reported Earnings • Apr 28
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: RM0.11 (down from RM0.27 in FY 2022). Revenue: RM1.20b (up 19% from FY 2022). Net income: RM114.4m (down 60% from FY 2022). Profit margin: 9.5% (down from 28% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 7.7%. Earnings per share (EPS) also surpassed analyst estimates by 4.6%. Revenue is forecast to stay flat during the next 3 years compared to a 1.2% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Declared Dividend • Apr 25
Dividend of RM0.02 announced Shareholders will receive a dividend of RM0.02. Ex-date: 4th June 2024 Payment date: 28th June 2024 Dividend yield will be 1.9%, which is lower than the industry average of 2.5%. Sustainability & Growth Dividend is covered by earnings (19% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 49% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Duyuru • Apr 24
Cahya Mata Sarawak Berhad, Annual General Meeting, May 23, 2024 Cahya Mata Sarawak Berhad, Annual General Meeting, May 23, 2024, at 15:00 Singapore Standard Time. Location: Ranyai Ballroom, Level 4, The Waterfront Hotel, 68, Jalan Tun Abang Haji Openg, 93000 Kuching, Sarawak Malaysia Agenda: To receive the Audited Financial Statements for the year ended 31 December 2023 and the Reports of the Directors and Auditors thereon; to declare a first and final tax exempt (single-tier) dividend of 2.0 sen per ordinary share in respect of the financial year ended 31 December 2023; to propose Renewal of Share Buy-Back Authority; to re-appoint Messrs Ernst & Young PLT as Auditors of the Company for the financial year ending 31 December 2024 and to authorise the Board of Directors to determine their remuneration and to consider other matters. Valuation Update With 7 Day Price Move • Apr 03
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to RM1.07, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 13x in the Basic Materials industry in Asia. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.04 per share. Duyuru • Feb 27
Cahya Mata Sarawak Berhad Proposes First and Final Tax Exempt (Single-Tier) Dividend of the Financial Year Ended 31 December 2023 Cahya Mata Sarawak Berhad proposed a first and final tax exempt (single-tier) dividend of 2.00 sen per share in respect of the financial year ended 31 December 2023. The first and final dividend is subject to shareholders' approval at the forthcoming Forty-Ninth (49th) Annual General Meeting of Cahya Mata. Reported Earnings • Feb 27
Full year 2023 earnings released: EPS: RM0.11 (vs RM0.27 in FY 2022) Full year 2023 results: EPS: RM0.11 (down from RM0.27 in FY 2022). Revenue: RM1.20b (up 19% from FY 2022). Net income: RM115.1m (down 60% from FY 2022). Profit margin: 9.6% (down from 28% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to stay flat during the next 3 years compared to a 2.5% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 30% per year but the company’s share price has fallen by 24% per year, which means it is significantly lagging earnings. Reported Earnings • Nov 30
Third quarter 2023 earnings released: EPS: RM0.009 (vs RM0.14 in 3Q 2022) Third quarter 2023 results: EPS: RM0.009 (down from RM0.14 in 3Q 2022). Revenue: RM301.9m (up 8.4% from 3Q 2022). Net income: RM9.98m (down 94% from 3Q 2022). Profit margin: 3.3% (down from 55% in 3Q 2022). Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 2.8% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has fallen by 19% per year, which means it is significantly lagging earnings. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent & Non-Executive Director Siew Gee was the last director to join the board, commencing their role in 2023. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Duyuru • Sep 19
Cahya Mata Sarawak Berhad Appoints Miss Gee Siew Yoong as Independent and Non Executive Director Cahya Mata Sarawak Berhad appointed Miss Gee Siew Yoong as Independent and Non Executive Director, effective 18 Sep 2023. Her age is 73. Professional Qualification: Finance & Accounting Malaysian Institute of Certified Public Accountants. Working experience and occupation: Ms Gee Siew Yoong has more than 50 years of experience in public accounting and the corporate sector within multiple industries both as an executive and director. Major Estimate Revision • Sep 06
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from RM1.14b to RM1.12b. EPS estimate also fell from RM0.171 per share to RM0.151 per share. Net income forecast to shrink 29% next year vs 38% growth forecast for Basic Materials industry in Malaysia . Consensus price target down from RM1.42 to RM1.37. Share price fell 6.8% to RM1.09 over the past week. Reported Earnings • Aug 31
Second quarter 2023 earnings released: EPS: RM0.025 (vs RM0.037 in 2Q 2022) Second quarter 2023 results: EPS: RM0.025 (down from RM0.037 in 2Q 2022). Revenue: RM290.5m (up 39% from 2Q 2022). Net income: RM26.3m (down 33% from 2Q 2022). Profit margin: 9.1% (down from 19% in 2Q 2022). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 2.5% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 69% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Duyuru • Jun 02
Cahya Mata Sarawak Berhad Announces Cessation of Mok Chek Wei as Chief Operating Officer Cahya Mata Sarawak Berhad announced cessation of Mr. Mok Chek Wei, age 40, as Chief Operating Officer, he re-designated to Managing Director of Property Development Division. Date of change is June 1, 2023. He did is Masters in Construction Management from University of New South Wales, Australia and Bachelor of Science (Hons) in Materials Engineering in University of New South Wales, Australia. Duyuru • May 27
Cahya Mata Sarawak Berhad Approves First and Final Tax Exempt (Single-Tier) Dividend for the Financial Year Ended 31 December 2022 Cahya Mata Sarawak Berhad at its General meeting held on May 26, 2023, approved to declare a first and final tax exempt (single-tier) dividend of 3.0 sen per ordinary share in respect of the financial year ended 31 December 2022. Upcoming Dividend • May 24
Upcoming dividend of RM0.03 per share at 2.8% yield Eligible shareholders must have bought the stock before 31 May 2023. Payment date: 28 June 2023. Payout ratio is a comfortable 13% but the company is not cash flow positive. Trailing yield: 2.8%. Lower than top quartile of Malaysian dividend payers (5.3%). In line with average of industry peers (2.6%). Reported Earnings • Apr 29
Full year 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2022 results: EPS: RM0.27 (up from RM0.19 in FY 2021). Revenue: RM1.01b (up 24% from FY 2021). Net income: RM287.1m (up 41% from FY 2021). Profit margin: 28% (up from 25% in FY 2021). Revenue missed analyst estimates by 3.7%. Earnings per share (EPS) exceeded analyst estimates by 29%. Revenue is forecast to grow 6.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 71% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Reported Earnings • Feb 28
Full year 2022 earnings released: EPS: RM0.28 (vs RM0.19 in FY 2021) Full year 2022 results: EPS: RM0.28 (up from RM0.19 in FY 2021). Revenue: RM1.01b (up 24% from FY 2021). Net income: RM298.1m (up 46% from FY 2021). Profit margin: 30% (up from 25% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 72% per year but the company’s share price has fallen by 17% per year, which means it is significantly lagging earnings. Reported Earnings • Dec 03
Third quarter 2022 earnings released: EPS: RM0.14 (vs RM0.05 in 3Q 2021) Third quarter 2022 results: EPS: RM0.14 (up from RM0.05 in 3Q 2021). Revenue: RM278.4m (up 50% from 3Q 2021). Net income: RM154.4m (up 187% from 3Q 2021). Profit margin: 55% (up from 29% in 3Q 2021). The increase in margin was primarily driven by higher revenue. Revenue is forecast to grow 6.0% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Basic Materials industry in Asia. Over the last 3 years on average, earnings per share has increased by 45% per year but the company’s share price has fallen by 21% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Dec 02
Investor sentiment improved over the past week After last week's 21% share price gain to RM1.18, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 12x in the Basic Materials industry in Asia. Total loss to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at RM1.46 per share. Major Estimate Revision • Dec 01
Consensus EPS estimates increase by 15% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from RM982.0m to RM1.05b. EPS estimate increased from RM0.19 to RM0.21 per share. Net income forecast to grow 4.8% next year vs 24% growth forecast for Basic Materials industry in Malaysia. Consensus price target up from RM1.30 to RM1.46. Share price rose 11% to RM1.11 over the past week. Board Change • Nov 16
High number of new directors There are 6 new directors who have joined the board in the last 3 years. Independent Non-Executive Director Mina binti Abdul Jalil was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 27
Second quarter 2022 earnings released: EPS: RM0.037 (vs RM0.044 in 2Q 2021) Second quarter 2022 results: EPS: RM0.037 (down from RM0.044 in 2Q 2021). Revenue: RM209.7m (up 13% from 2Q 2021). Net income: RM39.6m (down 17% from 2Q 2021). Profit margin: 19% (down from 26% in 2Q 2021). Over the next year, revenue is forecast to grow 16%, compared to a 12% growth forecast for the Basic Materials industry in Malaysia. Over the last 3 years on average, earnings per share has increased by 13% per year but the company’s share price has fallen by 26% per year, which means it is significantly lagging earnings.