Is Salcon Berhad (KLSE:SALCON) A Risky Investment?
May 29
Malaysian (KLSE) Water Utilities Industry Analysis
UpdatedJun 01, 2024
DataAggregated Company Financials
Companies5
- 7D-3.8%
- 3M9.5%
- 1Y52.1%
- YTD11.7%
Over the last 7 days, the Water Utilities industry has dropped 3.8%, driven by a pullback from Ranhill Utilities Berhad of 7.6%. On the other hand Salcon Berhad is actually up 21%. Over the past 12 months, the industry was up 52%. Earnings are forecast to grow by 18% annually.
Industry Valuation and Performance
Has the Malaysian Water Utilities Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 01 Jun 2024 | RM4.4b | RM3.6b | RM122.0m | 25.4x | 36.4x | 1.2x |
| Mon, 29 Apr 2024 | RM4.1b | RM3.6b | RM114.4m | 21.2x | 36.2x | 1.2x |
| Wed, 27 Mar 2024 | RM4.0b | RM3.6b | RM114.4m | 21.4x | 35x | 1.1x |
| Fri, 23 Feb 2024 | RM4.3b | RM3.4b | RM138.5m | 14.5x | 31.4x | 1.3x |
| Sun, 21 Jan 2024 | RM4.3b | RM3.4b | RM138.5m | 15.4x | 31.2x | 1.3x |
| Tue, 19 Dec 2023 | RM3.6b | RM3.4b | RM138.5m | 11.1x | 26.1x | 1.1x |
| Thu, 16 Nov 2023 | RM3.8b | RM3.2b | RM163.9m | 11.3x | 23.4x | 1.2x |
| Sat, 14 Oct 2023 | RM3.0b | RM3.2b | RM172.2m | 7.6x | 17.6x | 1x |
| Mon, 11 Sep 2023 | RM3.1b | RM3.2b | RM172.2m | 8.3x | 17.8x | 1x |
| Wed, 09 Aug 2023 | RM3.0b | RM3.0b | RM190.8m | 7.5x | 15.5x | 1x |
| Fri, 07 Jul 2023 | RM2.9b | RM3.0b | RM190.8m | 7.2x | 15.3x | 1x |
| Sun, 04 Jun 2023 | RM2.9b | RM3.0b | RM190.8m | 6.8x | 15.3x | 1x |
| Tue, 02 May 2023 | RM3.0b | RM2.8b | RM160.1m | 8.1x | 19x | 1.1x |
| Thu, 30 Mar 2023 | RM2.9b | RM2.8b | RM161.5m | 6.3x | 17.9x | 1x |
| Sat, 25 Feb 2023 | RM2.9b | RM2.7b | RM154.2m | 19.5x | 19x | 1.1x |
| Mon, 23 Jan 2023 | RM2.9b | RM2.7b | RM145.4m | 20.4x | 19.7x | 1.1x |
| Wed, 21 Dec 2022 | RM2.9b | RM2.7b | RM145.4m | 20.6x | 19.6x | 1.1x |
| Fri, 18 Nov 2022 | RM2.8b | RM2.7b | RM143.7m | 20.7x | 19.4x | 1x |
| Sun, 16 Oct 2022 | RM2.8b | RM2.7b | RM143.7m | 20.4x | 19.4x | 1x |
| Tue, 13 Sep 2022 | RM3.0b | RM2.7b | RM143.7m | 21.7x | 20.6x | 1.1x |
| Thu, 11 Aug 2022 | RM3.0b | RM2.8b | RM148.9m | 15.8x | 20x | 1.1x |
| Sat, 09 Jul 2022 | RM2.9b | RM2.8b | RM148.9m | 15.1x | 19.6x | 1.1x |
| Mon, 06 Jun 2022 | RM3.1b | RM2.8b | RM148.9m | 17.9x | 20.8x | 1.1x |
| Wed, 04 May 2022 | RM3.1b | RM3.0b | RM151.0m | 18.2x | 20.7x | 1.1x |
| Fri, 01 Apr 2022 | RM3.1b | RM3.0b | RM151.0m | 17.8x | 20.7x | 1.1x |
| Sun, 27 Feb 2022 | RM3.3b | RM2.9b | RM181.7m | 12.9x | 17.9x | 1.1x |
| Tue, 25 Jan 2022 | RM3.1b | RM2.9b | RM165.4m | 15.8x | 18.6x | 1x |
| Thu, 23 Dec 2021 | RM3.1b | RM2.9b | RM165.4m | 15.7x | 18.9x | 1.1x |
| Sat, 20 Nov 2021 | RM3.1b | RM3.0b | RM172.9m | 12.3x | 18.2x | 1.1x |
| Mon, 18 Oct 2021 | RM3.2b | RM2.9b | RM136.6m | 29.4x | 23.4x | 1.1x |
| Wed, 15 Sep 2021 | RM3.3b | RM3.0b | RM120.7m | 29.6x | 27.2x | 1.1x |
| Fri, 13 Aug 2021 | RM3.2b | RM3.0b | RM120.7m | 29.4x | 26.2x | 1.1x |
| Tue, 08 Jun 2021 | RM3.2b | RM2.8b | RM122.6m | 22.3x | 26x | 1.2x |
Price to Earnings Ratio
26x
Current Industry PE
- Investors are optimistic on the Malaysian Water Utilities industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 36.4x which is higher than its 3-year average PE of 22.2x.
- The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Water Utilities industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 9.7% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Malaysian Utilities industry?
| MY Market | -1.50% | |
| Utilities | -0.99% | |
| Water Utilities | -3.84% | |
| Water | -3.84% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| SALCON Salcon Berhad | RM0.35 | 20.7% +RM60.7m | 79.5% | PS2.1x |