Daily Forecast For Bursa Malaysia Stocks 13072021

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1. IREKA CORPORATION BERHAD (8834) 

Industries : Construction

  • Trading at 82.6% below our estimate of its fair value
  • Volatility Over TimeIREKA’s weekly volatility (12%) has been stable over the past year, but is still higher than 75% of MY stocks.
  • Return vs IndustryIREKA exceeded the MY Construction industry which returned -9.1% over the past year.
  • Return vs MarketIREKA exceeded the MY Market which returned 1.2% over the past year.
  • Below Fair ValueIREKA (MYR0.65) is trading below our estimate of fair value (MYR3.74)
  • Significantly Below Fair ValueIREKA is trading below fair value by more than 20%.
  • Long Term LiabilitiesIREKA’s short term assets (MYR347.5M) exceed its long term liabilities (MYR26.6M).
  • Stable Cash RunwayWhilst unprofitable IREKA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
  • Forecast Cash RunwayIREKA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 28.9% per year.

Average volume : 11.41m
Shares outstanding : 186.71m
Free float : 47.75m

LATEST ANNOUNCEMENT

OTHERS IREKA CORPORATION BERHAD (“IREKA” OR “COMPANY”) RECEIPT OF A NON-BINDING OFFER TO PURCHASE EQUITY INTERESTS IN CERTAIN SUBSIDIARIES AND ASSOCIATE COMPANIES OF IREKA

2. SLP RESOURCES BERHAD (7248)

Industries : Packaging

  • Trading at 4% below our estimate of its fair value
  • Earnings are forecast to grow 10.54% per year
  • Stable Share PriceSLP is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.
  • Volatility Over TimeSLP’s weekly volatility (5%) has been stable over the past year.
  • Return vs MarketSLP exceeded the MY Market which returned 1.2% over the past year.
  • Below Fair ValueSLP (MYR0.98) is trading below our estimate of fair value (MYR1.02)
  • Earnings vs Savings RateSLP’s forecast earnings growth (10.5% per year) is above the savings rate (3.6%).
  • Revenue vs MarketSLP’s revenue (8.3% per year) is forecast to grow faster than the MY market (6.1% per year).
  • Quality Earnings: SLP has high quality earnings.
  • Short Term Liabilities: SLP’s short term assets (MYR140.0M) exceed its short term liabilities (MYR21.5M).
  • Long Term Liabilities: SLP’s short term assets (MYR140.0M) exceed its long term liabilities (MYR8.6M).
  • Debt Level: SLP is debt free.
  • Reducing Debt: SLP has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.
  • Debt Coverage: SLP has no debt, therefore it does not need to be covered by operating cash flow.
  • Interest Coverage: SLP has no debt, therefore coverage of interest payments is not a concern.
  • Notable Dividend: SLP’s dividend (5.64%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).
  • High Dividend: SLP’s dividend (5.64%) is in the top 25% of dividend payers in the MY market (4.15%).
  • Growing Dividend: SLP’s dividend payments have increased over the past 10 years.

Average volume : 258.87k
Shares outstanding : 316.96m
Free float : 64.19m

3. SCANWOLF CORPORATION BERHAD (7239)

Industries :  Home Furnishings

  • Volatility Over TimeSCNWOLF’s weekly volatility (15%) has been stable over the past year, but is still higher than 75% of MY stocks.
  • Return vs IndustrySCNWOLF exceeded the MY Building industry which returned 31.3% over the past year.
  • Return vs MarketSCNWOLF exceeded the MY Market which returned 1.2% over the past year.
  • Long Term LiabilitiesSCNWOLF’s short term assets (MYR59.6M) exceed its long term liabilities (MYR9.9M).
  • Stable Cash RunwayWhilst unprofitable SCNWOLF has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
  • Forecast Cash RunwaySCNWOLF is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34% per year.

Average volume : 4.80m
Shares outstanding : 105.75m
Free float : 28.37m

LATEST NEWS

Scanwolf to increase production of vinyl tiles, eyes more overseas markets

LATEST ANNOUNCEMENT

RENOUNCEABLE RIGHTS ISSUE OF UP TO RM10,497,120 NOMINAL VALUE OF 5-YEAR 3% IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS (“ICULS”) AT 100% OF ITS NOMINAL VALUE OF RM0.10 ON THE BASIS OF 2 ICULS FOR EVERY 2 EXISTING ORDINARY SHARES IN SCANWOLF CORPORATION BERHAD HELD AS AT 5.00 P.M. ON 8 JULY 2021, TOGETHER WITH UP TO 52,485,600 FREE WARRANTS (“WARRANTS”) ON THE BASIS OF 1 WARRANT FOR EVERY 2 ICULS SUBSCRIBED (“RIGHTS ISSUE OF ICULS WITH WARRANTS”)

4. RESINTC BERHAD (7232)

Industries : Miscellaneous Manufacturing

  • Trading at 86.2% below our estimate of its fair value
  • Earnings grew by 50% over the past year
  • Stable Share PriceRESINTC is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 9% a week.
  • Volatility Over TimeRESINTC’s weekly volatility (9%) has been stable over the past year.
  • Return vs IndustryRESINTC exceeded the MY Machinery industry which returned 37.1% over the past year.
  • Return vs MarketRESINTC exceeded the MY Market which returned 1.2% over the past year.
  • Below Fair ValueRESINTC (MYR0.51) is trading below our estimate of fair value (MYR3.69)
  • Significantly Below Fair ValueRESINTC is trading below fair value by more than 20%.
  • PE vs IndustryRESINTC is good value based on its PE Ratio (11.6x) compared to the MY Machinery industry average (18x).
  • PE vs MarketRESINTC is good value based on its PE Ratio (11.6x) compared to the MY market (17.1x).
  • PB vs IndustryRESINTC is good value based on its PB Ratio (0.4x) compared to the MY Machinery industry average (1.3x).
  • Quality EarningsRESINTC has high quality earnings.
  • Growing Profit MarginRESINTC’s current net profit margins (7.6%) are higher than last year (5%).
  • Accelerating GrowthRESINTC’s earnings growth over the past year (50%) exceeds its 5-year average (-7.6% per year).
  • Earnings vs IndustryRESINTC earnings growth over the past year (50%) exceeded the Machinery industry 1.6%.
  • Short Term LiabilitiesRESINTC’s short term assets (MYR80.5M) exceed its short term liabilities (MYR35.4M).
  • Long Term LiabilitiesRESINTC’s short term assets (MYR80.5M) exceed its long term liabilities (MYR23.6M).
  • Debt LevelRESINTC’s debt to equity ratio (13.7%) is considered satisfactory.
  • Reducing DebtRESINTC’s debt to equity ratio has reduced from 16.4% to 13.7% over the past 5 years.
  • Debt CoverageRESINTC’s debt is well covered by operating cash flow (74.1%).
  • Interest CoverageRESINTC’s interest payments on its debt are well covered by EBIT (7.9x coverage).
  • Notable DividendRESINTC’s dividend (2.94%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).
  • Growing DividendRESINTC’s dividend payments have increased over the past 10 years.

Average volume : 887.89k
Shares outstanding : 137.20m
Free float : 26.72m

Analyse by Independent Analyst Zack Baharum

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Disclaimer:
Everything shared here can only be used for educational purposes. There is no buy/sell call for any counters mentioned in this portal. We hold NO responsibility and you should always consult your remisier or adviser for investment decisions.

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