Forecast of HIL Industries Berhad (8443) For 2nd Week Of July 2021

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HIL Industries Berhad (8443)

Industry :  Industrial Machinery

  • Trading at 82.2% below our estimate of its fair value
  • Earnings have grown 12.3% per year over the past 5 years
  • Stable Share PriceHIL is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 4% a week.
  • Volatility Over TimeHIL’s weekly volatility (4%) has been stable over the past year.
  • Return vs IndustryHIL exceeded the MY Chemicals industry which returned 27.4% over the past year.
  • Return vs MarketHIL exceeded the MY Market which returned 1.2% over the past year.
  • Below Fair ValueHIL (MYR0.93) is trading below our estimate of fair value (MYR5.23)
  • Significantly Below Fair ValueHIL is trading below fair value by more than 20%.
  • PE vs IndustryHIL is good value based on its PE Ratio (11.6x) compared to the MY Chemicals industry average (16x).
  • PE vs MarketHIL is good value based on its PE Ratio (11.6x) compared to the MY market (17.1x).
  • PB vs IndustryHIL is good value based on its PB Ratio (0.8x) compared to the MY Chemicals industry average (1.4x).
  • Quality EarningsHIL has high quality earnings.
  • Growing Profit MarginHIL’s current net profit margins (16.1%) are higher than last year (15.9%).
  • Earnings TrendHIL’s earnings have grown by 12.3% per year over the past 5 years.
  • Short Term LiabilitiesHIL’s short term assets (MYR401.4M) exceed its short term liabilities (MYR75.0M).
  • Long Term LiabilitiesHIL’s short term assets (MYR401.4M) exceed its long term liabilities (MYR27.6M).
  • Debt LevelHIL is debt free.
  • Reducing DebtHIL had no debt 5 years ago.
  • Debt CoverageHIL has no debt, therefore it does not need to be covered by operating cash flow.
  • Interest CoverageHIL has no debt, therefore coverage of interest payments is not a concern.
  • Notable DividendHIL’s dividend (1.61%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).
  • Dividend CoverageWith its low payout ratio (18.7%), HIL’s dividend payments are well covered by earnings.

Average volume : 52.38k
Shares outstanding : 334.04m
Free float : 42.01m
P/E (TTM) : 11.40
Market cap : 305.64m
EPS (TTM) : 0.0803

LATEST NEWS

Engineering plastic product ops boost HIL performance

HIL Industries 1Q profit surges 50% on strong demand for automotive parts

LATEST ANNOUNCEMENT

A first and final single-tier dividend of 1.50 sen per ordinary share in respect of the financial year ended 31 December 2020

Published & Analyse by Zack Baharum

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