Weekly Forecast For Bursa Malaysia Stocks 0208/0608

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1. EUROSPAN HOLDINGS BERHAD (7094)

Industry : Home Furnishings

52W High: RM 1.29

Eurospan Holdings Berhad, an investment holding company, manufactures and trades in furniture and wood-based products in Malaysia. It offers ready-to-assemble and assembled furniture products, such as dining tables, dining chairs, cabinets, dining sets, and benches. The company also exports its products to Europe, the United Kingdom, Russia, the United States, Canada, Central America, South America, Australia, New Zealand, Africa, Korea, Japan, Hong Kong, Taiwan, Singapore, and the Middle EastEurospan Holdings Berhad was founded in 1972 and is based in Butterworth, Malaysia.

  • Trading at 23.3% below estimate of its fair value.
  • Became profitable this year.
  • Volatility Over TimeEUROSP’s weekly volatility (12%) has been stable over the past year, but is still higher than 75% of MY stocks.
  • Return vs IndustryEUROSP exceeded the MY Consumer Durables industry which returned 28.9% over the past year.
  • Return vs MarketEUROSP exceeded the MY Market which returned -1.5% over the past year.
  • Below Fair ValueEUROSP (MYR1.19) is trading below estimate of fair value (MYR1.55).
  • Significantly Below Fair ValueEUROSP is trading below fair value by more than 20%.
  • Quality EarningsEUROSP has high quality earnings.
  • Growing Profit MarginEUROSP became profitable in the past.
  • Earnings TrendEUROSP has become profitable over the past 5 years, growing earnings by -36.1% per year.
  • Short Term LiabilitiesEUROSP’s short term assets (MYR37.7M) exceed its short term liabilities (MYR10.1M).
  • Long Term LiabilitiesEUROSP’s short term assets (MYR37.7M) exceed its long term liabilities (MYR3.3M).
  • Debt LevelEUROSP’s debt to equity ratio (2.4%) is considered satisfactory.
  • Reducing DebtEUROSP’s debt to equity ratio has reduced from 5.8% to 2.4% over the past 5 years.
  • Debt CoverageEUROSP’s debt is well covered by operating cash flow (400.4%).
  • Interest CoverageEUROSP’s interest payments on its debt are well covered by EBIT (9.7x coverage).

Average volume : 178.27k
Shares outstanding : 44.42m
Free float : : 8.12m
P/E (TTM) : 116.67
Market cap : 52.86m
EPS (TTM) : 0.0102

2. TOYO VENTURES HOLDINGS BERHAD (7173)

Industry : Printing Inks

52W High: RM 4.31

Toyo Ventures Holdings Berhad, an investment holding company, engages in the manufacture and sale of printing inks in Malaysia. It manufactures color pigment, colorants for plastic, EDM cut wire and graphic art, and CNC machining of graphite and copper EDM electrodes, files, chemicals, and equipment for lithography and allied industries. The company also supplies, distributes, and deals in printing ink, color pigment, colorants for plastic and other printing materials, electrical discharge machining tools, graphite materials, and 3D profile metal components, as well as invests in properties. In addition, it manufactures and trades agriculture products, as well as deals in various engineering and aviation equipment, accessories, and attachments. Further, it focuses on investing in thermo-electric power plant project located in Vietnam. Toyo Ventures Holdings Berhad was incorporated in 2020 is based in Seri Kembangan, Malaysia.

  • Stable Share PriceTOYOVEN is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 8% a week.
  • Volatility Over TimeTOYOVEN’s weekly volatility has decreased from 15% to 8% over the past year.
  • Return vs IndustryTOYOVEN exceeded the MY Chemicals industry which returned 26.9% over the past year.
  • Return vs MarketTOYOVEN exceeded the MY Market which returned -1.5% over the past year.
  • Earnings TrendTOYOVEN’s earnings have grown significantly by 36.7% per year over the past 5 years.
  • Short Term LiabilitiesTOYOVEN’s short term assets (MYR481.8M) exceed its short term liabilities (MYR25.3M).
  • Long Term LiabilitiesTOYOVEN’s short term assets (MYR481.8M) exceed its long term liabilities (MYR354.2M).
  • Debt LevelTOYOVEN’s debt to equity ratio (6%) is considered satisfactory.
  • Reducing DebtTOYOVEN’s debt to equity ratio has reduced from 21.3% to 6% over the past 5 years.

Average volume : 24.14k
Shares outstanding : 117.70m
Free float : 26.52m
P/E (TTM) : 149.10
Market cap : 253.06m
EPS (TTM) : 0.0144

3. FIMA CORPORATION BERHAD (3107)

Industry : Security and Confidential Documents

52W High: RM 2.11

Fima Corporation Berhad, an investment holding company, engages in the production and trading of security and confidential documents in Malaysia and Indonesia. The company operates through three segments: Production and Trading, Plantation, and Investment Holding and Property Management. It also manages and rents commercial properties; cultivates, produces, and processes oil palms; and offers property management and engineering consultation services. As of 31 March, 2020, it owned and operated 10 estates covering an area of 24,745 hectares. The company was incorporated in 1974 and is based in Kuala Lumpur, Malaysia. Fima Corporation Berhad is a subsidiary of Fima Metal Box Holdings Sdn. Bhd.

  • Trading at 94.1% below estimate of its fair value.
  • Earnings grew by 131.2% over the past year.
  • Stable Share PriceFIMACOR is less volatile than 75% of MY stocks over the past 3 months, typically moving +/- 3% a week.
  • Volatility Over TimeFIMACOR’s weekly volatility (3%) has been stable over the past year.
  • Return vs MarketFIMACOR exceeded the MY Market which returned -1.5% over the past year.
  • Below Fair ValueFIMACOR (MYR2.02) is trading below estimate of fair value (MYR34.35).
  • Significantly Below Fair ValueFIMACOR is trading below fair value by more than 20%.
  • PE vs IndustryFIMACOR is good value based on its PE Ratio (17.8x) compared to the MY Commercial Services industry average (30.2x).
  • PB vs IndustryFIMACOR is good value based on its PB Ratio (0.9x) compared to the MY Commercial Services industry average (1.1x).
  • Quality EarningsFIMACOR has high quality earnings.
  • Growing Profit MarginFIMACOR’s current net profit margins (12.8%) are higher than last year (4.8%).
  • Accelerating GrowthFIMACOR’s earnings growth over the past year (131.2%) exceeds its 5-year average (-18.3% per year).
  • Earnings vs IndustryFIMACOR earnings growth over the past year (131.2%) exceeded the Commercial Services industry 23.7%.
  • Short Term LiabilitiesFIMACOR’s short term assets (MYR350.3M) exceed its short term liabilities (MYR43.9M).
  • Long Term LiabilitiesFIMACOR’s short term assets (MYR350.3M) exceed its long term liabilities (MYR21.2M).
  • Debt LevelFIMACOR is debt free.
  • Reducing DebtFIMACOR has not had any debt for past 5 years.
  • Debt CoverageFIMACOR has no debt, therefore it does not need to be covered by operating cash flow.
  • Interest CoverageFIMACOR has no debt, therefore coverage of interest payments is not a concern.
  • Notable DividendFIMACOR’s dividend (6.19%) is higher than the bottom 25% of dividend payers in the MY market (1.51%).
  • High DividendFIMACOR’s dividend (6.19%) is in the top 25% of dividend payers in the MY market (4.17%).
  • Growing DividendFIMACOR’s dividend payments have increased over the past 10 years.

Average volume : 19.60k
Shares outstanding : 245.26m
Free float : 67.85m
P/E (TTM) : 17.78
Market cap : 495.43m
EPS (TTM) : 0.1136

4. FITTERS DIVERSIFIED BERHAD (9318)

Industry : Fire-Fighting Equipment

52W High: RM 0.44

FITTERS Diversified Berhad, an investment holding company, manufactures and trades in fire-fighting equipment and industrial products in Malaysia and Singapore. It operates through five segments: Fire Services Division; Property Development and Construction; Renewable and Waste-To-Energy and Green Palm Oil Mill; Hypro PVC-O Pipes Manufacturing and Distribution; and Investment Holding. The company offers fire protection and prevention solutions, including sprinklers, wet system valves, CO2 systems, smoke and heat detectors, wet chemical systems/kitchen hoods, fire resistant door-sets, fire extinguishers, fire safety apparels, and foam systems; and general building materials. It also engages in the fire protection, gas supply, electrical power, air conditioning and ventilation, and water supply activities. In addition, the company is involved in the installation, operation, and maintenance of computerized fire alarm monitoring and communication systems; provision of polyvinyl chloride pipes; trading of fire safety materials and equipment; and holding, development, and sale of properties, as well as corrective and preventive maintenance within the fire industry and specialty construction industry. Further, it undertakes contracts for mechanical and electrical engineering works; produces renewable energy from waste; and operates palm oil mill for the treatment, cure, and extraction of palm oil, as well as constructs civil works, and residential and commercial buildings. FITTERS Diversified Berhad is headquartered in Kuala Lumpur, Malaysia.

  • Volatility Over TimeFITTERS’s weekly volatility (13%) has been stable over the past year, but is still higher than 75% of MY stocks.
  • Return vs IndustryFITTERS exceeded the MY Machinery industry which returned 32.1% over the past year.
  • Return vs MarketFITTERS exceeded the MY Market which returned -1.5% over the past year.
  • PB vs IndustryFITTERS is good value based on its PB Ratio (0.5x) compared to the MY Machinery industry average (1.3x).
  • Short Term LiabilitiesFITTERS’s short term assets (MYR233.9M) exceed its short term liabilities (MYR129.2M).
  • Long Term LiabilitiesFITTERS’s short term assets (MYR233.9M) exceed its long term liabilities (MYR18.7M).
  • Debt LevelFITTERS’s debt to equity ratio (23.9%) is considered satisfactory.
  • Reducing DebtFITTERS’s debt to equity ratio has reduced from 48.5% to 23.9% over the past 5 years.

Average volume : 23.89m
Shares outstanding : 480.50m
Free float : 206.84m
P/E (TTM) : —
Market cap : 165.77m
EPS (TTM) : -0.0208

5. SARAWAK CABLE BERHAD (5170)

Industry : Cable and Wire

52W High: RM 0.625

Sarawak Cable Berhad, an investment holding company, manufactures and sells power cables, wires, and conductors in Malaysia and internationally. It offers low voltage (LV), medium voltage (MV), and high voltage (HV) power cables; fire resistant/flame retardant cables; LV and MV aerial twisted/bundled cables; oil and gas specialized cables; instrumentation and control cables; housing wires; telecommunication cables; optical ground wires; HV bare conductors; and underground cables. The company also provides steel towers, low and high-tension steel poles, telecommunication towers and poles, building steel structures, galvanized products, street lighting columns, and guardrails; and hot-dip galvanizing services, as well as tower testing facilities. In addition, it is involved in the design, supply, delivery, erection, and commissioning of transmission lines; provision of civil works for substation and power plant projects; and general infrastructure and construction works. Further, the company operates an 11MW mini-hydro power plant located in North Sumatera, Indonesia; and offers management and consulting services. Additionally, it provides surveillance, inspection, and maintenance services for power lines through helicopters; emergency medical services; and Ad hoc aviation services. The company was incorporated in 1998 and is based in Kuching, Malaysia.

  • Trading at 97.7% below estimate of its fair value.
  • Stable Share PriceSCABLE is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 8% a week.
  • Volatility Over TimeSCABLE’s weekly volatility has decreased from 13% to 8% over the past year.
  • Return vs IndustrySCABLE exceeded the MY Electrical industry which returned 1.5% over the past year.
  • Return vs MarketSCABLE exceeded the MY Market which returned -1.5% over the past year.
  • Below Fair ValueSCABLE (MYR0.39) is trading below estimate of fair value (MYR16.76).
  • Significantly Below Fair ValueSCABLE is trading below fair value by more than 20%.
  • PB vs IndustrySCABLE is good value based on its PB Ratio (0.9x) compared to the MY Electrical industry average (1.1x).
  • Long Term LiabilitiesSCABLE’s short term assets (MYR318.6M) exceed its long term liabilities (MYR90.7M).
  • Stable Cash RunwayWhilst unprofitable SCABLE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
  • Forecast Cash RunwaySCABLE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 39.7% per year.

Average volume : 3.15m
Shares outstanding : 398.99m
Free float : 173.35m
P/E (TTM) : —
Market cap : 155.60m
EPS (TTM) : -0.0892

6. MELEWAR INDUSTRIAL GROUP BERHAD (3778)

Industry : Steel Pipes and Tubes

52W High: RM 0.78

Melewar Industrial Group Berhad, an investment holding company, engages in manufacturing, distributing, and trading steel and iron products in Malaysia. It operates through Steel Tube, Cold Rolled, and Engineering segments. The company offers black and carbon steel pipes, and square and rectangular hollow sections for bicycle, vehicles, agricultural implements, civil engineering, steel towers, furniture, mining industries, etc.; and gas and water pipes for carrying gas, water, steam, oil, air, etc. It also provides galvanized steel conduits for electrical wiring; light gauge steel plain and lipped channels for civil engineering, transportation and electrical communication equipment, machinery, etc.; and hot rolled steel plates and sheets, and cold rolled steel sheets for furniture constructions, engineering, electrical appliances, etc. In addition, the company offers welded steel pipes; carbon steel pipes for ordinary piping and machine structural purposes; square and rectangular hollow sections; and mild steel plain channels, as well as hot-dip galvanizing services. Further, it is involved in the zinc coating; construction and supply of quick assembly homes; trading of steel products and scrap; provision of engineering and technical consultancy services; and property investment activities. The company was founded in 1969 and is headquartered in Kuala Lumpur, Malaysia.

  • Trading at 98.4% below estimate of its fair value.
  • Volatility Over TimeMELEWAR’s weekly volatility has decreased from 17% to 11% over the past year, but is still higher than 75% of MY stocks.
  • Return vs IndustryMELEWAR exceeded the MY Metals and Mining industry which returned 100.5% over the past year.
  • Return vs MarketMELEWAR exceeded the MY Market which returned -1.5% over the past year.
  • Below Fair ValueMELEWAR (MYR0.53) is trading below estimate of fair value (MYR33.24).
  • Significantly Below Fair ValueMELEWAR is trading below fair value by more than 20%.
  • PE vs IndustryMELEWAR is good value based on its PE Ratio (5.2x) compared to the MY Metals and Mining industry average (9.3x).
  • PE vs MarketMELEWAR is good value based on its PE Ratio (5.2x) compared to the MY market (17.3x).
  • PB vs IndustryMELEWAR is good value based on its PB Ratio (0.5x) compared to the MY Metals and Mining industry average (0.7x).
  • Quality EarningsMELEWAR has high quality earnings.
  • Earnings TrendMELEWAR has become profitable over the past 5 years, growing earnings by 50.6% per year.
  • Short Term LiabilitiesMELEWAR’s short term assets (MYR396.5M) exceed its short term liabilities (MYR244.1M).
  • Long Term LiabilitiesMELEWAR’s short term assets (MYR396.5M) exceed its long term liabilities (MYR86.5M).
  • Debt LevelMELEWAR’s debt to equity ratio (20.2%) is considered satisfactory.
  • Reducing DebtMELEWAR’s debt to equity ratio has reduced from 32.1% to 20.2% over the past 5 years.
  • Debt CoverageMELEWAR’s debt is well covered by operating cash flow (135.7%).
  • Interest CoverageMELEWAR’s interest payments on its debt are well covered by EBIT (17.4x coverage).
  • Notable DividendMELEWAR’s dividend (8.42%) is higher than the bottom 25% of dividend payers in the MY market (1.51%).
  • High DividendMELEWAR’s dividend (8.42%) is in the top 25% of dividend payers in the MY market (4.17%).
  • Growing DividendMELEWAR’s dividend payments have increased over the past 10 years.
  • Dividend CoverageWith its low payout ratio (22.1%), MELEWAR’s dividend payments are well covered by earnings.

Average volume : 4.10m
Shares outstanding : 359.42m
Free float : 135.85m
P/E (TTM) : 5.90
Market cap : 190.49m
EPS (TTM) : 0.0899

Analyse by Independent Analyst Zack Baharum

“Without ambition one starts nothing. Without work one finishes nothing. The prize will not be sent to you. You have to win it”

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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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