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1. ONLY WORLD GROUP HOLDINGS BERHAD (5260)

Industry : Leisure, Entertainment, Hospitality

52W High : RM 0.555

Only World Group Holdings Berhad, an investment holding company, operates and manages leisure, entertainment, hospitality, and leisure related brands found in various resorts and shopping malls in Malaysia. It operates through three segments: Food Service Operations; Amusement and Recreation Operations; and Other Services. The company operates family attractions, food service outlets, and water amusement parks, as well as a central kitchen. It also engages in the brand owner, merchandiser, amusement, recreation centres, and food and beverage service outlets operations, as well as the provision of other services and franchising of interactive games. The company operates fun brands, including The Top, Ripley’s Believe It Or Not, Wet World Water Parks, Starship Galactica, Jungle Gym, and Roller Sports World; and food brands, such as Marrybrown, Only Mee, The FOOD tree, Babajia, Munakata Ramen, Eastcourt, Richdad, 1 Meter Teh, Only Easy Store, QiQi Taiwan Snacks, JR Curry, Market Food Streetand, Tapaulah, and GPO Food Court. It also operates good living brands comprising Healing Touch, Beauty First Salon, and Wellcare Clinic. The company operates through approximately 40 food service outlets located in Genting Highlands, Komtar Tower at Penang, and Klang Valley. The company was founded in 1984 and is headquartered in Shah Alam, Malaysia. Only World Group Holdings Berhad is a subsidiary of Rich Dad Cafe Sdn. Bhd.

  • Trading at 27.4% below estimate of its fair value.
  • Earnings are forecast to grow 107.45% per year.
  • Stable Share PriceOWG is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 8% a week.
  • Volatility Over TimeOWG’s weekly volatility (8%) has been stable over the past year.
  • Return vs IndustryOWG exceeded the MY Hospitality industry which returned 8.9% over the past year.
  • Return vs MarketOWG exceeded the MY Market which returned -0.3% over the past year.
  • Below Fair ValueOWG (MYR0.46) is trading below estimate of fair value (MYR0.63).
  • Significantly Below Fair ValueOWG is trading below fair value by more than 20%.
  • PB vs IndustryOWG is good value based on its PB Ratio (0.7x) compared to the MY Hospitality industry average (1.1x).
  • Earnings vs Savings RateOWG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.6%).
  • Earnings vs MarketOWG is forecast to become profitable over the next 3 years, which is considered above average market growth.
  • High Growth EarningsOWG’s is expected to become profitable in the next 3 years.
  • Revenue vs MarketOWG’s revenue (67.8% per year) is forecast to grow faster than the MY market (6.1% per year).
  • High Growth RevenueOWG’s revenue (67.8% per year) is forecast to grow faster than 20% per year.
  • Debt LevelOWG’s debt to equity ratio (38.8%) is considered satisfactory.
  • Stable Cash RunwayOWG has sufficient cash runway for more than a year based on its current free cash flow.

Average volume : 1.39m
Shares outstanding : 399.14m
Free float : 149.78m
P/E (TTM) : —
Market cap : 169.63m
EPS (TTM) : -0.1871

2. DAGANG NEXCHANGE BERHAD (4456)

Industry : Information Communication Technology and Energy

52W High : RM 1.05

Dagang NeXchange Berhad, an investment holding company, engages in information technology (IT) and eServices, and energy businesses in Malaysia. The company is involved in the development, management, and provision of business to government (B2G) e-commerce and computerized transaction in trade facilitation services; research and development, designing, manufacturing, and trading of radio-frequency technology; and provision of services for infrastructure works for telecommunication industry. It also engages in the business of online marketing and e-market place; trading of various types of drinking water and beverages; provision of technical consultancy, implementation, training, maintenance, and technical support service to eBusiness; and operation of business to business eCommerce portal. In addition, the company offers consultancy and advisory in computer hardware, software, peripherals, and other IT based products; advisory and consultancy services in relation to strategy, business improvement, computers, telecommunication, and information technology; IT project management, maintenance and asset management, IT solutions, cyber security, and managed services. Further, it supplies hardware equipment, software, and peripherals; explores for and produces oil and gas; designs, develops, constructs, operates, and maintains power plants; provides oilfield services, as well as engineering and technical support services for the oil and gas industry; and sells oil and gas related equipment. The company was formerly known as TIME Engineering Berhad and changed its name to Dagang NeXchange Berhad in May 2014. Dagang NeXchange Berhad was founded in 1970 and is headquartered in Cyberjaya, Malaysia.

  • Stable Share PriceDNEX is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 9% a week.
  • Volatility Over TimeDNEX’s weekly volatility has decreased from 14% to 9% over the past year.
  • Return vs IndustryDNEX exceeded the MY IT industry which returned 21.6% over the past year.
  • Return vs MarketDNEX exceeded the MY Market which returned -1.6% over the past year.
  • Short Term LiabilitiesDNEX’s short term assets (MYR226.0M) exceed its short term liabilities (MYR178.9M).
  • Long Term LiabilitiesDNEX’s short term assets (MYR226.0M) exceed its long term liabilities (MYR18.4M).
  • Debt Level: DNEX’s debt to equity ratio (25.7%) is considered satisfactory.
  • Debt CoverageDNEX’s debt is well covered by operating cash flow (29.4%).

Average volume : 93.26m
Shares outstanding : 3.06bn
Free float : 2.15bn
P/E (TTM) : —
Market cap : 2.53bn MYR
EPS (TTM) : -0.0026

3. ENRA GROUP BERHAD (8613)

Industry : Properties 

52W High : RM 0.965

ENRA Group Berhad, an investment holding company, develops, sells, and invests in properties in Malaysia, Australia, Myanmar, and the United Kingdom. The company operates through three segments: Property development; Energy Services; and Investment Holdings and Others. It provides engineering and fabrication services; procurement and construction of civil works, steel structure, mechanical, and piping works; electrical and instrumental installation services; leasing and related services; and trades in gas and chemicals, as well as management services. The company also offers upstream and midstream infrastructure technology solutions to the oil and gas industries; project management for engineering; and procurement, construction, and commissioning and decommissioning for multi-discipline in oil and gas industries. In addition, it supplies and installs energy saving lighting products; and supplies liquid odorant and dosing systems, as well as provides servicing for gas delivery and storage systems. The company was formerly known as Perduren (M) Berhad and changed its name to ENRA Group Berhad in May 2015. ENRA Group Berhad was incorporated in 1992 and is based in Kuala Lumpur, Malaysia.

  • Trading at 87.6% below estimate of its fair value.
  • Stable Share PriceENRA is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 8% a week.
  • Volatility Over TimeENRA’s weekly volatility (8%) has been stable over the past year.
  • Return vs IndustryENRA matched the MY Real Estate industry which returned 13.4% over the past year.
  • Return vs MarketENRA exceeded the MY Market which returned -1.6% over the past year.
  • Below Fair ValueENRA (MYR0.84) is trading below estimate of fair value (MYR6.75).
  • Significantly Below Fair ValueENRA is trading below fair value by more than 20%.
  • Short Term LiabilitiesENRA’s short term assets (MYR119.2M) exceed its short term liabilities (MYR90.9M).
  • Long Term LiabilitiesENRA’s short term assets (MYR119.2M) exceed its long term liabilities (MYR31.0M).
  • Stable Cash RunwayWhilst unprofitable ENRA has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
  • Forecast Cash RunwayENRA is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 4.2% per year.

Average volume : 1.01m
Shares outstanding : 136.21m
Free float : 34.89m
P/E (TTM) : —
Market cap : 114.41m
EPS (TTM) : -0.0472

4. KELINGTON GROUP BERHAD (0151)

Industry :  Industrial Machinery

52W High : RM 1.35

Kelington Group Berhad, together with its subsidiaries, engages in the engineering, construction, and general trading businesses in Malaysia, Singapore, Taiwan, China, the Philippines, Indonesia, and Vietnam. The company engineers various solutions for safe handling, delivery, and distribution of ultra-high purity gases and chemicals; engineers and constructs mechanical and electrical systems to support industrial processes; and offers skid fabrication services and large scale plant constructions. It also provides general contracting works encompassing civil, and mechanical and engineering services; and engages in the installation, purchase, and production of heavy steel constructions and buildings. In addition, the company supplies a range of industrial and specialty gases for electronics, semiconductor, food processing, and oil and gas industries; manufactures and distributes liquid carbon dioxide; constructs and repairs gas delivery systems; and produces, distributes, imports, and trades in gases. Further, it provides scientific and technical researches, laboratory testing, and experiment services; and fabrication services of gas, and liquid delivery equipment and mechanical parts for semiconductor industry. Additionally, the company is involved in the trade of machinery equipment, and related parts and components; skid tank renting, and industrial gases transportation and logistics arrangement business; and provision of engineering services in clean energy systems, as well as general trading and consultancy services. Kelington Group Berhad was incorporated in 1999 and is headquartered in Shah Alam, Malaysia.

  • Earnings are forecast to grow 14.68% per year.
  • Stable Share PriceKGB is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 6% a week.
  • Volatility Over TimeKGB’s weekly volatility (6%) has been stable over the past year.
  • Return vs IndustryKGB exceeded the MY Construction industry which returned -6.5% over the past year.
  • Return vs MarketKGB exceeded the MY Market which returned 1.3% over the past year.
  • Earnings vs Savings RateKGB’s forecast earnings growth (14.7% per year) is above the savings rate (3.6%).
  • Earnings vs MarketKGB’s earnings (14.7% per year) are forecast to grow faster than the MY market (11% per year).
  • Revenue vs MarketKGB’s revenue (7.5% per year) is forecast to grow faster than the MY market (6.1% per year).
  • Earnings TrendKGB has become profitable over the past 5 years, growing earnings by 30.7% per year.
  • Short Term Liabilities: KGB’s short term assets (MYR272.1M) exceed its short term liabilities (MYR136.8M).
  • Long Term LiabilitiesKGB’s short term assets (MYR272.1M) exceed its long term liabilities (MYR31.7M).
  • Debt LevelKGB’s debt to equity ratio (35.3%) is considered satisfactory.
  • Reducing DebtKGB’s debt to equity ratio has reduced from 69.4% to 35.3% over the past 5 years.
  • Interest CoverageKGB’s interest payments on its debt are well covered by EBIT (9x coverage).

Average volume : 2.91m
Shares outstanding : 645.25m
Free float : 381.80m
P/E (TTM) : 39.12
Market cap : 748.49m MYR
EPS (TTM) : 0.0297

5. VSTECS BERHAD (5162)

Industry : Information Technology Services

52W High : RM 1.53

VSTECS Berhad, an investment holding company, operates as a distribution hub for information and communications technology (ICT) products. It operates through three segments: ICT Distribution, Enterprise Systems, and ICT Services. The company distributes notebooks, personal computers, smartphones, wearables, tablets, smartwatches, printers, network and communication infrastructure, servers, and enterprise software. It also provides value-added product support and technical services; computer maintenance services; network implementation, system integration, Internet solutions, software support, hardware repair and maintenance, and warranty services; and management services, as well as engages in the letting of properties. The company serves its customers through a network of approximately 6,600 resellers comprising retailers, system integrators, and corporate dealers. VSTECS Berhad distributes its products in the Asia Pacific, including China, Thailand, Malaysia, Singapore, Indonesia, the Philippines, Cambodia, Laos, and Myanmar. The company was formerly known as ECS ICT Berhad and changed its name to VSTECS Berhad in November 2018. VSTECS Berhad was founded in 1985 and is headquartered in Petaling Jaya, Malaysia.

  • Trading at 66.5% below estimate of its fair value.
  • Earnings grew by 32.9% over the past year.
  • Stable Share PriceVSTECS is not significantly more volatile than the rest of MY stocks over the past 3 months, typically moving +/- 5% a week.
  • Volatility Over TimeVSTECS’s weekly volatility (5%) has been stable over the past year.
  • Return vs MarketVSTECS exceeded the MY Market which returned -1.6% over the past year.
  • Below Fair ValueVSTECS (MYR1.41) is trading below estimate of fair value (MYR4.2).
  • Significantly Below Fair ValueVSTECS is trading below fair value by more than 20%.
  • PE vs IndustryVSTECS is good value based on its PE Ratio (11.8x) compared to the MY Electronic industry average (30x).
  • PE vs MarketVSTECS is good value based on its PE Ratio (11.8x) compared to the MY market (16.9x).
  • PB vs IndustryVSTECS is good value based on its PB Ratio (1.5x) compared to the MY Electronic industry average (1.8x).
  • Quality EarningsVSTECS has high quality earnings.
  • Growing Profit MarginVSTECS’s current net profit margins (1.8%) are higher than last year (1.8%).
  • Earnings TrendVSTECS’s earnings have grown by 5.8% per year over the past 5 years.
  • Accelerating GrowthVSTECS’s earnings growth over the past year (32.9%) exceeds its 5-year average (5.8% per year).
  • Earnings vs IndustryVSTECS earnings growth over the past year (32.9%) exceeded the Electronic industry 24.3%.
  • Short Term LiabilitiesVSTECS’s short term assets (MYR579.2M) exceed its short term liabilities (MYR275.2M).
  • Long Term LiabilitiesVSTECS’s short term assets (MYR579.2M) exceed its long term liabilities (MYR3.3M).
  • Debt LevelVSTECS is debt free.
  • Reducing DebtVSTECS has not had any debt for past 5 years.
  • Debt CoverageVSTECS has no debt, therefore it does not need to be covered by operating cash flow.
  • Interest CoverageVSTECS has no debt, therefore coverage of interest payments is not a concern.
  • Notable DividendVSTECS’s dividend (2.48%) is higher than the bottom 25% of dividend payers in the MY market (1.5%).
  • Growing DividendVSTECS’s dividend payments have increased over the past 10 years.
  • Dividend CoverageWith its reasonably low payout ratio (29.2%), VSTECS’s dividend payments are well covered by earnings.

Average volume : 899.28k
Shares outstanding : 360.00m
Free float : 98.71m
P/E (TTM) : 11.78
Market cap : 507.60m MYR
EPS (TTM) : 0.1197

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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