Latest news with #MahSingGroup
The Star
3 days ago
- Business
- The Star
Trading ideas: Alliance, LSH, LYC, 7-Eleven, RHB, Master Tec, Mah Sing, CIMB, Capital A, SKP, Yinson, Berjaya, BAT, Bintulu, Bank Islam
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. Alliance Bank Malaysia Bhd received 99.9% shareholder approval at its EGM for the proposed RM600mn renounceable rights issue, priced at RM3.33 per rights share on a 2-for-17 basis. LSH Capital has proposed to acquire three land parcels along Persiaran Titiwangsa 3, KL, for RM17.4mn cash via its wholly owned unit, LSH Development. LYC Healthcare has been classified as a GN3 company after shareholders' equity fell below 25% of issued capital based on FY25 unaudited results. 7-Eleven Malaysia announced the resignation of its non-independent non-executive chairman Datuk Farhash Wafa Salvador, effective after the AGM. RHB Bank has appointed Nurjesmi Mohd Nashir as its new head of wholesale banking effective July 1, succeeding Datuk Fad'l Mohamed, who now leads Bursa Malaysia. Master TEC Group Bhd has proposed to transfer its listing from the ACE Market to the Main Market of Bursa Malaysia, signalling its readiness to comply with the stricter regulatory framework. Mah Sing Group is seeking new partners for a 17.55-acre data centre project in Bangi after its agreement with Bridge Data Centres lapsed. A separate 35.68-acre collaboration for a 200MW data centre with BDC remains active until Oct 28. Mah Sing Group reported a 9.98% YoY rise in 1QFY25 net profit to RM66.04mn, with revenue up 16.4% YoY to RM649.69mn, driven by progressive billings. CIMB Group posted a 1.9% YoY increase in 1QFY25 net profit to RM1.97bn, supported by higher interest income and lower provisions. Capital A swung to a 1QFY25 net profit of RM689.57mn (from RM91.55mn loss a year ago), lifted by RM882.7mn earnings from its aviation segment (classified as discontinued). SKP Resources saw 4QFY25 net profit rose 60% YoY to RM30.3mn from RM18.9mn in 4QFY24, on stronger contributions from its core business. Yinson reported FY25 net profit of RM1.25bn, up 66.1% YoY, after reassessing tax treatment for its Netherlands offshore ops. Berjaya Corp remained in the red for the fourth straight quarter with a 3QFY25 net loss of RM92.34mn, versus a RM689.92mn profit in 3QFY24. BAT Malaysia reported a weaker 1Q25 net profit of RM23.3mn, down from RM29.9mn YoY, on the back of lower revenue of RM321.9mn (-21.9% YoY). Bintulu Port posted a 36% YoY drop in 1QFY25 net profit to RM28.4mn due to lower port activity and higher admin expenses. Revenue declined 3.3% YoY to RM201.7mn. Bank Islam reported a 3% YoY decline in 1QFY25 net profit to RM126.27mn due to higher provisions and overheads. Impairment allowances surged 89% YoY to RM79.78mn.
Yahoo
5 days ago
- Business
- Yahoo
Mah Sing Group Berhad (KLSE:MAHSING) Shares Could Be 34% Above Their Intrinsic Value Estimate
The projected fair value for Mah Sing Group Berhad is RM0.76 based on 2 Stage Free Cash Flow to Equity Current share price of RM1.02 suggests Mah Sing Group Berhad is potentially 34% overvalued The RM2.09 analyst price target for MAHSING is 174% more than our estimate of fair value Does the June share price for Mah Sing Group Berhad (KLSE:MAHSING) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) -RM30.3m RM158.7m RM270.0m RM241.2m RM225.8m RM218.1m RM215.4m RM215.8m RM218.4m RM222.7m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Est @ -10.68% Est @ -6.39% Est @ -3.38% Est @ -1.27% Est @ 0.20% Est @ 1.23% Est @ 1.95% Present Value (MYR, Millions) Discounted @ 12% -RM27.1 RM127 RM193 RM154 RM129 RM112 RM98.5 RM88.3 RM79.9 RM72.9 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM1.0b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 12%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM223m× (1 + 3.6%) ÷ (12%– 3.6%) = RM2.8b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM2.8b÷ ( 1 + 12%)10= RM923m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM2.0b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of RM1.0, the company appears reasonably expensive at the time of writing. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Mah Sing Group Berhad as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 12%, which is based on a levered beta of 1.379. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. View our latest analysis for Mah Sing Group Berhad Strength Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Weakness Earnings growth over the past year underperformed the Real Estate industry. Dividend is low compared to the top 25% of dividend payers in the Real Estate market. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Good value based on P/E ratio compared to estimated Fair P/E ratio. Threat Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. Can we work out why the company is trading at a premium to intrinsic value? For Mah Sing Group Berhad, there are three further elements you should look at: Risks: As an example, we've found 1 warning sign for Mah Sing Group Berhad that you need to consider before investing here. Future Earnings: How does MAHSING's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
