Latest news with #Orgabio
Yahoo
03-07-2025
- Business
- Yahoo
Is The Market Rewarding Orgabio Holdings Berhad (KLSE:ORGABIO) With A Negative Sentiment As A Result Of Its Mixed Fundamentals?
It is hard to get excited after looking at Orgabio Holdings Berhad's (KLSE:ORGABIO) recent performance, when its stock has declined 10.0% over the past three months. It is possible that the markets have ignored the company's differing financials and decided to lean-in to the negative sentiment. Fundamentals usually dictate market outcomes so it makes sense to study the company's financials. In this article, we decided to focus on Orgabio Holdings Berhad's ROE. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Orgabio Holdings Berhad is: 7.4% = RM4.4m ÷ RM59m (Based on the trailing twelve months to March 2025). The 'return' is the income the business earned over the last year. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.07 in profit. See our latest analysis for Orgabio Holdings Berhad We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. When you first look at it, Orgabio Holdings Berhad's ROE doesn't look that attractive. However, its ROE is similar to the industry average of 8.5%, so we won't completely dismiss the company. But Orgabio Holdings Berhad saw a five year net income decline of 17% over the past five years. Bear in mind, the company does have a slightly low ROE. Hence, this goes some way in explaining the shrinking earnings. That being said, we compared Orgabio Holdings Berhad's performance with the industry and were concerned when we found that while the company has shrunk its earnings, the industry has grown its earnings at a rate of 13% in the same 5-year period. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. It's important for an investor to know whether the market has priced in the company's expected earnings growth (or decline). Doing so will help them establish if the stock's future looks promising or ominous. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Orgabio Holdings Berhad is trading on a high P/E or a low P/E, relative to its industry. Orgabio Holdings Berhad doesn't pay any regular dividends, meaning that the company is keeping all of its profits, which makes us wonder why it is retaining its earnings if it can't use them to grow its business. So there might be other factors at play here which could potentially be hampering growth. For example, the business has faced some headwinds. On the whole, we feel that the performance shown by Orgabio Holdings Berhad can be open to many interpretations. Even though it appears to be retaining most of its profits, given the low ROE, investors may not be benefitting from all that reinvestment after all. The low earnings growth suggests our theory correct. Wrapping up, we would proceed with caution with this company and one way of doing that would be to look at the risk profile of the business. Our risks dashboard would have the 3 risks we have identified for Orgabio Holdings Berhad. 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
The Star
22-05-2025
- Business
- The Star
Orgabio optimistic on instant beverage market growth
KUALA LUMPUR: Orgabio Holdings Bhd remains optimistic, supported by the instant beverage market's growth from US$61.64bil in 2023 to US$103.75bil by 2031, at a compound annual growth rate (CAGR) of 6.94%. 'Malaysia's premix market is also expected to grow from US$521.65mil in 2022 to US$835.85mil by 2029 (CAGR: 6.97%). Backed by this positive trajectory, the group will continue to pursue growth opportunities while managing costs prudently and strengthening its competitive positioning,' the instant beverage premix manufacturer said in a statement. In the third quarter ended March 31, Orgabio's net profit halved to RM1.09mil, or earnings per share of 0.44 sen, compared with RM2.12mil, or 0.85 sen, in the year-ago quarter. Revenue, however, climbed to RM28mil against RM22.4mil previously. For the nine months ended March 31, it posted a 9.4% increase in net profit to RM3.4mil, supported by a 44.3% rise in revenue to RM76.8mil. 'We are encouraged by the consistent growth in revenue, particularly from the domestic market. While profitability was impacted by temporary cost pressures and currency volatility, we remain focused on delivering sustainable performance and maintaining operational discipline,' chief executive officer and executive director Ean Yong Hien Voon said. 'With our newly completed factory commencing operations in April 2025, we are well-positioned to ramp up capacity progressively. This facility enhances our ability to serve a broader client base with a more diversified product portfolio and supports our entry into new markets.'
Associated Press
28-02-2025
- Business
- Associated Press
Orgabio Reports Strong Q2 FY2025 Results with 36.2% Revenue Growth to RM25.40 Million
KUALA LUMPUR, MALAYSIA / ACCESS Newswire Orgabio Holdings Berhad ('Orgabio' or the 'Company') a leading instant beverage premix manufacturer in Malaysia, announced a strong financial performance for the second quarter ended 31 December 2024 ('Q2 FY2025"), reflecting sustained business expansion and increasing market demand. The Company recorded revenue of RM25.40 million, a 36.2% year-on-year growth from RM18.66 million in Q2 FY2024, driven by higher demand for its manufacturing services from third-party brand owners. Domestically, revenue surged 75.2% to RM12.49 million, while international sales grew 11.99% to RM12.91 million, underscoring Orgabio's expanding global footprint. Profit Before Tax ('PBT') increased 7.3% to RM1.86 million, while Profit After Tax ('PAT') climbed 30.4% to RM1.27 million, supported by stronger sales volumes and operational efficiencies. On a cumulative basis, Orgabio reported total revenue of RM48.84 million for the first half of the financial year ('1H FY2025"), a significant 58.5% increase from RM30.81 million in the same period last year. PBT for 1H FY2025 increased to RM3.57 million, up 91.9% from RM1.86 million in 1H FY2024, while PAT surged 129.9% to RM2.34 million from RM1.02 million in 1H FY2024, reflecting strong growth momentum. Orgabio Holdings Berhad Yong Hien Voon, Chief Executive Officer and Executive Director of Orgabio Holdings Berhad commented: 'We are pleased with our strong Q2 FY2025 performance, which reflects the trust of our clients and our ability to scale effectively. The sustained demand for our instant beverage solutions, both domestically and internationally, continues to drive our growth. As we expand, we remain committed to supporting our clients' business plans by ensuring a reliable supply of high-quality products while maintaining vigilance over raw material cost fluctuations. Despite fluctuating production costs, we continue to optimise efficiency and profitability.' Mr. Ean Yong added: 'The global instant beverage market is poised for substantial growth, projected to expand from USD 61.64 billion in 2023 to USD 103.75 billion by 2031, at a CAGR of 6.94%. Malaysia's instant beverage premix market is also expected to grow from USD 521.65 million in 2022 to USD 835.85 million by 2029, with a CAGR of 6.97%, driven by increasing demand for convenience, longer shelf life, and consistent taste. With our newly completed factory capable of producing up to 230 million sachets annually, Orgabio is well-positioned to capitalise on these opportunities, diversify its product portfolio, and expand into new markets.' Orgabio remains committed to strengthening its presence in both domestic and international markets by fulfilling secured orders and actively pursuing new business opportunities. With enhanced production capacity and a focus on product innovation, the Company is set to drive sustainable growth and long-term value creation. ABOUT ORGABIO HOLDINGS BERHAD Orgabio Holdings Berhad ('Orgabio' or the 'Company') was founded in 2002 by Dato' Ean Yong Tin Sin as a private label ('OEM' or 'ODM') manufacturer specialising in coffee and food supplement premixes. Over the years, Orgabio has expanded into one of Malaysia's leading instant beverage premix OEM manufacturers, producing over 100 million sachets annually. With 85 employees, the Company remains committed to its 'customer first' principle, delivering high-quality, customised beverage solutions while continuously innovating to support its clients' growth in both domestic and international markets. Issued By: Swan Consultancy Sdn. Bhd. on behalf of Orgabio Holdings Berhad William Yeo
