Latest news with #RM0.1
New Straits Times
16-07-2025
- Business
- New Straits Times
IJM approached to invest in Prolintas
KUALA LUMPUR: IJM Corp Bhd has been approached to invest in Permodalan Nasional Bhd's (PNB) toll road assets under Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), sources said. PNB had reached out to IJM to do a due diligence on the prospect, they added. Instead of an outright sale of Prolintas to investors, they said PNB might offer Prolintas' controling stake in Prolintas Infra Business Trust, which was listed on the Main Market of Bursa Malaysia on March 25 last year. PNB reportedly was considering selling Prolintas in a deal that could be worth RM3 billion. It had reached out to potential investors, including industry players and private equity firms, to gauge initial interest. In its reply to Business Times today, PNB said: "For now, we have nothing further to share beyond what we have officially shared with Bloomberg. They have captured our official statement in their article. "As a long-term investor committed to delivering sustainable returns, PNB regularly reviews its investment portfolio for opportunities to enhance value, including potential divestments or strategic repositioning. "All decisions are guided by a rigorous governance process aligned with our investment objectives. It is PNB's policy not to comment on market speculation or rumours," it added. Prolintas operates a network of six major highways in the Klang Valley. They are Ampang-Kuala Lumpur Elevated Highway (Akleh), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA), Kajang Dispersal Link Expressway (Silk), Sungai Besi-Ulu Klang Elevated Expressway (Suke) and Damansara-Shah Alam Elevated Expressway (Dash). Four of the highway assets are parked under Prolintas Infra Business Trust, which was listed on the Main Market of Bursa Malaysia on March 25 last year. The trust manages Akleh, GCE, LKSA and Silk with Prolintas holding a controlling 51.02 per cent stake. Other notable unitholders include the Employees Provident Fund with 7.78 per cent, Urusharta Jamaah Sdn Bhd with 5.78 per cent and Lembaga Tabung Haji with 5.45 per cent. IJM, meanwhile, operates a slew of toll highways namely Lebuhraya Sungai Besi (Besraya), New Pantai Expressway (NPE), Lebuhraya Kajang-Seremban (Lekas) and West Coast Expressway (WCE). The company's toll division is currently unprofitable, but its medium to long-term outlook is bright, according to some industry observers. Once impairment and forex issues ease, IJM's core local toll operations are forecast to contribute steady, recurring income, they added. The division recorded a pre-tax loss of RM0.1 million in the year ended March 31 2025. This was primarily due to a RM54 million impairment related to the WCE and share of losses from overseas associates amounting to RM66.7 million. Last month, IJM's wholly-owned New Pantai Expressway Sdn Bhd received approval from the Works Ministry to proceed with the RM1.4 billion construction of the NPE Extension. NPE will undertake a 15-kilometre elevated highway extension, including the construction of one new toll plaza.
Yahoo
20-02-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of Ray Go Solar Holdings Berhad (KLSE:RGS)
Using the Dividend Discount Model, Ray Go Solar Holdings Berhad fair value estimate is RM0.15 With RM0.15 share price, Ray Go Solar Holdings Berhad appears to be trading close to its estimated fair value Industry average of 1,799% suggests Ray Go Solar Holdings Berhad's peers are currently trading at a higher premium to fair value How far off is Ray Go Solar Holdings Berhad (KLSE:RGS) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Believe it or not, it's not too difficult to follow, as you'll see from our example! We generally believe that a company's value is the present value of all of the cash it will generate in the future. However, a DCF is just one valuation metric among many, and it is not without flaws. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. View our latest analysis for Ray Go Solar Holdings Berhad As Ray Go Solar Holdings Berhad operates in the electrical sector, we need to calculate the intrinsic value slightly differently. In this approach dividends per share (DPS) are used, as free cash flow is difficult to estimate and often not reported by analysts. Unless a company pays out the majority of its FCF as a dividend, this method will typically underestimate the value of the stock. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. The dividend is expected to grow at an annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We then discount this figure to today's value at a cost of equity of 11%. Compared to the current share price of RM0.1, the company appears around fair value at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = RM0.02 / (11% – 3.6%) = RM0.1 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. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. 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 Ray Go Solar Holdings 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 11%, which is based on a levered beta of 1.293. 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. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. 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 instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Ray Go Solar Holdings Berhad, we've put together three important items you should assess: Risks: You should be aware of the 3 warning signs for Ray Go Solar Holdings Berhad we've uncovered before considering an investment in the company. 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! Other Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook! 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.
