Latest news with #RM0.28
The Sun
16-05-2025
- Business
- The Sun
Strong investor demand sees Oasis Home Holding's ACE Market IPO oversubscribed 1.55 times
KUALA LUMPUR: Omnichannel consumer lifestyle products marketer and seller Oasis Home Holding Bhd has generated positive investor interest for its initial public offering (IPO), which has been oversubscribed by 1.55 times ahead of its listing on the ACE Market of Bursa Malaysia. CEO Datuk Teoh Yee Seang said the positive response to the IPO reflects the market's confidence in the company's business model and growth strategy. He said the oversubscription indicates a strong interest in its omnichannel approach and commitment to delivering value to customers and shareholders. 'We look forward to the next steps as we proceed with our listing on the ACE Market of Bursa Malaysia and continue to execute on our long-term strategy. 'With the retail and live commerce industries poised for continued growth, this is the ideal time for Oasis Home to capitalise on these market conditions,' he said in a statement. Oasis Home is primarily engaged in the marketing and selling of consumer lifestyle products under both its in-house and third-party brands. By adopting an omnichannel marketing approach, the group utilises both online and offline sales channels to ensure a seamless and accessible retail journey for customers, strengthening the group's position across a wide spectrum of consumer touchpoints. Oasis Home offers a wide range of products, with approximately 5,228 stock keeping units (SKUs), of which approximately 2,233 SKUs are under its own in-house brands and approximately 2,995 SKUs are under third-party brands as of March 26, 2025. The group's IPO consists of 150 million ordinary shares, including a public issue of 100 million new shares priced at RM0.28 each. This makes up 20% of the enlarged share capital and is expected to raise around RM28 million. Additionally, 50 million existing shares—representing 10% of the enlarged shares—will be offered through a private placement to selected investors. Out of the 100 million new shares offered, 25 million were allocated to the Malaysian public. Oasis Home received 2,216 applications for a total of 38.67 million shares, valued at approximately RM10.83 million. This reflects an oversubscription rate of 1.55 times. The 10 million shares set aside for eligible directors and employees have been fully subscribed. Under the private placement, 2.5 million new shares and 50 million offer shares set aside for selected investors have been fully taken up. Meanwhile, the 62.5 million shares reserved for Bumiputera investors approved by the Ministry of Investment, Trade and Industry (Miti) have also been fully placed out, following the clawback and reallocation provisions outlined in Section 4.3.4 of Oasis Home's prospectus dated April 25, 2025. All successful applicants will receive a notice of allotment by May 23, 2025. 'To position ourselves to leverage this favourable outlook, a significant portion of our IPO proceeds will be dedicated to expanding our operations, particularly scaling up our live commerce channels and enhancing our operational infrastructure. 'We plan to allocate RM13.7 million (48.93% of proceeds raised) to expand our live commerce sales channels, including launching at least 5 new live commerce channels and expanding our team. 'Additionally, RM3.6 million (12.86% of proceeds raised) will be utilised in establishing our own fulfilment centre, while RM2.0 million (7.14% of proceeds raised) will be set aside for setting up our new headquarter,' Teoh said. According to the independent market research by Providence Strategic Partners Sdn Bhd, Southeast Asia's live commerce market is projected to grow at a 2-year compounded annual growth rate (CAGR) of 42.5% to US$76.6 billion in 2027, from US$37.7 billion in 2025, driven by improved broadband penetration, widespread mobile device adoption, increased accessibility to digital payment methods, wider acceptance of digital payment methods, and more efficient logistics infrastructure. Oasis Home is scheduled to be listed on the ACE Market of Bursa Malaysia on Wednesday, May 28, 2025. Upon listing, the group will have a market capitalisation of approximately RM140.0 million based on the issue price of RM0.28 per share and the enlarged issued shares of 500.0 million Shares. MIDF Amanah Investment Bank Bhd is the principal adviser, sponsor, underwriter, and placement agent for the IPO. -end-
Yahoo
17-04-2025
- Business
- Yahoo
Calculating The Intrinsic Value Of IRIS Corporation Berhad (KLSE:IRIS)
IRIS Corporation Berhad's estimated fair value is RM0.28 based on 2 Stage Free Cash Flow to Equity IRIS Corporation Berhad's RM0.29 share price indicates it is trading at similar levels as its fair value estimate IRIS Corporation Berhad's peers seem to be trading at a higher premium to fair value based onthe industry average of -468% Does the April share price for IRIS Corporation Berhad (KLSE:IRIS) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. 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 want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in 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 start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last 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. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM23.3m RM20.6m RM19.2m RM18.4m RM18.1m RM18.1m RM18.3m RM18.6m RM19.1m RM19.6m Growth Rate Estimate Source Est @ -18.23% Est @ -11.68% Est @ -7.10% Est @ -3.89% Est @ -1.64% Est @ -0.07% Est @ 1.03% Est @ 1.80% Est @ 2.34% Est @ 2.72% Present Value (MYR, Millions) Discounted @ 10% RM21.1 RM16.9 RM14.2 RM12.4 RM11.0 RM10.0 RM9.1 RM8.4 RM7.8 RM7.3 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM118m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.6%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM20m× (1 + 3.6%) ÷ (10%– 3.6%) = RM296m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM296m÷ ( 1 + 10%)10= RM110m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM228m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of RM0.3, the company appears around fair value 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. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the 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 IRIS Corporation 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 10%, which is based on a levered beta of 1.153. 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. Check out our latest analysis for IRIS Corporation Berhad Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For IRIS Corporation Berhad, there are three further items you should explore: Risks: To that end, you should be aware of the 2 warning signs we've spotted with IRIS Corporation Berhad . 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 Environmentally-Friendly Companies: Concerned about the environment and think consumers will buy eco-friendly products more and more? Browse through our interactive list of companies that are thinking about a greener future to discover some stocks you may not have thought of! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the KLSE every day. If you want to find the calculation for other stocks 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. Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
A Look At The Fair Value Of Daythree Digital Berhad (KLSE:DAY3)
Daythree Digital Berhad's estimated fair value is RM0.24 based on Dividend Discount Model Current share price of RM0.28 suggests Daythree Digital Berhad is potentially trading close to its fair value Industry average of 367% suggests Daythree Digital Berhad's peers are currently trading at a higher premium to fair value How far off is Daythree Digital Berhad (KLSE:DAY3) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected 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 would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. See our latest analysis for Daythree Digital Berhad As Daythree Digital Berhad operates in the commercial services 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. This often underestimates the value of a stock, but it can still be good as a comparison to competitors. We use the Gordon Growth Model, which assumes dividend will grow into perpetuity at a rate that can be sustained. For a number of reasons a very conservative growth rate is used that cannot exceed that of a company's Gross Domestic Product (GDP). In this case we used the 5-year average of the 10-year government bond yield (3.6%). The expected dividend per share is then discounted to today's value at a cost of equity of 9.6%. Relative to the current share price of RM0.3, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Value Per Share = Expected Dividend Per Share / (Discount Rate - Perpetual Growth Rate) = RM0.01 / (9.6% – 3.6%) = RM0.2 Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the 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 Daythree Digital 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 9.6%, which is based on a levered beta of 1.008. 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. Strength Currently debt free. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Commercial Services market. Current share price is above our estimate of fair value. Opportunity DAY3's financial characteristics indicate limited near-term opportunities for shareholders. Lack of analyst coverage makes it difficult to determine DAY3's earnings prospects. Threat Paying a dividend but company has no free cash flows. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Daythree Digital Berhad, we've put together three fundamental aspects you should consider: Risks: Every company has them, and we've spotted 3 warning signs for Daythree Digital Berhad you should know about. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! 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.
Yahoo
03-03-2025
- Business
- Yahoo
Batu Kawan Berhad First Quarter 2025 Earnings: EPS: RM0.33 (vs RM0.28 in 1Q 2024)
Revenue: RM6.12b (up 5.0% from 1Q 2024). Net income: RM127.6m (up 14% from 1Q 2024). Profit margin: 2.1% (up from 1.9% in 1Q 2024). The increase in margin was driven by higher revenue. EPS: RM0.33 (up from RM0.28 in 1Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Batu Kawan Berhad's share price is broadly unchanged from a week ago. What about risks? Every company has them, and we've spotted 3 warning signs for Batu Kawan Berhad (of which 2 are significant!) you should know about. 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. Sign in to access your portfolio
