Latest news with #RM0.29
Business Times
27-05-2025
- Automotive
- Business Times
Maybank downgrades Malaysia's Tan Chong Motor to ‘sell' amid widening losses, competition
[SINGAPORE] Maybank Investment Bank has downgraded Malaysia's Tan Chong Motor (TCM) to 'sell', from 'hold' previously, amid widening losses, weak product appeal and intensifying competition. Despite the downgrade, Maybank maintained its target price for the Bursa-listed company at RM0.38, based on an unchanged 0.1 times its forecast book value for FY2025. TCM is the franchise holder for Nissan in Malaysia and Indo-China, as well as Renault in Malaysia and MG in Vietnam. In a report on Monday (May 26), Maybank analyst Loh Yan Jin cited increased downside risks following a recent rally in TCM's share price as the reasons for downgrading its call on the automotive company. The stock has climbed nearly 60 per cent from its 52-week low of RM0.29 to RM0.46 in recent months. 'We believe downside risks have increased following the recent rally in share price,' Loh said. TCM reported a core net loss of RM44.5 million (S$13.5 million) for the first quarter of 2025, more than double the RM18.3 million loss recorded in the same period a year earlier. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Commenting on TCM's widening year-on-year losses, Loh said the latest results were in line with Maybank's full-year forecast of a RM147.3 million loss, but came in below the consensus estimate of a RM129.4 million loss. Revenue for Q1 2025 slipped 2 per cent to RM553 million, weighed down by continued weakness in Nissan sales, which plunged 21 per cent year on year to 1,811 units. However, Loh said the weakness in Malaysia was partially offset by growth in TCM's overseas operations, including Vietnam, Cambodia, Laos and Myanmar. On a quarter-on-quarter basis, TCM's Q1 2025 revenue rose 8.2 per cent from RM511.2 million in Q4 2024, supported by a 22 per cent increase in Nissan sales in Malaysia and higher vehicle assembly and manufacturing activity. Loh attributed this to a rebound from 'seasonally softer' year-end sales, which had been affected by intense promotions and competing model launches. As a result, core net loss for Q1 2025 narrowed by 29 per cent to RM44.5 million from RM62.9 million in Q4 2024. 'Looking ahead, we expect challenges in TCM's automotive segment to persist, underpinned by weak product appeal and intensifying market competition,' Loh said. 'Soft consumer sentiment and unattractive model launches will further weigh down its earnings.' A key re-rating catalyst, she added, would be stronger sales from new product launches or contract assembly deals, but 'visibility remains limited for now'. 'Improved operational efficiencies and better inventory management could also help enhance margins and profitability,' she said. As at 4 pm on Tuesday, shares of TCM are trading RM0.455.
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
08-04-2025
- Business
- Yahoo
What Is Evergreen Fibreboard Berhad's (KLSE:EVERGRN) Share Price Doing?
While Evergreen Fibreboard Berhad (KLSE:EVERGRN) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM0.29 at one point, and dropping to the lows of RM0.19. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Evergreen Fibreboard Berhad's current trading price of RM0.19 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Evergreen Fibreboard Berhad's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The stock is currently trading at RM0.19 on the share market, which means it is overvalued by 34% compared to our intrinsic value of MYR0.14. Not the best news for investors looking to buy! But, is there another opportunity to buy low in the future? Given that Evergreen Fibreboard Berhad's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility. Check out our latest analysis for Evergreen Fibreboard Berhad Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With profit expected to more than double over the next couple of years, the future seems bright for Evergreen Fibreboard Berhad. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? EVERGRN's optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe EVERGRN should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. Are you a potential investor? If you've been keeping an eye on EVERGRN for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there's no upside from mispricing. However, the optimistic prospect is encouraging for EVERGRN, which means it's worth diving deeper into other factors in order to take advantage of the next price drop. If you'd like to know more about Evergreen Fibreboard Berhad as a business, it's important to be aware of any risks it's facing. For example - Evergreen Fibreboard Berhad has 1 warning sign we think you should be aware of. If you are no longer interested in Evergreen Fibreboard Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
02-03-2025
- Business
- Yahoo
New Hoong Fatt Holdings Berhad Full Year 2024 Earnings: EPS: RM0.27 (vs RM0.29 in FY 2023)
Revenue: RM282.3m (flat on FY 2023). Net income: RM44.0m (down 7.8% from FY 2023). Profit margin: 16% (down from 17% in FY 2023). EPS: RM0.27 (down from RM0.29 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period New Hoong Fatt Holdings Berhad's share price is broadly unchanged from a week ago. We should say that we've discovered 2 warning signs for New Hoong Fatt Holdings Berhad that you should be aware of before investing 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
02-03-2025
- Business
- Yahoo
New Hoong Fatt Holdings Berhad Full Year 2024 Earnings: EPS: RM0.27 (vs RM0.29 in FY 2023)
Revenue: RM282.3m (flat on FY 2023). Net income: RM44.0m (down 7.8% from FY 2023). Profit margin: 16% (down from 17% in FY 2023). EPS: RM0.27 (down from RM0.29 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period New Hoong Fatt Holdings Berhad's share price is broadly unchanged from a week ago. We should say that we've discovered 2 warning signs for New Hoong Fatt Holdings Berhad that you should be aware of before investing 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
