Latest news with #RM1.52
Barnama
2 days ago
- Business
- Barnama
Bank Rakyat Launches ‘Kembara Qurban Kemboja 2025' To Support Cambodian Muslims
KUALA LUMPUR, June 6 (Bernama) -- Bank Rakyat today launched the 'Kembara Qurban Kemboja 2025' programme by sending a delegation to support the Muslim community in Cambodia in conjunction with the Aidiladha celebration tomorrow. Its deputy chief executive officer, Nor Haimee Zakaria, said a total of 45 cows will be handed over for the 'qurban' (sacrificial ritual) and distributed to Muslim residents of Kampung Trapeng Prinh and Kampung Keh in Cambodia. He said the programme aims to assist underprivileged rural communities while expanding Bank Rakyat's community outreach efforts abroad. 'This qurban initiative, implemented since 2015, has benefited various communities, particularly the 'asnaf' group,' he said in a statement today. He said Bank Rakyat, together with its strategic partners, also distributed basic food aid to 150 families in Kampung Swai Relom, Kandal Province, with each family receiving 10 kilogrammes of rice. The strategic partners for the programme are Maahad Imam Syafi'e (MIS) Kampung Keh, Kampot; Wakaf Endowmen Zakat Khairat and Sedekah Centre (WEZAS) of Universiti Pendidikan Sultan Idris (UPSI); Yayasan As-Syafi'e; and Shafi'e Charitable Association. Meanwhile, Nor Haimee said efforts to support local communities continue through the 'Hulurkan Salam Aidiladha' programme from June 7 to 20, involving the distribution of beef and mutton from 241 cows and 159 goats. He said the distribution involves contributions from holders of the Simpanan-i Tabung Qurban Account and Surau Al-Barakah at Menara Kembar Bank Rakyat (MKBR), amounting to over RM1.52 million. 'Bank Rakyat remains committed to enriching local communities, as their strength is a result of the support from members and clients across the country.
Yahoo
17-05-2025
- Business
- Yahoo
Estimating The Intrinsic Value Of United U-LI Corporation Berhad (KLSE:ULICORP)
United U-LI Corporation Berhad's estimated fair value is RM1.52 based on 2 Stage Free Cash Flow to Equity With RM1.54 share price, United U-LI Corporation Berhad appears to be trading close to its estimated fair value When compared to theindustry average discount of -2,008%, United U-LI Corporation Berhad's competitors seem to be trading at a greater premium to fair value Today we will run through one way of estimating the intrinsic value of United U-LI Corporation Berhad (KLSE:ULICORP) 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 would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. Our free stock report includes 2 warning signs investors should be aware of before investing in United U-LI Corporation Berhad. Read for free now. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. In the first stage we need to estimate the cash flows to the business over the next ten years. 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 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) RM28.0m RM26.7m RM26.1m RM25.9m RM26.1m RM26.5m RM27.1m RM27.8m RM28.6m RM29.5m Growth Rate Estimate Source Est @ -8.46% Est @ -4.84% Est @ -2.31% Est @ -0.54% Est @ 0.71% Est @ 1.57% Est @ 2.18% Est @ 2.61% Est @ 2.90% Est @ 3.11% Present Value (MYR, Millions) Discounted @ 10% RM25.4 RM21.9 RM19.4 RM17.5 RM15.9 RM14.7 RM13.6 RM12.6 RM11.8 RM11.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM164m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. 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) = RM30m× (1 + 3.6%) ÷ (10%– 3.6%) = RM451m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM451m÷ ( 1 + 10%)10= RM168m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM332m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of RM1.5, 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. 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 United U-LI 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 1.144. 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. See our latest analysis for United U-LI Corporation Berhad Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Building 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 Dividends are not covered by cash flow. Whilst important, the DCF calculation ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. 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. For United U-LI Corporation Berhad, we've compiled three essential factors you should look at: Risks: You should be aware of the 2 warning signs for United U-LI Corporation Berhad we've uncovered before considering an investment in the company. Future Earnings: How does ULICORP'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 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! 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
