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Focus Malaysia
a day ago
- Business
- Focus Malaysia
Bursa Malaysia ends in the red as geopolitical tensions, tariff plans rattle markets
BURSA Malaysia closed lower on Friday, weighed down by heavy selling in technology, healthcare, and logistics stocks, as risk-off sentiment intensified following escalating geopolitical tensions and Washington's plan to impose unilateral tariffs within the next two weeks. At 5 pm, the FBM KLCI slipped 8.51 points, or 0.56 per cent, to 1,518.11 from Thursday's close of 1,526.62. The benchmark index opened 4.15 points weaker at 1,522.47 and fluctuated between 1,515.10 and 1,522.70 during the session. Market breadth was bearish with losers thumping gainers 764 to 250, while 463 counters were unchanged, 944 untraded and 17 suspended. Turnover improved to 2.88 bil units worth RM2.06 bil compared with yesterday's 2.73 bil units worth RM2.07 bil. —June 6, 2025
Focus Malaysia
2 days ago
- Business
- Focus Malaysia
Bursa Malaysia ends marginally higher amid cautious regional sentiment
BURSA Malaysia closed slightly higher today, with the key index climbing 0.18%, supported by buying in utilities and telecommunications heavyweights, despite softer regional sentiment due to profit-taking and caution surrounding the United States-China trade deal. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.78 points to 1,526.62 from Wednesday's close of 1,523.84. The benchmark opened 3.87 points higher at 1,527.71 this morning, and subsequently moved between 1,523.22 to a high of 1,528.72 throughout the session. On the broader market, losers thumped gainers 500 to 379, while 530 counters were unchanged, 986 untraded and 17 suspended. Turnover fell to 2.73 billion units worth RM2.07 bil compared with yesterday's 3.27 billion units worth RM2.59 bil. ‒ June 12, 2025
New Straits Times
2 days ago
- Business
- New Straits Times
Bursa Malaysia ends marginally higher amid cautious regional sentiment
KUALA LUMPUR: Bursa Malaysia closed slightly higher today, with the key index climbing 0.18 per cent, supported by buying in utilities and telecommunications heavyweights, despite softer regional sentiment due to profit-taking and caution surrounding the United States-China trade deal. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.78 points to 1,526.62 from Wednesday's close of 1,523.84. The benchmark opened 3.87 points higher at 1,527.71 this morning, and subsequently moved between 1,523.22 to a high of 1,528.72 throughout the session. On the broader market, losers thumped gainers 500 to 379, while 530 counters were unchanged, 986 untraded and 17 suspended. Turnover fell to 2.73 billion units worth RM2.07 billion compared with yesterday's 3.27 billion units worth RM2.59 billion. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI edged higher with buying in selective heavyweights such as utilities and telco stocks, while key regional indices finished mostly lower due to profit-taking following gains over the last few days. "In addition, market sentiment was dampened by US President Donald Trump's threat to impose new trade tariffs on major economies, while investors remained cautious, awaiting further details on the US-China trade deal," he told Bernama. Elaborating on the local market performance, Thong noted that the benchmark index remains in consolidation mode despite closing higher over the past two sessions, as it still needs to break above the 1,530 resistance level and sustain that level for a longer period. "As such we anticipate the FBM KLCI to trend within the 1,520-1,530 range towards the weekend," he added.
Yahoo
31-03-2025
- Business
- Yahoo
Is Kerjaya Prospek Group Berhad (KLSE:KERJAYA) Worth RM2.1 Based On Its Intrinsic Value?
The projected fair value for Kerjaya Prospek Group Berhad is RM1.64 based on 2 Stage Free Cash Flow to Equity Kerjaya Prospek Group Berhad is estimated to be 27% overvalued based on current share price of RM2.07 Our fair value estimate is 33% lower than Kerjaya Prospek Group Berhad's analyst price target of RM2.45 How far off is Kerjaya Prospek Group Berhad (KLSE:KERJAYA) 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. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. 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. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or 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. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, 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) RM40.4m RM127.3m RM135.1m RM142.4m RM149.2m RM155.9m RM162.5m RM169.0m RM175.6m RM182.3m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 6.13% Est @ 5.37% Est @ 4.84% Est @ 4.47% Est @ 4.21% Est @ 4.03% Est @ 3.90% Est @ 3.81% Present Value (MYR, Millions) Discounted @ 9.7% RM36.8 RM106 RM102 RM98.2 RM93.9 RM89.4 RM84.9 RM80.5 RM76.2 RM72.1 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM840m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 9.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM182m× (1 + 3.6%) ÷ (9.7%– 3.6%) = RM3.1b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM3.1b÷ ( 1 + 9.7%)10= RM1.2b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is RM2.1b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of RM2.1, the company appears slightly overvalued 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. 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. 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 Kerjaya Prospek Group 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 9.7%, which is based on a levered beta of 1.031. 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. View our latest analysis for Kerjaya Prospek Group Berhad Strength Earnings growth over the past year exceeded its 5-year average. Debt is not viewed as a risk. Dividends are covered by earnings and cash flows. Dividend is in the top 25% of dividend payers in the market. Weakness Earnings growth over the past year underperformed the Construction industry. 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 Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it ideally won't be the sole piece of analysis you scrutinize 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. What is the reason for the share price exceeding the intrinsic value? For Kerjaya Prospek Group Berhad, we've compiled three essential elements you should further research: Risks: As an example, we've found 1 warning sign for Kerjaya Prospek Group Berhad that you need to consider before investing here. Future Earnings: How does KERJAYA'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. Sign in to access your portfolio
