Latest news with #RM2.45
The Sun
4 days ago
- Business
- The Sun
Scams, trust issues plague secondhand motorcycle market in Malaysia
KUALA LUMPUR: Malaysia's secondhand motorcycle market continues to grapple with trust issues as buyers face growing risks of fraud and a lack of transparency in transactions. chief executive officer Gil Carmo said unlike the used car segment, the motorcycle resale market remains largely informal and often operates without standardised inspection or certification systems. 'With online classifieds and social media enabling easy access to buyers, fraudsters can post seemingly attractive listings, sometimes priced below market value, to lure in victims. 'The lack of traceable sellers and formal platforms allows such scams to persist, and without physical showrooms or accountability, it becomes difficult to take action once buyers are deceived,' he told Bernama. Carmo stressed the importance of buyer education and awareness, noting that red flags often include listings without warranty or return policies, unverified sellers, and prices that appear too good to be true. 'Although efforts are underway by some market players to introduce structured inspections, verified documentation, and post-sale protections, there is still room for the industry to improve buyer safeguards and overall transparency. 'Buyers deserve peace of mind just as much as a good price, and until that becomes the norm, trust will remain the biggest hurdle,' he said. The CEO highlighted several common scams in the market, including odometer tampering, where high-mileage motorcycles are disguised as low-usage units to fetch inflated prices, a practice that continues to trap many unsuspecting buyers. 'Other scams include illegal modifications, forged ownership documents, and sellers who disappear after receiving upfront payments. 'These bikes may come with hidden reliability issues or unresolved financing status, which buyers often only discover when attempting to transfer ownership,' he said. To mitigate such risks, Carmo said his company has implemented several measures, including a 170-point inspection by in-house mechanics, verification of legal documents, and a six-day return policy with a six-month warranty. 'These steps are aimed at giving buyers peace of mind. We also ensure full transparency by using only company-taken photos and videos for listings, and we encourage test rides so buyers know exactly what they're getting,' he added. iMotorbike is a Southeast Asian online platform that facilitates the buying and selling of pre-owned motorcycles, offering services such as inspections, warranties, and financing to ensure a safe and transparent transaction experience. The Bukit Aman Commercial Crime Investigation Department (CCID) disclosed that total losses from commercial crimes last year amounted to RM3.11 billion, with 41,701 investigation papers initiated. Former CCID director Datuk Seri Ramli Mohamed Yoosuf revealed that fraud was the most prevalent crime with 73,240 cases resulting in losses exceeding RM2.45 billion. Of this, online fraud accounted for 35,368 cases involving a loss of RM1.57 billion, as reported by Bernama previously.
BusinessToday
29-05-2025
- Business
- BusinessToday
Synergy House's Profit Plunges 73% To RM2.4 Million Despite Higher Revenue
Cross-border e-commerce seller and exporter of ready-to-assemble home furniture, Synergy House Bhd, net profit for the first quarter ended March 31, 2025 (1Q25) experienced a significant drop despite the group achieving a higher revenue figure for the quarter. For 1Q25, the group's net profit decreased by 72.8% to RM2.45 million from RM9.01 million. This is despite the group recording revenue of RM88.1 million, a 5.3% increase from RM83.7 million in the corresponding period last year. This was underpinned by a strong performance in the group's business-to-consumer (B2C) segment. The group's B2C revenue soared 17.3% year-on-year to RM51.2 million, up from RM43.7 million in the corresponding quarter last year. This performance was fuelled by strong demand from North America, Europe and Malaysia, as Synergy House continues to expand its presence on major e-commerce platforms and tap into evolving consumer trends. The positive momentum in B2C helped partially offset a 7.8% contraction in business-to-business (B2B) revenue, which stood at RM36.9 million compared to RM40 million in 1Q24. The B2B segment faced headwinds from geopolitical tensions in Europe and Asia, although North American markets remained resilient. Despite the profit dip, Synergy House Executive Director Tan Eu Tah said the group's financial position remains strong. 'As of March 31, 2025, the group reported shareholders' funds of RM126.2 million, a net gearing ratio of just 0.09 times and a healthy current ratio of 1.9 times. 'The group also held RM59.9 million in cash, bank balances and short-term investments, reinforcing its liquidity and ability to navigate short-term obligations,' Tan said, adding that the group will maintain a cautiously optimistic outlook for the remainder of FY25. 'We are sharpening our B2C strategy by diversifying across more e-commerce platforms and expanding into premium product categories that align with shifting consumer preferences. 'Our investment in artificial intelligence and market intelligence tools is equipping us with real-time insights to respond faster and smarter,' he said. While the near-term outlook remains clouded by macro and geopolitical risks, Tan said Synergy House is anchoring its strategy on digital transformation, product innovation and resilient e-commerce channels. 'We are committed to responsible growth that delivers long-term value to our stakeholders. 'By blending innovation with operational discipline, we aim to strengthen our position as a global player in the online furniture retail space,' Tan added. Related
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
