Latest news with #RM41m
Malaysian Reserve
22-04-2025
- Automotive
- Malaysian Reserve
MSB Global drops 15% on ACE Market debut
The IPO raises RM41m for the company MSB Global Group Bhd saw its shares fall 15% on its ACE Market debut on April 15, closing at 17 sen, down from its IPO price of 20 sen per share. The share price opened at 17 sen, fluctuated between 16.5 sen and 18 sen, and settled at 17 sen, with 63.85 million shares changing hands. Despite the dip, the FTSE Bursa Malaysia KLCI (FBM KLCI) ended the day 0.38% higher. Investor interest during the IPO was relatively weak, with retail applications oversubscribed by only six times the available shares. The offering raised RM41.4 million for the company. 'Our debut on the ACE Market represents more than just a financial milestone, it's a strategic leap forward for our growth. 'With the capital raised, we will enhance our production infrastructure, broaden our product offerings and continue driving innovation in both the aftermarket automotive and emerging electric vehicle (EV) segment. 'We are grateful for the trust of our investors and the dedication of our team,' MSB Global's MD Datuk Ow Kee Foo said in a statement. The company plans to allocate 22.58% of the proceeds to purchase new machinery, 18.7% for the construction of a new factory and warehouse, and 3.14% for developing an in-house EV charger. The remainder will go towards repaying bank borrowings, working capital and listing expenses. MSB Global expects strong growth in Malaysia's aftermarket automotive industry, driven by an increasing vehicle population and rising demand for high-performance automotive parts and lubricants. With its well-established distribution network, the company aims to capitalise on the growing automotive lubricants and fluids market. M&A Securities acted as the principal advisor, sponsor and placement agent for the IPO. — TMR This article first appeared in The Malaysian Reserve weekly print edition
Yahoo
17-04-2025
- Business
- Yahoo
Kimlun Corporation Berhad (KLSE:KIMLUN) May Have Issues Allocating Its Capital
Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach is to try and find a company with returns on capital employed (ROCE) that are increasing, in conjunction with a growing amount of capital employed. This shows us that it's a compounding machine, able to continually reinvest its earnings back into the business and generate higher returns. However, after briefly looking over the numbers, we don't think Kimlun Corporation Berhad (KLSE:KIMLUN) has the makings of a multi-bagger going forward, but let's have a look at why that may be. Our free stock report includes 2 warning signs investors should be aware of before investing in Kimlun Corporation Berhad. Read for free now. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. The formula for this calculation on Kimlun Corporation Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.039 = RM41m ÷ (RM2.1b - RM1.0b) (Based on the trailing twelve months to December 2024). So, Kimlun Corporation Berhad has an ROCE of 3.9%. In absolute terms, that's a low return and it also under-performs the Construction industry average of 10.0%. View our latest analysis for Kimlun Corporation Berhad Above you can see how the current ROCE for Kimlun Corporation Berhad compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like, you can check out the forecasts from the analysts covering Kimlun Corporation Berhad for free. On the surface, the trend of ROCE at Kimlun Corporation Berhad doesn't inspire confidence. Over the last five years, returns on capital have decreased to 3.9% from 10% five years ago. However, given capital employed and revenue have both increased it appears that the business is currently pursuing growth, at the consequence of short term returns. If these investments prove successful, this can bode very well for long term stock performance. On a separate but related note, it's important to know that Kimlun Corporation Berhad has a current liabilities to total assets ratio of 49%, which we'd consider pretty high. This effectively means that suppliers (or short-term creditors) are funding a large portion of the business, so just be aware that this can introduce some elements of risk. Ideally we'd like to see this reduce as that would mean fewer obligations bearing risks. In summary, despite lower returns in the short term, we're encouraged to see that Kimlun Corporation Berhad is reinvesting for growth and has higher sales as a result. Furthermore the stock has climbed 45% over the last five years, it would appear that investors are upbeat about the future. So while investors seem to be recognizing these promising trends, we would look further into this stock to make sure the other metrics justify the positive view. Kimlun Corporation Berhad does have some risks, we noticed 2 warning signs (and 1 which is a bit concerning) we think you should know about. While Kimlun Corporation Berhad may not currently earn the highest returns, we've compiled a list of companies that currently earn more than 25% return on equity. Check out this free list 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
