Latest news with #RM65m
Yahoo
07-05-2025
- Business
- Yahoo
Earnings Troubles May Signal Larger Issues for Chin Hin Group Berhad (KLSE:CHINHIN) Shareholders
A lackluster earnings announcement from Chin Hin Group Berhad (KLSE:CHINHIN) last week didn't sink the stock price. We think that investors are worried about some weaknesses underlying the earnings. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. KLSE:CHINHIN Earnings and Revenue History May 7th 2025 The Impact Of Unusual Items On Profit For anyone who wants to understand Chin Hin Group Berhad's profit beyond the statutory numbers, it's important to note that during the last twelve months statutory profit gained from RM65m worth of unusual items. While it's always nice to have higher profit, a large contribution from unusual items sometimes dampens our enthusiasm. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And, after all, that's exactly what the accounting terminology implies. We can see that Chin Hin Group Berhad's positive unusual items were quite significant relative to its profit in the year to December 2024. All else being equal, this would likely have the effect of making the statutory profit a poor guide to underlying earnings power. Note: we always recommend investors check balance sheet strength. Click here to be taken to our balance sheet analysis of Chin Hin Group Berhad. Our Take On Chin Hin Group Berhad's Profit Performance As previously mentioned, Chin Hin Group Berhad's large boost from unusual items won't be there indefinitely, so its statutory earnings are probably a poor guide to its underlying profitability. As a result, we think it may well be the case that Chin Hin Group Berhad's underlying earnings power is lower than its statutory profit. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. So while earnings quality is important, it's equally important to consider the risks facing Chin Hin Group Berhad at this point in time. Every company has risks, and we've spotted 3 warning signs for Chin Hin Group Berhad (of which 1 is significant!) you should know about. Today we've zoomed in on a single data point to better understand the nature of Chin Hin Group Berhad's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) This 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
12-03-2025
- Business
- Yahoo
Glostrext Berhad (KLSE:GLXT) Shareholders Will Want The ROCE Trajectory To Continue
There are a few key trends to look for if we want to identify the next 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. Ultimately, this demonstrates that it's a business that is reinvesting profits at increasing rates of return. So on that note, Glostrext Berhad (KLSE:GLXT) looks quite promising in regards to its trends of return on capital. If you haven't worked with ROCE before, it measures the 'return' (pre-tax profit) a company generates from capital employed in its business. The formula for this calculation on Glostrext Berhad is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = RM6.8m ÷ (RM65m - RM4.5m) (Based on the trailing twelve months to December 2024). Therefore, Glostrext Berhad has an ROCE of 11%. In absolute terms, that's a satisfactory return, but compared to the Construction industry average of 8.9% it's much better. View our latest analysis for Glostrext Berhad While the past is not representative of the future, it can be helpful to know how a company has performed historically, which is why we have this chart above. If you'd like to look at how Glostrext Berhad has performed in the past in other metrics, you can view this free graph of Glostrext Berhad's past earnings, revenue and cash flow. Glostrext Berhad is displaying some positive trends. Over the last four years, returns on capital employed have risen substantially to 11%. Basically the business is earning more per dollar of capital invested and in addition to that, 62% more capital is being employed now too. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. To sum it up, Glostrext Berhad has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Considering the stock has delivered 3.7% to its stockholders over the last year, it may be fair to think that investors aren't fully aware of the promising trends yet. Given that, we'd look further into this stock in case it has more traits that could make it multiply in the long term. Glostrext Berhad does have some risks, we noticed 3 warning signs (and 1 which can't be ignored) we think you should know about. If you want to search for solid companies with great earnings, check out this free list of companies with good balance sheets and impressive returns on equity. 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
21-02-2025
- Business
- Yahoo
Calculating The Fair Value Of Aimflex Berhad (KLSE:AIMFLEX)
Using the 2 Stage Free Cash Flow to Equity, Aimflex Berhad fair value estimate is RM0.096 With RM0.12 share price, Aimflex Berhad appears to be trading close to its estimated fair value When compared to theindustry average discount of -113%, Aimflex Berhad's competitors seem to be trading at a greater premium to fair value Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Aimflex Berhad (KLSE:AIMFLEX) as an investment opportunity by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. Don't get put off by the jargon, the math behind it is actually quite straightforward. 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. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. See our latest analysis for Aimflex Berhad 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. 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. 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) RM11.1m RM10.5m RM10.1m RM9.99m RM10.0m RM10.1m RM10.3m RM10.6m RM10.9m RM11.2m Growth Rate Estimate Source Est @ -10.40% Est @ -6.20% Est @ -3.26% Est @ -1.20% Est @ 0.24% Est @ 1.25% Est @ 1.95% Est @ 2.45% Est @ 2.79% Est @ 3.04% Present Value (MYR, Millions) Discounted @ 9.7% RM10.2 RM8.7 RM7.7 RM6.9 RM6.3 RM5.8 RM5.4 RM5.1 RM4.7 RM4.5 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM65m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond 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 9.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM11m× (1 + 3.6%) ÷ (9.7%– 3.6%) = RM192m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM192m÷ ( 1 + 9.7%)10= RM76m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is RM141m. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of RM0.1, the company appears around fair value at the time of writing. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. 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 Aimflex 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 1.023. 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. Whilst important, the DCF calculation is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Aimflex Berhad, there are three essential factors you should explore: Risks: Take risks, for example - Aimflex Berhad has 3 warning signs we think you should be aware of. 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! 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.
