Latest news with #Unisem
Yahoo
3 days ago
- Business
- Yahoo
Investors in Unisem (M) Berhad (KLSE:UNISEM) have seen strong returns of 127% over the past five years
When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Unisem (M) Berhad (KLSE:UNISEM) which saw its share price drive 105% higher over five years. It's down 2.5% in the last seven days. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Unisem (M) Berhad actually saw its EPS drop 6.3% per year. This means it's unlikely the market is judging the company based on earnings growth. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. We note that the dividend is higher than it was previously - always nice to see. Maybe dividend investors have helped support the share price. We'd posit that the revenue growth over the last five years, of 4.7% per year, would encourage people to invest. The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image). Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Unisem (M) Berhad's TSR for the last 5 years was 127%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence! While the broader market lost about 5.9% in the twelve months, Unisem (M) Berhad shareholders did even worse, losing 50% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 18%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Unisem (M) Berhad (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. 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 while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
BusinessToday
19-05-2025
- Business
- BusinessToday
US Tariff Uncertainty Dampens Outlook For Malaysia's Semiconductor Industry: CGS
Renewed US tariff measures are clouding the growth outlook for Malaysia's semiconductor industry, with local manufacturers scrambling to adjust production plans amid shifting trade policies, according to a new report by CGS International. The research house highlights that 32% of the sector's revenues in fiscal 2024 were exposed to the United States and 18% to China, leaving key players like Genetec, Unisem, and SAM Engineering particularly vulnerable on the US side (33–81% exposure) and ViTrox and Mi Technovation on the China side (37–44% exposure). Ahead of a 90-day tariff pause that ends on 9 July 2025, CGS's channel checks found some firms are preloading orders, yet raw-material and component shortages have capped any meaningful sales surge. Meanwhile, final decisions on semiconductor-specific tariffs—and broader US efforts to reshore chip production—remain pending, perpetuating uncertainty. Earnings Downgrades and EPS Forecast Cuts Anticipating a slowdown in capital-expenditure by chipmakers and weaker downstream demand, CGS has slashed its calendar-year 2025–26 EPS forecasts by around 22% for its Malaysian coverage universe. While a short-lived bump in second-quarter earnings is possible from front-loaded orders, lingering tariff risks and elevated inventories—particularly in the automotive and industrial segments—are expected to dampen profits in the second half of 2025. CGS now sees flat sector EPS in 2025 and 21% growth in 2026, figures that sit 15–17% below Bloomberg consensus. Valuation Disconnect Fuels Underweight Calls Despite recent share-price declines, the report warns that sector valuations remain disconnected from fundamentals. On CGS's revised forecasts, the Malaysian semiconductor index trades at 24.9x 2026 P/E, well above the pre-pandemic 2015–19 average of 17.8x. With consensus earnings still too bullish, CGS expects a re-rating toward historical multiples, particularly as tariff differentials and supply-chain rerouting under a China+1 strategy materialise slowly amid heightened US scrutiny. Stock Ratings Reflecting these headwinds, CGS maintains an Underweight stance on the sector. It has reduced positions in Unisem, MPI, Inari, ViTrox, Genetec, and SAM Engineering; kept Hold on Pentamaster and Uchi Technologies; and upgraded Mi Technovation to Add, citing its stronger positioning in China-centred and server-focused markets. Related
