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Growing Malaysia's downstream space sector
Growing Malaysia's downstream space sector

New Straits Times

time26-05-2025

  • Business
  • New Straits Times

Growing Malaysia's downstream space sector

KUALA LUMPUR: The Malaysia Industry-Government Group for High Technology (MIGHT) is intensifying efforts to foster public-private collaboration and spur innovation in high-tech sectors. President and chief executive officer Ts. Rushdi Abdul Rahim said aid MIGHT's enhanced role reflects a deeper focus on advancing national and regional synergy in key technology areas. MIGHT is spotlighting fast-growing industries such as advanced air mobility, aerospace, space technology, and shipbuilding and ship repair. Acting as a policy enabler, it provides technical advice to ministries and facilitates collaborations between local and international players. Key milestones include the formulation of the National Technology Policy, strategic aerospace frameworks, and flagship initiatives with partners from Türkiye, Indonesia, Qatar, and Japan. MIGHT and its partners recently unveiled four major reports, including the Space Industry Development Programme Initiative, which charts a course for growing Malaysia's downstream space sector. The agency also marked the launch of UzmaSAT-1, Malaysia's first Earth observation satellite by Uzma Berhad, and the AI-powered Uzma Digital Earth platform to support sectors like agriculture, disaster management, and national security. Rushdi said MIGHT continues to support local firms with certification assistance, global market access strategies, and workforce development through TVET and related programmes. However, he acknowledged ongoing hurdles, including coordination gaps, talent shortages, and the need to accelerate tech transfer and investor confidence. "I call on all stakeholders to make technology a central pillar of national development. Malaysia has tremendous potential in high technology," he said. MIGHT will remain a key force in driving, facilitating, and catalysing the national technology ecosystem, working to position Malaysia as an innovative, competitive, and future-ready player on the global stage, he said.

Uzma Berhad (KLSE:UZMA) investors are sitting on a loss of 56% if they invested a year ago
Uzma Berhad (KLSE:UZMA) investors are sitting on a loss of 56% if they invested a year ago

Yahoo

time23-04-2025

  • Business
  • Yahoo

Uzma Berhad (KLSE:UZMA) investors are sitting on a loss of 56% if they invested a year ago

The nature of investing is that you win some, and you lose some. And unfortunately for Uzma Berhad (KLSE:UZMA) shareholders, the stock is a lot lower today than it was a year ago. To wit the share price is down 57% in that time. The silver lining (for longer term investors) is that the stock is still 17% higher than it was three years ago. The falls have accelerated recently, with the share price down 29% in the last three months. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. We've discovered 4 warning signs about Uzma Berhad. View them for free. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Unfortunately Uzma Berhad reported an EPS drop of 3.9% for the last year. This reduction in EPS is not as bad as the 57% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The less favorable sentiment is reflected in its current P/E ratio of 5.65. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). We know that Uzma Berhad has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time. We regret to report that Uzma Berhad shareholders are down 56% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 3.4%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 1.0% per year over half a decade. 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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Uzma Berhad (of which 2 shouldn't be ignored!) you should know about. We will like Uzma Berhad better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. 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. Sign in to access your portfolio

Concerns Surrounding Uzma Berhad's (KLSE:UZMA) Performance
Concerns Surrounding Uzma Berhad's (KLSE:UZMA) Performance

Yahoo

time28-02-2025

  • Business
  • Yahoo

Concerns Surrounding Uzma Berhad's (KLSE:UZMA) Performance

The recent earnings posted by Uzma Berhad (KLSE:UZMA) were solid, but the stock didn't move as much as we expected. We think this is due to investors looking beyond the statutory profits and being concerned with what they see. View our latest analysis for Uzma Berhad Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. The ratio shows us how much a company's profit exceeds its FCF. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. For the year to December 2024, Uzma Berhad had an accrual ratio of 0.35. Therefore, we know that it's free cashflow was significantly lower than its statutory profit, raising questions about how useful that profit figure really is. Even though it reported a profit of RM41.7m, a look at free cash flow indicates it actually burnt through RM366m in the last year. We also note that Uzma Berhad's free cash flow was actually negative last year as well, so we could understand if shareholders were bothered by its outflow of RM366m. Unfortunately for shareholders, the company has also been issuing new shares, diluting their share of future earnings. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. To understand the value of a company's earnings growth, it is imperative to consider any dilution of shareholders' interests. Uzma Berhad expanded the number of shares on issue by 14% over the last year. As a result, its net income is now split between a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out Uzma Berhad's historical EPS growth by clicking on this link. Three years ago, Uzma Berhad lost money. On the bright side, in the last twelve months it grew profit by 6.8%. But EPS was far less impressive, dropping 3.9% in that time. This is a great example of why it's rather imprudent to rely only on net income as a growth measure. So you can see that the dilution has had a bit of an impact on shareholders. If Uzma Berhad's EPS can grow over time then that drastically improves the chances of the share price moving in the same direction. But on the other hand, we'd be far less excited to learn profit (but not EPS) was improving. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. As it turns out, Uzma Berhad couldn't match its profit with cashflow and its dilution means that shareholders own less of the company than the did before (unless they bought more shares). For the reasons mentioned above, we think that a perfunctory glance at Uzma Berhad's statutory profits might make it look better than it really is on an underlying level. So while earnings quality is important, it's equally important to consider the risks facing Uzma Berhad at this point in time. Every company has risks, and we've spotted 4 warning signs for Uzma Berhad (of which 2 are potentially serious!) you should know about. Our examination of Uzma Berhad has focussed on certain factors that can make its earnings look better than they are. And, on that basis, we are somewhat skeptical. But there is always more to discover if you are capable of focussing your mind on minutiae. 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) 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

Uzma Berhad Second Quarter 2025 Earnings: EPS: RM0.028 (vs RM0.033 in 2Q 2024)
Uzma Berhad Second Quarter 2025 Earnings: EPS: RM0.028 (vs RM0.033 in 2Q 2024)

Yahoo

time22-02-2025

  • Business
  • Yahoo

Uzma Berhad Second Quarter 2025 Earnings: EPS: RM0.028 (vs RM0.033 in 2Q 2024)

Revenue: RM135.6m (down 1.7% from 2Q 2024). Net income: RM12.0m (down 5.1% from 2Q 2024). Profit margin: 8.8% (down from 9.2% in 2Q 2024). The decrease in margin was driven by lower revenue. EPS: RM0.028 (down from RM0.033 in 2Q 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 9.9% p.a. on average during the next 3 years, compared to a 5.1% decline forecast for the Energy Services industry in Malaysia. Performance of the Malaysian Energy Services industry. The company's shares are down 4.5% from a week ago. What about risks? Every company has them, and we've spotted 4 warning signs for Uzma Berhad (of which 2 are significant!) you should know about. 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.

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