Latest news with #RM1.42
Yahoo
30-05-2025
- Business
- Yahoo
Estimating The Fair Value Of Oriental Food Industries Holdings Berhad (KLSE:OFI)
Oriental Food Industries Holdings Berhad's estimated fair value is RM1.66 based on 2 Stage Free Cash Flow to Equity Oriental Food Industries Holdings Berhad's RM1.42 share price indicates it is trading at similar levels as its fair value estimate Peers of Oriental Food Industries Holdings Berhad are currently trading on average at a 143% premium How far off is Oriental Food Industries Holdings Berhad (KLSE:OFI) 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. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you. 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. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. In the first stage we need to estimate the cash flows to the business over the next ten years. 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, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM22.8m RM22.1m RM21.8m RM21.9m RM22.2m RM22.7m RM23.2m RM23.9m RM24.6m RM25.5m Growth Rate Estimate Source Est @ -5.91% Est @ -3.04% Est @ -1.04% Est @ 0.37% Est @ 1.35% Est @ 2.04% Est @ 2.52% Est @ 2.85% Est @ 3.09% Est @ 3.25% Present Value (MYR, Millions) Discounted @ 8.4% RM21.0 RM18.8 RM17.2 RM15.9 RM14.9 RM14.0 RM13.2 RM12.6 RM11.9 RM11.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM151m 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 8.4%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM25m× (1 + 3.6%) ÷ (8.4%– 3.6%) = RM556m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM556m÷ ( 1 + 8.4%)10= RM249m 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 RM399m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of RM1.4, the company appears about fair value at a 15% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the 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 Oriental Food Industries Holdings 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 8.4%, which is based on a levered beta of 0.800. 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. See our latest analysis for Oriental Food Industries Holdings Berhad Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Food market. Opportunity Current share price is below our estimate of fair value. Lack of analyst coverage makes it difficult to determine OFI's earnings prospects. Threat Dividends are not covered by cash flow. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Oriental Food Industries Holdings Berhad, we've compiled three important aspects you should assess: Risks: We feel that you should assess the 2 warning signs for Oriental Food Industries Holdings Berhad we've flagged before making an investment in the company. 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 Top Analyst Picks: Interested to see what the analysts are thinking? Take a look at our interactive list of analysts' top stock picks to find out what they feel might have an attractive future outlook! 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.
BusinessToday
30-05-2025
- Business
- BusinessToday
Analysts Back Sime Darby Property On Its Solid Pipeline Of Projects
Sime Darby Property Bhd - Ready-built Warehouse (Source Official wesite Nov 2024) Sime Darby Property Bhd (SDPR) maintains strong analyst support with RHB Investment Bank Bhd (RHB Research) and Hong Leong Investment Bank Bhd (HLIB) both reaffirming their BUY calls. RHB Research assigns a target price of RM2.33, implying a 64% upside from the current market price of RM1.42, while HLIB maintains a slightly more conservative target price of RM2.05, projecting a 44.4% capital gain plus a dividend yield of 2.3%, resulting in an expected total return of 46.7%. The positive outlook reflects confidence in Sime Darby Property's resilient sales momentum and strategic development plans. According to RHB Research, Sime Darby Property's first quarter of fiscal 2025 earnings fell short of expectations due to delayed recognition of some industrial property sales. Nevertheless, property sales remained robust at RM928 million, putting the company on track to meet its annual sales target of RM3.6 billion. The quarter saw industrial products contributing half of total sales, with residential high-rise, landed residential, and commercial properties making up the remainder. RHB Research noted the upcoming launch of KLGCC Mall in the second half of 2025 and the timely delivery of two data centres as key growth drivers. The firm also highlighted improved cost efficiency and reduced finance expenses as positive factors, with net gearing slightly rising to 0.28 times. HLIB described the first quarter results as within expectations, with core profit after tax and minority interests (PATAMI) rising 20.1% quarter-on-quarter to RM115.6 million despite a 10.8% revenue decline. This was largely attributed to better profit margins from a favourable product mix and lower compliance costs. Sales for the quarter were steady at RM927.5 million, representing about 26% of the company's full-year sales target. HLIB also pointed to strong unbilled sales of RM3.84 billion, the highest since 2017, signalling healthy revenue visibility. The firm forecasts steady earnings growth, adjusting its FY25 and FY26 projections slightly while introducing a positive outlook for FY27 with core PATAMI expected to reach RM663.2 million. Both research houses highlight the strength of Sime Darby Property's industrial segment, with HLIB emphasising the ongoing construction of Google's hyperscale data centre, scheduled for completion in the second half of 2026. The company's investment property portfolio is expanding, with KLGCC Mall nearing opening and strong occupancy gains in its Metrohub industrial assets. These recurring income streams are expected to boost future earnings as leasing activity remains robust. Looking forward, analysts are optimistic about Sime Darby Property's prospects, citing its diversified product offerings across residential, commercial, and industrial sectors as a key advantage. The anticipated completion of the East Coast Rail Link (ECRL) by end-2026 is expected to benefit the company's industrial landbank near Klang station, improving sales and rental yields. Both RHB and HLIB believe the group's balanced approach, combining development-driven growth with steady expansion of its investment property segment positions Sime Darby Property well for sustainable long-term earnings growth. In conclusion, Sime Darby Property continues to deliver on its strategic goals with solid sales momentum and growing recurring income, backed by positive analyst ratings and substantial upside potential from current share prices. Related
New Straits Times
14-05-2025
- Business
- New Straits Times
FBM KLCI slightly lower at midday
KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) ended the morning session slightly lower today, weighed by cautious sentiment amid mixed signals from Wall Street's overnight performance. At 12.30 pm, the FBM KLCI fell 3.55 points to 1,578.84 from Tuesday's close of 1,582.39. The benchmark index, which opened 0.84 of a point higher at 1,583.23, moved between 1,573.44 and 1,583.67 throughout the session. However, the broader market was positive, with 489 gainers surpassing 401 decliners; 470 counters were unchanged, 1,035 untraded and seven suspended. Turnover stood at 2.43 billion shares worth RM1.42 billion. ActivTrades trader Anderson Alves said Asian equities were likely to be under pressure today as the broad risk-off environment is expected to spread across Asian markets today. Among heavyweights, Maybank rose four sen to RM10.24, Tenaga Nasional eased four sen to RM14.30, Public Bank added one sen to RM4.51, CIMB decreased eight sen to RM7.23 and IHH Healthcare gained one sen to RM7.06. In active trade, Nationgate strengthened 11 sen to RM1.74, Tanco added one sen to 94.5 sen, Notion bagged four sen to 73.5 sen, Velesto gained half sen to 16.5 sen and Genetec increased eight sen to RM1.12. On the index board, the FBM Emas Index slipped 6.78 points to 11,790.12, the FBMT 100 Index dropped 14.58 points to 11,546.07, and the FBM Emas Shariah Index went down 0.69 of-a-point to 11,713.17. The FBM 70 Index gained 24.08 points to 16,785.86 and the FBM ACE Index improved by 19.31 points to 4,744.39. Across sectors, the Financial Services Index eased 20.94 points to 18,554.98, the Industrial Products and Services Index was up 0.83 of-a-point to 159.40, the Energy Index bagged 13.15 points to 734.30 while the Plantation Index slid 19.11 points to 7,336.62.
Yahoo
25-03-2025
- Business
- Yahoo
What Does United U-LI Corporation Berhad's (KLSE:ULICORP) Share Price Indicate?
While United U-LI Corporation Berhad (KLSE:ULICORP) might not have the largest market cap around , it received a lot of attention from a substantial price movement on the KLSE over the last few months, increasing to RM1.74 at one point, and dropping to the lows of RM1.42. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether United U-LI Corporation Berhad's current trading price of RM1.54 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at United U-LI Corporation Berhad's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Good news, investors! United U-LI Corporation Berhad is still a bargain right now according to our price multiple model, which compares the company's price-to-earnings ratio to the industry average. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. we find that United U-LI Corporation Berhad's ratio of 9.59x is below its peer average of 18.75x, which indicates the stock is trading at a lower price compared to the Building industry. Although, there may be another chance to buy again in the future. This is because United U-LI Corporation Berhad's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Check out our latest analysis for United U-LI Corporation Berhad Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. United U-LI Corporation Berhad's earnings over the next few years are expected to increase by 66%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value. Are you a shareholder? Since ULICORP is currently trading below the industry PE ratio, it may be a great time to increase your holdings in the stock. With an optimistic profit outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple. Are you a potential investor? If you've been keeping an eye on ULICORP for a while, now might be the time to enter the stock. Its buoyant future profit outlook isn't fully reflected in the current share price yet, which means it's not too late to buy ULICORP. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed investment decision. So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. Every company has risks, and we've spotted 2 warning signs for United U-LI Corporation Berhad you should know about. If you are no longer interested in United U-LI Corporation Berhad, you can use our free platform to see our list of over 50 other stocks with a high growth potential. 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
