Latest news with #RM1.67
The Sun
04-06-2025
- Business
- The Sun
MACC seizes assets worth RM143 million linked to highway sukuk fund misuse
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has seized assets linked to the misuse of sukuk funds of the construction of a highway in Klang Valley believed to be owned by a highway concessionaire with a Tan Sri title totalling RM143 million during an operation conducted last week. Its chief commissioner, Tan Sri Azam Baki said the seizures include 14 individual accounts totalling RM4.5 million, eight company accounts totalling RM33 million, luxury condominium and land worth RM24.5 million, nine cars worth RM7.65 million, and 13 cars that have yet to be handed over to the investigation team. Other items seized include luxury watches worth RM25 million, handbags worth RM3 million, jewellery and diamonds (RM6 million), four horses (RM400,000), alcoholic beverages (RM3 million), foreign assets worth more than RM15 million and around RM20 million in gambling activities. 'Preliminary investigations revealed there was misconduct between 2016 and 2020 involving approved sukuk funds of about RM1.35 billion, involving false claims of about RM360 million and RM416 million and RM50 million in other bank facility loans. 'The RM1.67 billion highway project also failed to be completed according to schedule and investigations are focused on bribes worth RM12 million paid to certain parties as inducement in helping the cash flow out and back to the suspect,' he said in a statement tonight, adding that the proceeds were also believed to have been used in money laundering activities. He explained that to embezzle the funds, the parties involved were believed to have used professionals such as auditors, financial experts, engineers and shell companies. 'Until now, the MACC has yet to take the Tan Sri's statement as he is in a private hospital ward and today the investigating officer will get confirmation from the doctor on the status of the Tan Sri's health before recording his statement. 'Meanwhile, the number of witness statements stands at 45, and those witnesses who have given their statements have been asked to provide further statements,' he said, adding that the investigating team is also tracking down luxury vehicles and properties belonging to the Tan Sri abroad, including in London and Switzerland. The investigation is focused on the true amount of luxury liquor kept by the Tan Sri and the possibility that funds have been transferred to other accounts, he said. He added that an asset declaration notice has been handed to the Tan Sri and other related parties.
The Sun
04-06-2025
- Business
- The Sun
ASSETS WORTH RM143m linked to highway sukuk fund misuse seized
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has seized assets linked to the misuse of sukuk funds of the construction of a highway in Klang Valley believed to be owned by a highway concessionaire with a Tan Sri title totalling RM143 million during an operation conducted last week. Its chief commissioner, Tan Sri Azam Baki said the seizures include 14 individual accounts totalling RM4.5 million, eight company accounts totalling RM33 million, luxury condominium and land worth RM24.5 million, nine cars worth RM7.65 million, and 13 cars that have yet to be handed over to the investigation team. Other items seized include luxury watches worth RM25 million, handbags worth RM3 million, jewellery and diamonds (RM6 million), four horses (RM400,000), alcoholic beverages (RM3 million), foreign assets worth more than RM15 million and around RM20 million in gambling activities. 'Preliminary investigations revealed there was misconduct between 2016 and 2020 involving approved sukuk funds of about RM1.35 billion, involving false claims of about RM360 million and RM416 million and RM50 million in other bank facility loans. 'The RM1.67 billion highway project also failed to be completed according to schedule and investigations are focused on bribes worth RM12 million paid to certain parties as inducement in helping the cash flow out and back to the suspect,' he said in a statement tonight, adding that the proceeds were also believed to have been used in money laundering activities. He explained that to embezzle the funds, the parties involved were believed to have used professionals such as auditors, financial experts, engineers and shell companies. 'Until now, the MACC has yet to take the Tan Sri's statement as he is in a private hospital ward and today the investigating officer will get confirmation from the doctor on the status of the Tan Sri's health before recording his statement. 'Meanwhile, the number of witness statements stands at 45, and those witnesses who have given their statements have been asked to provide further statements,' he said, adding that the investigating team is also tracking down luxury vehicles and properties belonging to the Tan Sri abroad, including in London and Switzerland. The investigation is focused on the true amount of luxury liquor kept by the Tan Sri and the possibility that funds have been transferred to other accounts, he said. He added that an asset declaration notice has been handed to the Tan Sri and other related parties.
Yahoo
12-02-2025
- Business
- Yahoo
CTOS Digital Berhad's (KLSE:CTOS) Intrinsic Value Is Potentially 25% Above Its Share Price
The projected fair value for CTOS Digital Berhad is RM1.50 based on 2 Stage Free Cash Flow to Equity CTOS Digital Berhad's RM1.20 share price signals that it might be 20% undervalued Analyst price target for CTOS is RM1.67, which is 11% above our fair value estimate How far off is CTOS Digital Berhad (KLSE:CTOS) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Believe it or not, it's not too difficult to follow, as you'll see from our example! We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for CTOS Digital Berhad 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. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or 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. Generally we assume that a dollar today is more valuable than a dollar in the future, 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) RM112.5m RM139.6m RM160.5m RM179.1m RM195.5m RM210.1m RM223.4m RM235.6m RM247.2m RM258.4m Growth Rate Estimate Source Analyst x4 Analyst x3 Est @ 14.96% Est @ 11.55% Est @ 9.16% Est @ 7.48% Est @ 6.31% Est @ 5.49% Est @ 4.92% Est @ 4.52% Present Value (MYR, Millions) Discounted @ 8.7% RM103 RM118 RM125 RM128 RM129 RM127 RM125 RM121 RM117 RM112 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM1.2b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. 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 8.7%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM258m× (1 + 3.6%) ÷ (8.7%– 3.6%) = RM5.2b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM5.2b÷ ( 1 + 8.7%)10= RM2.3b 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 RM3.5b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of RM1.2, the company appears a touch undervalued at a 20% 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. Now 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 CTOS Digital 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 8.7%, which is based on a levered beta of 0.918. 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. Strength Earnings growth over the past year exceeded the industry. Debt is not viewed as a risk. Weakness Dividend is low compared to the top 25% of dividend payers in the Professional Services market. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Trading below our estimate of fair value by more than 20%. Threat Dividends are not covered by cash flow. Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. 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. What is the reason for the share price sitting below the intrinsic value? For CTOS Digital Berhad, there are three essential factors you should further examine: Risks: As an example, we've found 1 warning sign for CTOS Digital Berhad that you need to consider before investing here. Future Earnings: How does CTOS's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every Malaysian stock every day, so if you want to find the intrinsic value of any other stock 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.
