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Five-year shield for CRC players
Five-year shield for CRC players

The Star

time07-07-2025

  • Business
  • The Star

Five-year shield for CRC players

THE government has extended anti-dumping duties on cold rolled coils (CRCs) of iron or non-alloy steel from China and Japan for five more years in a move to protect its domestic steel industry from unfair foreign competition. The extension, from June 23, 2025, to June 22, 2030, is seen as a welcomed move as it will continue to be a buffer for local manufacturers whose margins have been squeezed by a flood of cheaper imports in recent years. Billed as RM9.73 for the 1st month then RM13.90 thereafters. RM12.33/month RM8.63/month Billed as RM103.60 for the 1st year then RM148 thereafters. Free Trial For new subscribers only Trading ideas: Edelteq, WCT, Green Packet, MAG, Capital A, Mudajaya, Mesiniage, MN, Kretam, Kim Hin, TeamStar, ISF

Impact analysis as tariff deadline looms
Impact analysis as tariff deadline looms

The Star

time07-07-2025

  • Business
  • The Star

Impact analysis as tariff deadline looms

ON Wednesday night, July 9, company owners, investors and politicians will likely be consuming copious amounts of coffee, meticulously analysing scenarios and countermeasures as they anxiously await updates on the US government's stance on tariffs, particularly from President Donald Trump. That is the last day of the 90-day reprieve Trump granted the world before implementing arbitrary tariffs. Billed as RM9.73 for the 1st month then RM13.90 thereafters. RM12.33/month RM8.63/month Billed as RM103.60 for the 1st year then RM148 thereafters. Free Trial For new subscribers only Trading ideas: Edelteq, WCT, Green Packet, MAG, Capital A, Mudajaya, Mesiniage, MN, Kretam, Kim Hin, TeamStar, ISF

A Look At The Intrinsic Value Of Edelteq Holdings Berhad (KLSE:EDELTEQ)
A Look At The Intrinsic Value Of Edelteq Holdings Berhad (KLSE:EDELTEQ)

Yahoo

time18-06-2025

  • Business
  • Yahoo

A Look At The Intrinsic Value Of Edelteq Holdings Berhad (KLSE:EDELTEQ)

Edelteq Holdings Berhad's estimated fair value is RM0.20 based on 2 Stage Free Cash Flow to Equity Current share price of RM0.23 suggests Edelteq Holdings Berhad is potentially trading close to its fair value Edelteq Holdings Berhad's peers seem to be trading at a higher premium to fair value based onthe industry average of -224% In this article we are going to estimate the intrinsic value of Edelteq Holdings Berhad (KLSE:EDELTEQ) by taking the forecast future cash flows of the company and discounting them back to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. 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. 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, 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) RM7.12m RM8.30m RM9.36m RM10.3m RM11.1m RM11.9m RM12.6m RM13.2m RM13.8m RM14.4m Growth Rate Estimate Source Est @ 22.14% Est @ 16.59% Est @ 12.71% Est @ 9.99% Est @ 8.08% Est @ 6.75% Est @ 5.82% Est @ 5.16% Est @ 4.71% Est @ 4.39% Present Value (MYR, Millions) Discounted @ 13% RM6.3 RM6.5 RM6.5 RM6.4 RM6.1 RM5.8 RM5.5 RM5.1 RM4.7 RM4.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM57m 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 13%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM14m× (1 + 3.6%) ÷ (13%– 3.6%) = RM166m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM166m÷ ( 1 + 13%)10= RM50m 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 RM108m. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of RM0.2, the company appears around fair value at the time of writing. 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. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. 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 Edelteq 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 13%, which is based on a levered beta of 1.522. 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. Check out our latest analysis for Edelteq Holdings Berhad Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize 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. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Edelteq Holdings Berhad, we've put together three fundamental factors you should look at: Risks: For example, we've discovered 4 warning signs for Edelteq Holdings Berhad (2 shouldn't be ignored!) that you should be aware of before investing here. 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! 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. 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

Edelteq unit in JV with Halo Technologies
Edelteq unit in JV with Halo Technologies

The Star

time03-06-2025

  • Business
  • The Star

Edelteq unit in JV with Halo Technologies

PETALING JAYA: Edelteq Holdings Bhd 's wholly owned subsidiary Edelteq Ventures Sdn Bhd has formed a joint venture (JV) with Halo Technologies Sdn Bhd to manufacture and commercialise automated optical inspection (AOI) machines. The JV company, called Halovision System Sdn Bhd, will target applications in Substrate Panel (Raptor series) and semiconductor wafer Level (i-Falke series) inspection. Edelteq and Halovision will each have a 50% share in the joint venture. In a filing with Bursa Malaysia, Edelteq said the JV will provide a potential new income stream through profit-sharing from the JV company, with scalability across regional markets. 'The board believes that the proposed joint venture will contribute positively to the future performance and competitiveness of the Edelteq group. The proposed JV is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and the substantial shareholders' shareholdings of Edelteq for the financial year ending Dec 31, 2025,' it said.

Edelteq forms JV with Halo Tech to develop AI-driven inspection machines
Edelteq forms JV with Halo Tech to develop AI-driven inspection machines

Malaysian Reserve

time03-06-2025

  • Business
  • Malaysian Reserve

Edelteq forms JV with Halo Tech to develop AI-driven inspection machines

EDELTEQ Holdings Bhd has entered into a joint venture with Penang-based Halo Technologies Sdn Bhd to develop and commercialise automated optical inspection (AOI) machines, targeting applications in the semiconductor and electronics manufacturing sectors. The agreement, signed today between Edelteq's wholly owned subsidiary Edelteq Ventures Sdn Bhd (EVSB) and Halo Technologies, will see the formation of a 50:50 joint venture company called Halovision System Sdn Bhd. With an initial paid-up capital of RM50,000, Halovision will focus on the research and development, manufacturing, and commercialisation of AOI systems, specifically for substrate panel (Raptor series) and semiconductor wafer-level (i-Falke series) inspection. 'This strategic partnership combines Edelteq's engineering and automation capabilities with Halo's artificial intelligence-based inspection technologies to tap into the growing demand for smart manufacturing solutions,' the company said in a filing with Bursa Malaysia. EVSB will fund its RM25,000 capital contribution via internally generated funds. Both parties have also agreed to grant exclusivity to the JV within the defined business scope and are barred from directly competing with it without written consent. Edelteq said the joint venture is aligned with its strategy to expand its high-tech product offerings and strengthen its presence in Industry 4.0. 'The JV is expected to enhance Edelteq's product portfolio, strengthen R&D capabilities, broaden its customer base, and provide new income streams over the long term,' it said. The collaboration is not expected to have any material effect on Edelteq's earnings or net assets for the financial year ending Dec 31, 2025. — TMR

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