Latest news with #RM3.92
The Sun
02-07-2025
- Business
- The Sun
Johor Corp posts strong revenue, earnings growth
KUALA LUMPUR: Johor Corporation (JCorp) and its group of companies announced consolidated financial results for the financial year ended Dec 31, 2024 (FY24), recording revenue of RM6.96 billion, a 12% increase from RM6.2 billion in FY23. In a statement yesterday, JCorp said the performance reflects continued momentum under the JCorp 3.0 Reinvention Plan, which is reshaping the organisation into an impact-led, value-driven Investment Holding Corporation. FY24 saw stronger contributions across key verticals, supported by focused capital allocation, portfolio optimisation, and operating model improvements. Profit before tax rose to RM718 million – exceeding the FY23 results by 19%. This was supported by contributions particularly from the agribusiness and wellness and healthcare divisions, value unlocking through strategic asset disposals, and tighter cost control across the group. KPJ Healthcare Bhd (KPJ) recorded a revenue of RM3.92 billion in FY24, marking a 15% year-on-year growth, driven by continued patient trust in our 'Care for Life' patient-centric approach. Net profit rose to RM407.2 million, underpinned by improved margins, enhanced operational efficiency and prudent financial management. The group's agribusiness vertical, led by Kulim (Malaysia) Bhd (Kulim) through its core investee company JPG, recorded RM1.61 billion in revenue – an 18% increase from the previous year. Plantation operations contributed 95% of segment revenue, while the remaining came from the agrofood division. Net profit from continuing operations stood at RM242.7 million, supported by improved commodity pricing and sustained cost efficiency. The group also recognised a one-off loss of RM129 million from the divestment of its discontinued operation segment, resulting in total net profit of RM113.5 million for FY24. JLand Group achieved a remarkable RM1.3 billion in revenue for the year 2024 – a strong 9% increase compared to the year 2023. This growth was primarily driven by contributions from its property development and integrated community solutions segments. Overall, the group delivered a commendable performance, recording RM205.81 million in profit before tax and RM157.8 million in net profit. These results reflect the group's solid operational execution and effective cost management, underscoring its resilience and strong fundamentals. JLand Group's financial results are on a proforma basis, pending the completion of JLand Group's internal restructuring. QSR Brands (M) Holdings Bhd, operator of KFC and Pizza Hut across Malaysia and the region, recorded RM3.53 billion in total revenue – RM3.23 billion from continuing operations. At the holding level, JCorp recorded RM759 million in revenue and RM634 million in net profit. This included RM425.82 million in dividend income – primarily from Kulim (RM356.42 million) and KPJ (RM64.95 million) and RM223.47 million in proceeds from industrial land sales. The results underscore stronger asset performance and deliberate capital recovery actions taken during the year. As of Dec 31, 2024, JCorp's total Assets Under Management stood at RM24.5 billion. JCorp president and CEO Datuk Syed Mohamed Syed Ibrahim said as they continue to play their role as responsible stewards, their focus remains on building institutions that drive long-term impact. JCorp said it enters FY25 with renewed emphasis on creating value and enabling sustainable communities in line with its commitment to Membina & Membela. This entails scaling AI and digital integration, advancing strategic sectors such as agribusiness and healthcare, and deepening collaboration across the public and private ecosystem. A key priority is to strengthen executional excellence in order to deliver long-term value while reimagining the next phase of growth for Johor and the nation.
New Straits Times
02-07-2025
- Business
- New Straits Times
JCorp posts nearly RM7bil revenue in FY24, eyes stronger value creation
KUALA LUMPUR: Johor Corporation (JCorp), which owns a 45 per cent stake in KPJ Healthcare Bhd, reported a revenue of RM6.96 billion for the financial year ended Dec 31, 2024 (FY24), a 12 per cent increase from RM6.20 billion in FY23. The Johor state investment arm attributed the improved performance to continued progress under its JCorp 3.0 Reinvention Plan, which aims to transform the organisation into a value-focused investment holding company. JCorp said stronger contributions across its key business segments were supported by more targeted capital allocation, portfolio optimisation, and operational improvements. Pre-tax profit rose 19 per cent to RM718 million, bolstered by contributions from the agribusiness and wellness and healthcare divisions, strategic asset disposals, and tighter cost control. In the healthcare segment, KPJ posted revenue of RM3.92 billion in FY24, up 15 per cent year-on-year, driven by sustained demand for its patient-focused services. During the year, KPJ also unveiled a refreshed brand identity and launched Malaysia's first Academic Health System, integrating clinical care, education, and research. The agribusiness division, led by Kulim (Malaysia) Bhd through its core investee company JPG, generated RM1.61 billion in revenue, an 18 per cent increase from the previous year. Plantation operations made up 95 per cent of the total, with the remainder from the agrofood segment. JLand Group, the real estate and infrastructure arm, recorded RM1.30 billion in revenue, up nine per cent, driven mainly by growth in property development and integrated community solutions. Meanwhile, QSR Brands (M) Holdings Bhd, which operates KFC and Pizza Hut in Malaysia and the region, reported total revenue of RM3.53 billion, including RM3.23 billion from continuing operations. As at Dec 31, 2024, JCorp's total assets under management stood at RM24.50 billion. JCorp president and chief executive Datuk Syed Mohamed Syed Ibrahim said FY24 marked a shift in how the group creates value as an investment institution. "We realigned our portfolio, strengthened capital discipline and allowed our investee companies to lead with focus, from JPG's listing to KPJ's rebranding and healthcare initiatives. "Our goal remains to build institutions that deliver long-term impact. Every decision, partnership and investment must contribute to economic resilience and create lasting value for Johor and for Malaysia," he said. Looking ahead, JCorp said it will enter FY25 with a renewed focus on value creation and supporting sustainable communities, in line with its commitment to Membina and Membela. This includes accelerating the use of artificial intelligence and digital tools, strengthening sectors such as agribusiness and healthcare, and deepening collaboration between the public and private sectors.
Yahoo
13-06-2025
- Business
- Yahoo
Is SAM Engineering & Equipment (M) Berhad (KLSE:SAM) Expensive For A Reason? A Look At Its Intrinsic Value
Using the 2 Stage Free Cash Flow to Equity, SAM Engineering & Equipment (M) Berhad fair value estimate is RM2.92 SAM Engineering & Equipment (M) Berhad is estimated to be 34% overvalued based on current share price of RM3.92 Our fair value estimate is 28% lower than SAM Engineering & Equipment (M) Berhad's analyst price target of RM4.04 Today we will run through one way of estimating the intrinsic value of SAM Engineering & Equipment (M) Berhad (KLSE:SAM) by taking the expected future cash flows and discounting them to their present value. This will be done using the Discounted Cash Flow (DCF) model. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. 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 are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. 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. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (MYR, Millions) RM143.2m RM8.75m RM41.9m RM87.6m RM112.2m RM135.5m RM156.7m RM175.6m RM192.3m RM207.2m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Analyst x2 Est @ 28.11% Est @ 20.77% Est @ 15.63% Est @ 12.03% Est @ 9.51% Est @ 7.75% Present Value (MYR, Millions) Discounted @ 10% RM130 RM7.2 RM31.4 RM59.7 RM69.5 RM76.2 RM80.1 RM81.5 RM81.1 RM79.4 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = RM696m 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. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 3.6%. We discount the terminal cash flows to today's value at a cost of equity of 10%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = RM207m× (1 + 3.6%) ÷ (10%– 3.6%) = RM3.3b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= RM3.3b÷ ( 1 + 10%)10= RM1.3b 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 RM2.0b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of RM3.9, the company appears potentially overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. We would point out that 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 SAM Engineering & Equipment (M) 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 10%, which is based on a levered beta of 1.084. 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. View our latest analysis for SAM Engineering & Equipment (M) 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 Machinery market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the Malaysian market. Threat Revenue is forecast to grow slower than 20% per year. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. 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. Why is the intrinsic value lower than the current share price? For SAM Engineering & Equipment (M) Berhad, we've compiled three relevant aspects you should explore: Financial Health: Does SAM have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does SAM'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 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! 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.
