FIGURE 1: UNITED MALACCA BERHAD LAST 5 YEARS SHARE PRICE TREND
**analysis based on 2019 annual report.
1. GENERAL INTRO: UNITED MALACCA is one of the main oil palm plantations in Malaysia.
2. NOTABLE POINTS:
a. In 2019 report, reported losses of -18.61 sen per share in
current financial year due to low crude palm oil prices and new adoption
of the Malaysian Financial Reporting Standards.
b. The Group has three mills with a mill total processing capacity of 80 MT/hour
3. IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE RANGE (million): ~207.3 million in 2019 annual report, this is a low revenue company.
b. SHARE PRICE: from 2015-2019, share price fluctuated from around RM5.00 to RM7.00
c. EARNING PER SHARE (EPS): earning per share in last 5 years fluctuated from -18.6 to 40.4sen
d. FUTURE POTENTIAL/PROSPECTS: share price may drop further if company continue to make losses.
e. CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 90.5 million, around 4% of total assets.
4. IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND YIELD: in 2019 financial year, UNITED MALACCA
declared a dividend payout of 8 sen per share to shareholders, despite
facing losses. The dividend yield amounts to 1.5%.
b. CONSISTENCY: consistent dividend payout, last five years
(2015-2019) dividends declared range between 8 to 23 sen per share,
whereby the dividend yield ranged from 1.5 to 3.7%.
c. DIVIDEND PAYOUT RATIO: in 2019 financial year, UNITED
MALACCA paid out -42.99% of its earnings to investors in the form of
dividend.
5. IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN ON EQUITY (ROE): in 2019 financial year, UNITED
MALACCA achieved a low return of shareholders’ equity, at 3%. The ROE in
last five years ranged from 1.6 to 4.8%.
b. COST-TO-INCOME RATIO: cost-to-income ratio is negative at about -517%, due to losses in the financial year.
6. OTHER INDICATORS:
a. CASH FLOW: cash flow is positive, around RM 46.8 million, equivalent to RM 0.22 per share
b. SUPPORT BY INSTITUTIONAL INVESTORS: this counter is not well
supported by institutional investors, there are only 20 institutional
investors at top 30 major shareholders list, including EPF (0.82%), OCBC
BANK LTD (14.11%), GREAT EASTERN LIFE ASSURANCE (13.44%), PROSPER PALM
OIL MILL SDN BHD (10.72%), insurance companies and investment funds.
http://louisesinvesting.blogspot.com/2019/12/comments-on-united-malacca-berhad-2593.html
