Source: PBA Annual Reports
* The change of the Penang State Government occured on 8 March 2008.
# The water supply industry in Malaysia is regulated by the Malaysian Federal Government. All licensed water operators, including PBAPP, have to comply with Federal laws, vis-à-vis the Water Services Industry Act 2006 (WSIA 2006 - Act 655) and the SPAN Act 2006 (Act 654). Federal Government is the authority that approves water tariff reviews in Malaysia.
The company proudly showcases its historical revenue performance in its annual reports — and rightly so.
When Apex Healthcare went public, its IPO price was RM1.50 per share. Over the years, it has undertaken several bonus issue exercises:
2003: 1 for 2
2010: 1 for 4
2014: 1 for 4
2019: 3 for 1
2023:1 for 2
If you had subscribed to 1 AHEALTH share at IPO, that single share would have multiplied into 14.0265 shares today. At the takeover price of RM2.64 per share, your RM1.50 investment would now be worth RM37.13, translating into an astonishing total return of 2,375% — or a CAGR of about 13.41% over roughly 25.5 years. And that’s not even counting the regular and special dividends paid throughout the years!
Sadly, there is now an attempt to delist this remarkable company from the KLSE — a move that would remove one of Bursa Malaysia’s rare examples of long-term, consistent growth.
Another company with a similarly impeccable track record of uninterrupted revenue growth is QL Resources Berhad.
Do you know of any others?
This situation is very rare.
As an asset-light company, ADB is facing a what can be called a "good problem" - having too much cash in hand.
Under Paragraph 8.03(1) of the Bursa Listing Requirements, a listed company whose consolidated assets consist of 70% or more in cash, short term investments, or a combination of both, must immediately notify the Exchange in writing. The Exchange will then determine whether the company should be classified as a Cash Company.
A Cash Company is required to place at least 90% of its cash and short-dated securities with a financial institution (trust company, bank or investment bank) under custodian arrangement. Withdrawals from this account are only permitted for the acquisition of a new core business or for distribution to shareholders.
A Cash Company must regularise its condition; failing which, it may be suspended and/or delisted by the Exchange.
It appears to ADB is trynig to avoid crossing into Cash Company status.
|
Financial Year |
Amount |
Payment Date |
|
FY23 |
2 sen/ share |
29 Sep 2023 |
|
FY24 |
2 sen/ share |
27 Sep 2024 |
|
FY24 |
2 sen/ share |
26 Mar 2025 |
|
FY25 |
2 sen/ share |
26 Jun 2025 |
|
FY25 |
2 sen/ share |
26 Sep 2025 |
With zero borrowings and a highly asset-light structure, unless ADB undertakes a meaningful asset acquisition, it is likely to continue rewarding shareholders with generous dividends going forward.
Available for early access on Merdeka Day, 16 September 2025.
Be among the first to experience it!
ALPHA posted its highest-ever quarterly performance in 4QFY25, with revenue reaching RM50.0m and PATAMI improving to RM16.1m.
Despite the strong financial showing, the share
price remains near its bottom. At yesterday’s closing of 29.5sen, it is only 11.3%
above its all-time low of 26.5sen.
Budget 2025 was an unusual budget for the construction industry. Despite its record-breaking size of RM421 billion, it makes no explicit mention of mega infrastructure projects—a stark contrast to previous years..
Just yesterday, Transport Minister Anthony Loke approved the final railway scheme for the MRT3 Circle Line —a crucial green light that paves the way for the next major urban rail development.
*Completed the acquisition of 10 companies and their respective subsidiaries from YTL Cement Berhad on 21 September 2021
1. Healthy Cash Flow & Lower Debt
Net debt continues to fall, supported by strong operating cash flow.
RAM ratings had upgraded MCEMENT's sukuk from AA3 to AA1 on 13 February 2025.
2. Rising Revenue
A steady uptrend in sales signals resilient demand and effective operations.
3. Lower Financing Costs
Borrowings are on a downtrend, reducing finance costs. Further savings are expected with the interest rate cut earlier this month.
4. Improved Tax Efficiency
While FY23 and FY24 saw elevated effective tax rates due to non-deductible interest expenses, 9MFY25 has seen this rate dip below 30%. It remains to be seen—pending the Annual Report 2025—if the company has strategically shifted borrowings to operating subsidiaries to optimise taxes.
5. Stronger Earnings (PATAMI)
Profit after tax and minority interest continues to rise, driven by both topline growth and margin expansion.
6. Rising Dividends
Increasing dividends. The company declared 5 sen per share for 9MFY25 (9MFY24: 4sen/share).
7. Valuation
Trading at around 11x TTM PE with improving fundamentals.
8. Robust Free Cash Flow
Ample cash generation supports both debt reduction and rising dividend payouts.
9. Market Dominance
MCEMENT holds approximately two-thirds of Peninsular Malaysia’s cement market share—an unrivaled position.
10. Resilient Demand
|
FY2024 |
FY2024 (i) |
FY2024 (ii) |
|
|
Revenue |
2,404,020.00 |
2,596,341.60 |
2,577,109.44 |
|
Cost of sales |
(1,768,510.00) |
(1,768,510.00) |
(1,768,510.00) |
|
GP |
635,510.00 |
827,831.60 |
808,599.44 |
|
Other income/ expenses |
50,796.00 |
50,796.00 |
50,796.00 |
|
Selling &
distribution expenses |
(351,040.00) |
(351,040.00) |
(351,040.00) |
|
Administration expenses |
(71,191.00) |
(71,191.00) |
(71,191.00) |
|
Profit from operations |
264,075.00 |
456,396.60 |
437,164.44 |
|
Finance income |
2,504.00 |
2,504.00 |
2,504.00 |
|
Finance cost |
(24,062.00) |
(24,062.00) |
(24,062.00) |
|
Share of profit in
associate |
(813.00) |
(813.00) |
(813.00) |
|
PBT |
241,704.00 |
434,025.60 |
414,793.44 |
|
Taxation |
(64,424.00) |
(115,685.57) |
(110,559.41) |
|
PAT/ PATAMI |
177,280.00 |
318,340.03 |
304,234.03 |
|
Number of shares |
5,747,000,000.00 |
||
|
EPS (sen) |
3.08 |
5.54 |
5.29 |
|
Historical PE based on
IPO price of RM1.13 |
36.63 |
20.40 |
21.35 |
The recent RM0.20 price hike in April 2025 is expected to push
gross margins above 30%. Is this margin too high?
For comparison, MRDIY’s gross margins were 45.36% in 2023 and 45.8% in 2024.
What about forward PE ratio based on FY26 estimated earnings?
Assuming a low double-digit revenue growth in FY25 and FY26, and factoring in
a) The minimum wage adjustment starting 1 February 2025;
b) A newly introduced 2% EPF contribution for foreign workers;
c) Electricity tariff adjustment in 2H25;
d) Interest saving; and
e) The absence of wages subsidy (FY24:RM5.367m),
… At the IPO price of RM1.13, could ECOSHOP possibly be valued at approximately 20x FY26 (1 June 2025 – 31 May 2026) earnings, or lower?
Other factors to consider include the Renminbi-to-Ringgit exchange rate and freight rates.
Is ECOSHOP still expensive?
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Additional information:
In the FYE 31 May 2024, it rolled out in phases, a new pricing strategy for our Eco-Plus format stores to streamline pricing across various product categories by implementing a fixed price tiering for each product category. It refined such pricing strategy for our Eco-Plus stores starting December 2024 to simplify the pricing structure. Currently, it offers a combination of products in its Eco-Plus stores at a fixed price of either RM2.60, RM6.00 or RM10.00 in Peninsular Malaysia, and either RM2.80, RM6.60 or RM11.00 in East Malaysia.
QL Resources Berhad (QL) needs no introduction within the investment community. It is a darling stock among investors and celebrated its 20th anniversary as a public listed company in 2020. Over the past 2 decades, QL has achieved remarkable growth, with a compounded annual growth rate (CAGR) of 14.6% in revenue and 12.3% in profit before tax (PBT). Its loyal shareholders have enjoyed an impressive return on investment of 26.1% CAGR over this period.
Meanwhile,
DXN Holdings Berhad (DXN), founded in 1993, recently reported a pretax profit
of RM479m and a PATAMI (Profit After Tax and Minority Interests) of RM311m in
its FY24, which ended in February 2024—31 years after its establishment.
For
context, during a similar 31-year period following its inception in 1987, QL
recorded a pretax profit of RM255m and a PATAMI of RM206m in FY18.
DXN
also boasts a strong net cash position, unlike QL, which operates in a net debt
position. Additionally, DXN has a dividend policy of distributing at least 50%
of its net profit to shareholders, offering a more attractive dividend yield
compared to QL.
Separately,
did you know that DXN and Nestlé Malaysia are currently generating similar
profits? However, Nestlé’s market capitalisation stands at
RM21,297m—approximately 8.2x larger than DXN’s market cap of RM2,592m.
While
it's not an exact comparison, the disparity is striking. Adding to this, DXN
has a net cash position of RM578m, whereas Nestlé is in a net debt position of
RM921m. Furthermore, DXN offers a compelling dividend yield of 7.1%, compared
to Nestlé’s lower dividend yield of 2.6%.
Despite
its impressive three-decade track record, favorable growth outlook (as stated
in the company’s financial reports), and a solid balance sheet, DXN is
currently trading at a trailing 12-month price-to-earnings ratio of just 8x.
This valuation comes alongside a compelling dividend yield of 7.1%.
Potential
factors influencing DXN’s valuation:
a) Stigma around delisted and relisted stocks: Most delisted and subsequently relisted stocks on Bursa Securities trade below their relisting IPO price. However, unlike most of these companies, DXN continues to achieve increasing top-line and bottom-line growth after its relisting.
b) Private
jet leasing from a related party. Financial market columnist Pankaj Kumar has
shared his views on this related-party transaction, which lead me to believe it
is fair and not as negative as the market perceives (https://www.thestar.com.my/business/insight/2024/11/23/getting-related-party-transactions-right)
c) Multi-level marketing (MLM) business model: It is worth noting that DXN manufactures over 70% of its SKUs in-house. MLM is primarily a distribution channel for its products. In fact, this MLM distribution model has significantly driven its business growth as members continue to multiply.
d) Frontier market risks: Operating in developing
markets presents significant growth opportunities but also exposes DXN to
geopolitical and economic risks.
Beyond
stock performance, DXN’s achievements under the leadership of Datuk Lim Siow
Jin are noteworthy. The company has grown into Malaysia’s largest MLM firm with
a global presence, generating over RM300m in annual net profit. This is a
remarkable accomplishment that Malaysians can take pride in.
Moreover,
DXN has created jobs, contributed to government revenues, and supported
Malaysia’s tourism industry by attracting large numbers of overseas members to Malaysia.
The
critical questions remain: Will DXN continue its growth trajectory? And will
the market eventually re-rate the stock? Only time will tell.
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