Efficiency, Valuation and Gearing of Malaysia listed Real Estate Companies Efficiency, Valuation and Gearing of Malaysia listed Real Estate Companies Comparison of Malaysia Real Estate Companies in term of Efficiency (Return on Asset), Valuation ( Price to Book Ratio) and Gearing (Debt to Equity Ratio). Measurement of the relationship between efficiency and gearing vs the market valuation. This serves as a guideline to pick a good company from the real estate industry.
Comparison of utility companies listed on Malaysia, Singapore and Indonesia Comparison of utility companies listed on Malaysia, Singapore and Indonesia A comparison of regional utility companies on their Return of Equity, Net Profit Margin and Dividend Yield. Companies that are included in this comparison are listed on Bursa, SGX and IDX
Sales Performance of Automotive Brand in Malaysia Sales Performance of Automotive Brand in Malaysia Comparison of the year 2018 and the year 2019 for car sales of different brand in Malaysia for the first 8 months. The two national brands, Proton and Perodua has bucked the downtrend of the automotive industry and recorded a higher sales number. Good product mix and price have helped them to stay afloat.
Johor Bahru serviced apartment incoming supply Johor Bahru serviced apartment incoming supply According to the National Property Information Centre (NAPIC) data, the incoming supply of Johor Bahru and Kuala Lumpur serviced apartments. Turns out that supply of serviced apartments in Johor Bahru is 3 times the number of serviced apartments in Kuala Lumpur, the capital city of Malaysia and a city that is 5 times larger than Johor Bahru in terms of population.
Malaysia Serviced Apartment Overhang Situation Malaysia Serviced Apartment Overhang Situation According to the National Property Information Centre (NAPIC) data, The price range of Malaysia serviced apartment that is facing the most severe oversupply situation. Johor is facing the most serious problem in serviced apartment overhang followed by Selangor and Kuala Lumpur. Most of the serviced apartment overhang in Johor Bahru and Kuala Lumpur are priced above RM 1 million.
Malaysia condominium overhang situation Malaysia condominium overhang situation According to the National Property Information Centre (NAPIC) data, the price range of condominium that is facing the most severe oversupply situation in Kuala Lumpur is those that are priced above RM 1 million. Condominium that is priced above RM 1 million is usually targetted at foreigners as local buyers with this budget still prefer landed property.
Malaysia Print Media Industry (1) Malaysia Print Media Industry (1) According to the Audit Bureau of Circulation(ABC) of Malaysia, all major newspapers in Malaysia are facing a decline in readership over the past 10 years. The rise of social media and the popularisation of the smartphone are the factors that led to this trend. Despite the declining landscape, there is a company that is bucking the trend.
Cigarette industry sales are on a perpetual down slide Cigarette industry sales are on a perpetual down slide The 3 major tobacco companies in Malaysia, British America Tobacco, Japan Tobacco International and Philip Morris are facing a decline in sales. Increasing government tax, declining adult consumption of traditional tobacco products and the flood of the illicit market for cigarettes have damaged the industry's growth potential.
Non performing Loan of Malaysia property loan Non performing Loan of Malaysia property loan From the Bank Negara Malaysia (BNM) statistics, we can see that the non-performing loan (NPL) of residential property has remained resilient and kept under control but the NPL for non-residential property has been increasing at a steady pace since the year 2014. This figures may also be the reason why banks are more cautious on disbursing the loan to the non-residential property segment.
Residential Property price chart Residential Property price chart Using the data from the National Property Information Centre (NAPIC), the residential property prices in Malaysia has risen parabolically since the year 2009. The decreasing interest rate, which has made monthly instalment more affordable accompanied with the excess liquidity in the market, owning properties and generate passive income from it to retire comfortably has become the dream of everyone.
Malaysia Sugar Refinery Industry Malaysia Sugar Refinery Industry The refined sugar industry in Malaysia is dominated by 2 players, Central Sugar Refineries and MSM Malaysia Bhd. With an annual capacity of approximately 3 million tonnes, the supply has outstripped the local demand, causing a margin compression for these two companies. In July 2019, the government has removed the restriction of sugar import, causing more woes for these two players.
Increasing train intervals to save cost is useless Increasing train intervals to save cost is useless Metro, which forms the backbone of a city public transport infrastructure, is the most effective way to reduce city congestion. However, most governments have been applying an accounting method to measure the benefits of the metro instead of using the economical method. Even if a metro system is loss-making, the externality it has brought to the city outweighs the cost.
Misconception of salary Misconception of salary The four factors of production are labour, capital, land and entrepreneurship. If you are wondering why your salary is low, a high possibility is you are living in an unproductive society. Also, a weakening currency erodes your purchasing power, making you being in an unfair situation among the mix of Factors of Production.
Loan approval rate for Malaysia sector Loan approval rate for Malaysia sector This is the loan approval rate obtained from Bank Negara Malaysia (BNM) monthly publication. The loan approval rate is calculated by using loan disbursed divided by loan applied. The trend in the loan approval rate provides an important indicator to understand the banks' intention in which industry in the economy should receive more liquidity than others.
Comparison of casino operators Comparison of casino operators The casino operators in Asia often deliver a fat profit margin and paying out a generous dividend to its shareholders. Accompanied by the growth prospects, casino operators are often the darling of investors. Being in a highly regulated industry, casino license holders deserve a high valuation. Here is a comparison of the casino operators in Asia.
Future pathway of regional mobile telecommunication operator Future pathway of regional mobile telecommunication operator The rise of free communication apps has decreased APRU (Average Revenue per User)for most telecommunication operators. Besides, the 5G wave is also going to force the telecommunication operator to allocate a huge amount of money for capital expenditure in the next few years. These situations had forced the regional mobile telecommunication operator to merge either horizontally or vertically.
Malaysia's Industrial Production Index Malaysia's Industrial Production Index Industrial Production Index (IPI) is an indicator published by the Department of Statistics Malaysia (DOSM) monthly. It is an indicator used to measure the production level of different industries in Malaysia. It served as a leading indicator to gauge the economy as a rising IPI indicate that the producers are more confident in their future sales and started to produce more.
Malaysian Banks' Cost Efficiency Malaysian Banks' Cost Efficiency Cost to income ratio (CIR) is an important metric for a bank as it represents the cost for every single dollar earned. The major cost for a bank is its interest expense and labour cost. With the low-interest-rate environment, labour cost has become the major focus of the bank's management. Replacing bank tellers with machines and encouraging online transactions had helped banks to keep their cost low.
Malaysia Banks' Non-performing Loans Trends Malaysia Banks' Non-performing Loans Trends Non-Performing Loan (NPL) is the utmost important indicator of a bank. A ballooning NPL tells a lot on the bank. Not only the asset quality of the bank is deteriorating, but it is also a sign showing that the bank had been reckless in disbursing the loan to its borrower. NPL usually rise quickly when the unemployment rate of the country has been increasing quickly.
S.E.A. Banks Efficiency vs Valuation S.E.A. Banks Efficiency vs Valuation The more efficient a company is, the higher the valuation it deserves. In the banking industry, Return on Equity (ROE) is used to determine the efficiency while price to book ratio (P/B Ratio) is used to determine its valuation. There is a positive correlation between the banks' ROE and R/B Ratio.
SEA Major Poultry Players SEA Major Poultry Players The poultry industry has been providing the cheapest source of protein for most people living in South East Asia. Not only the price is more affordable for the mass, but it also produces lesser greenhouse gases for every kilogram compared to other sources of meat due to a lower feed conversion ratio. The pig swine is creating a substitution effect for poultry meat and this had been reflected in the revenue of poultry companies.
Key Metrics of Malaysia Telecommunication Players Key Metrics of Malaysia Telecommunication Players The major players in Malaysia Mobile Telecommunication Industry are Digi Bhd (Subsidiary of Norway based Telenor), Maxis Bhd and Celcom (Subsidiary of Axiata). Here is the size of the number of subscribers, the Average Revenue per User (ARPU)and the monthly data usage of each players. For all these players, postpaid customers proved to be a more profitable segment than prepaid customers.
Overview of Malaysia Major Automation Equipment Providers Overview of Malaysia Major Automation Equipment Providers The increasing labour cost in Malaysia due to the government effort to reduce reliance on foreign labour and the ongoing Industrial Revolution 4.0 have created a huge demand for automation equipment. Automation is also a crucial factor for Malaysia companies to climb up the manufacturing value chain. is an unstoppable trend. The major automation equipment manufacturers in Malaysia are Vitrox Bhd and Pentamaster Bhd.
MGS Yield Spread MGS Yield Spread Interest rate affects us in every aspect of our life. We look at the interest rate when we are applying for a home loan or placing our fixed deposit. The interest rate of Malaysia is largely determined by the interest rate of our government bond, Malaysia Government Securities (MGS). The spread of the MGS is a very strong tool to forecast the economy and it has never failed to predict a recession.
Inverted Yield Curve Inverted Yield Curve Interest rate affects us in every aspect of our life. We look at the interest rate when we are applying for a home loan or placing our fixed deposit. The interest rate of Malaysia is largely determined by the interest rate of our government bond, Malaysia Government Securities (MGS). The spread of the MGS is a very strong tool to forecast the economy and it has never failed to predict a recession. When the short term interest rate is higher than a long term interest rate, a recession is imminent.
Township that will succeed Township that will succeed A township provides affordable landed property to home buyers who seek to have a piece of land in front of their home, providing spaces for children and also privacy. However, townships are usually located several kilometres outside of the city centre due to the availability and cost of land. Not every township development will succeed like Bandar Utama or Desa Park City. Here is a checklist for investors or buyers to ponder whether the township will succeed or not.
Merger and acquisition that creates value Merger and acquisition that creates value Companies may acquire someone to eliminate the industry competition or to complement with its current products and services. However, some companies acquire another company just to grow bigger and this is also known as empire building. Here is a checklist that helps you to identify whether a merger & acquisition is creating value for the company or it is destroying value.