Malaysia Equity FVMR Snapshot: ‘Malaysia in Your Hand—Every Week’
Watch the video with Andrew Stotz or read about how to use the Malaysia Equity FMVR Snapshot below.
Malaysia in Your Hand—Every Week
The Malaysia Equity FVMR Snapshot uses the same format we first introduced with our Global Equity FVMR Snapshot.
When you sign up, every week you will receive our Malaysia Equity FVMR Snapshot, you will always be up to date. You’re going to know all your numbers, as this one-page document covers Fundamentals, Valuation, Momentum, and Risk—our FVMR framework.
You’re going to be professional as this is the same information used by institutional investors and fund managers.
And here’s the best part: You do nothing because after signing up, you’re going to receive a one-page PDF every Monday with updated numbers.
Fundamentals
The Malaysia Equity FVMR Snapshot starts with fundamentals; and, in this case, we can look at Malaysia versus the world.
The ROE of Malaysia is less than the world by almost two percentage points at 10.5%. So it’s a relatively low ROE country right now. We do have high returns in the telecom sector though.
Now, if we look at dividend payout ratio, we see that the Malaysian companies actually pay out more dividends than many of the other companies in the region and also in the world; and some industries such as telecoms are paying out almost a hundred percent of their profits as dividends.
Valuation
Now, let’s look at valuation.
What we can see here is that the health care sector is extremely expensive and we can see that financials are relatively cheap within a Malaysian context. Malaysia is a bit expensive on P/E at 15x versus the world at 13.9x.
Price-to-book, though, is slightly less than the rest of the world at 1.6x. Some industries are super cheap such as the energy sector, and an expensive one is the telecom sector.
Momentum
We continue on with momentum, what we can see are earnings and price momentum.
Let’s start with earnings and we can see that the 2016 expectations for Malaysia and the World are almost equal, about 3%. But we can see that, obviously, the energy sector has been hurt because of energy prices.
What we can see also is that the consumer staples and the health care sectors are doing relatively well. In fact, the high P/E that you’re paying for the health care sector is somewhat justified by the fast EPS growth that’s there.
Price momentum is how much the share prices have fallen or risen. In the world, share prices are down by about 8% over the last year; in Malaysia, about 6%. The consumer discretionary sector has done okay over the last couple of weeks. And then, telecoms is actually performing quite poorly right now.
Risk
Now, we look at risk and risk is about gearing—meaning, net debt-to-equity—and about price risk.
We can see that the energy sector is highly geared in Malaysia and the materials sector has very low gearing.
The volatility in price for Malaysia over the last three months has been 8% versus 13% for the past year. Generally, the volatility of the Malaysia market has been low over many, many years. The energy sector is where the most volatility is right now. And then, we have a small amount of volatility over the past one year in the financial sector.
Malaysia in Your Hand
With our Malaysia Equity FVMR Snapshot, you’ll get a weekly update like the one below covering the Malaysian stock market.
You’re going to understand fundamentals, valuation, momentum, and risk, and the way we look at them.
After signing up, YOU will:
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Always be up to date: Every week you will receive the updated Malaysia Equity FVMR Snapshot
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Know all the numbers: One page covers Fundamentals, Valuation, Momentum, and Risk (FVMR)
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Be professional: Use the same information as institutional investors and fund managers
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Not have to do anything else to stay informed: After signing up you will receive a one-page PDF every Monday
The Malaysia Equity FVMR Snapshot is free for everyone signing up within a limited time period. Sign up now to not miss out on getting it for free.
NOTE: You’ll have to fill in the form below to receive the Malaysia Equity FVMR Snapshot even if you’re already subscribing to other Equity FVMR Snapshots and/or is a founding member that get our newsletter.
DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.