MAA Group Berhad keeps losing its value in the share market. They have reached one year’s lowest point where their value remains at 0.56 MYR.
MAA Group Bhd is known as an investment company, that is constantly losing the value of its shares in the stock market. They have dropped from the year high of 0.94 MYR in April 2021 to 0.56 MYR. There are many key factors in this downfall. But one major factor is investing in the KNM group despite knowing all the negative reports and scandals.
In September 2021, MAA Group Bhd become a major shareholder of KNM Group Bhd, When it acquire 7.01% more shares. According to them, it was a good deal as they have bought 233 million shares for RM 52.89 million. At the time of purchase, the KNM share was trading at 53 sen but MAA Group Bhd get it at 22.7 sen per share.
It was expected that MAA Group Bhd stocks will perform better in the share market but these steps were not enough. The MAA share price was trading at 0.96 MYR in April 2021. This was also a jump from the previous 0.86 value. It was expected that the share will rise but it continues to fall. At one stage it raised again to 0.92 MYR but couldn’t survive.
There are similarities between MAA and KNM Group Bhd. MAA is involved in several businesses including Insurance, education services, SME debt factoring, Lease, Hire purchase, and credit facilities. It also covers Consultancy and advisory services, Hotel management, F&B, Logistics and Dispatch, Short term property accommodation operation, Property Design, Renovation, and Management. Meanwhile, KNM Group Bhd is mainly involved in Manufacturing, Project Management, Engineering, Construction for renewable energy, Utilities, Power, Petrochemical industries, and refining.
If we talk about Price and Volume factors their main points are going in a negative way. The 13-week price return is -4.17 MYR, the 26-week price return is -18.44 MYR and the 52-week return is -35.39 MYR. The year-to-date price return is recorded as -11.54 MYR. The relative price to S&P500 for 4 weeks is -1.74 MYR, the Relative price to S&P500 for 13 weeks is -6.80 MYR, Relative price to S&P500 for 26 weeks is recorded as -20.32 MYR. The Relative price to S&P500 for YTD is -12.43 MYR and the Relative price to S&P500 for 52 weeks is recorded as -34.26 MYR.
As per the per share data stats, the EPS excl. extra items (Annual) is 0.15 MYR, EPS excl. extra item (Trailing Twelve Months) is 0.07. The Tangible Book Value (Per Share Annual) is 1.90 MYR, Tangible Book Value (Per Share Quarterly) is 1.94 MYR. The Free Cash Flow (Per Share Trailing Twelve Months) is recorded at -0.39 MYR.
If we analyze the Financial strength there are some positives. The Long Term Debt/Equity (Quarterly) is 6.39 MYR and the Total Debt/Total Equity (Quarterly) is 6.39 MYR. The Long term Debt/Equity (Annual) is 2.65 MYR and the Total Debt/Total Equity (Annual) is 2.65 MYR. The Free Cash Flow (Annual) is recorded as -47.60 and the free cash flow (Trailing Twelve Months) is also recorded as -103.63 MYR.
The valuation has positive stats but debit data is alarming. The P/E Excl. Extra Items (Annual) is 3.88 MYR, the P/E Excl. Extra Items (Trailing Twelve Months) are recorded as 8.70 MYR. The P/E Normalized (Annual) is 3.56 MYR and the Price To Sales (Annual) is 1.05 MYR. The Price To Sales (Trailing Twelve Months) is 1.20 MYR. Price To Cash Flow (Per Share Trailing Twelve Months) is 5.99 MYR. The P/E Excl. Extra Items High (Trailing Twelve Months) is recorded as 30.24 MYR, the P/E Excl. Extra Items Low (Trailing Twelve Months) is 2.85 MYR. The Net Debt (Interim) is -49.94 MYR and the Net Debt (Annual) is also recorded as -96.33 MYR.
MAA Group’s overall growth is on the negative side. The Revenue Growth (Quarterly YoY) is -47.31%, Revenue Growth Rate (5Y) is -18.17%. The EPS Growth (Quarterly YoY) is -65.17%, the EPS Growth (Trailing Twelve Months YoY) is also recorded at -55.94%. The Revenue Growth (Trailing Twelve Months YoY) is -11.92% and the Revenue Growth (Per Share 5Y) is -16.45%.
These are the key metrics that have affected the MAA group. The Price Relative To S&P500(52 weeks), the 52 Week Price Return, Free Cash Flow (Per Share Trailing Twelve Months), Free Cash Flow (Annual)(Financial strength), Free Cash Flow (Trailing Twelve Months), and Net Debt (Interim and Annual) are key reasons for the downfall of stock in share market.
