Mudajaya Group Bhd looks the most attractive among26 stocks in Malaysia's industrials sector tracked by at leastthree analysts, data from Thomson Reuters StarMine shows.
The company has a Relative Valuation (RV) model score of 96,the highest in the sector. The higher the score, the cheaper thestock. It also has high Value-Momentum (Val-Mo) and EarningsQuality (EQ) scores of 92 and 99 respectively. A near-perfectSmartholdings (SH) score of 99 suggests a potential increase ininstitutional ownership.
Mudajaya's net margin and free cash flow (FCF) for 2011exceed industry average by 12.3 percent and 8.8 percentrespectively. Its FCF for the six months ending June 2012, at229 million ringgit was an increase of over 20 times from a yearearlier. Its net income stayed stable at 60 million ringgitduring the same period.
Of the four analysts tracking the stock, three give it a"strong buy" or "buy" rating while one has a "hold".
The stock currently trades at 23 percent of its intrinsicvalue of 11.79 ringgit. It is up over 22 percent so far thisyear, while the broader index has gained 8.15 percentfor the same period, as of Thursday's close.
On the other end of the spectrum, Malaysian ResourcesCorporation is the most expensive stock in the sectorwith an RV score of 8.
The builder and developer reported a 57 percent increase insecond-quarter revenue at 559 million ringgit from a year agowhile net income remained flat at 60 million ringgit.
StarMine's Relative Valuation model combines six differentratios that measure a company's valuation and then ranks itcompared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile rankingof stocks and rates companies based on a combination of valueand momentum metrics.
The Earnings Quality model is a percentile (1-100) rankingof stocks based on sustainability of earnings, with 100representing the highest rank.
The StarMine SmartHoldings model is a global stock selectionmodel that ranks stocks based on the expected future increase,or decrease, in institutional ownership.
(Reporting By Reshma Apte; Editing by Gopakumar Warrier)
Keywords: MIDCAP MUDAJAYA/