Dah lama tak gerak saham ni..kenapa ya?

ada consolidate dan rights issue
 

Its ROE has been improving post Covid. But I have not seen similar trend in its share price

This is a Bursa oil and gas company. You should not be surprised that in using relative valuation to determine whether the counter is cheap or expansive, many compare it with other Bursa oil and gas companies.

The irony is that the 2013 to 2022 correlation between Icon’s revenue and the median revenue of the Bursa oil and gas companies is negative 4%. It does not behave like the sector.

This is one reason why I avoid using relative valuation. The results are easily biased by the peers chosen. Ideally the peers should be the ones with similar cash flow and risk profile. But how many people check for this when selecting the peers?

Of course, in the case of Icon it is academic as it incurred losses for much of the past 9 years. Even its PAT over the past few years were due to asset sale and one-off items.

I estimate that its after-tax operating return [NOPAT / (Equity + Debt)] over the past 9 years ranged from 1.2 % to 6.4 % with an average of 3.0%. I assumed 24% nominal tax rate.

Not exactly an exciting number for shareholders since you could get better returns at lower risk by keeping your money with the EPF. There are better Bursa oil and gas companies to consider.