Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
Mudajaya Group Berhad functions as an investment holding company with primary operations in civil engineering and building construction across Malaysia and China. The group's activities are structured into five key divisions: Construction, Property, Power, Trading and Manufacturing, and Investment Holding and Other Services. In its construction arm, Mudajaya handles the design and execution of various civil engineering and building projects. It secures conventional construction contracts from governmental, quasi-governmental, and private entities, encompassing a broad spectrum of infrastructure, including highways, roads, bridges, power stations, commercial and residential buildings, marine facilities, dams, water supply networks, and drainage and sewerage systems. Beyond construction, the company engages in property development, creating both residential and commercial properties, and provides associated rental services. Its power segment focuses on energy sales, facility management, and the operation of a photovoltaic power plant, along with offering energy conversion and reuse solutions. The trading and manufacturing division is responsible for producing construction materials like ready-mixed concrete and precast concrete products, as well as distributing construction-related items such as tap fittings, sanitary wares, quarry products, PC strands, wire mesh, and steel structures. Additionally, Mudajaya offers property management services, engineering, procurement, and commissioning (EPC) expertise, participates in general engineering and property ventures, and acts as a special purpose vehicle for issuing medium-term notes. The company was founded in 2003 and is based in Petaling Jaya, Malaysia.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'expensive' on EV/EBITDA,