Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
7-Eleven Malaysia Holdings Berhad is an investment holding entity with its headquarters in Kuala Lumpur, Malaysia, established in 1927. Formerly known as Seven Convenience Berhad, its core activities involve the ownership, management, and franchising of 7-Eleven convenience stores throughout Malaysia. The company operates primarily through its Convenience Stores, Pharmaceutical, and "Others" divisions. Its convenience outlets offer a broad assortment of groceries and food products, including freshly prepared hot meals and beverages, with the company also manufacturing its own ready-to-eat dishes. Beyond physical goods, these stores serve as comprehensive service centers, facilitating mobile phone and online game reloads, various bill payments, international and domestic direct dialing (IDD/STD) services, Touch 'n Go top-ups, Razer Pay, Cash, and Alipay transactions, gift card sales, photocopying and fax services, ATM access, and local community bulletin boards. Furthermore, 7-Eleven Malaysia Holdings participates in real estate investment and the supply of foodstuffs. Its wider operations include providing management and internet services, overseeing central warehousing and logistics, and distributing pharmaceutical, healthcare, and personal care items. The company also manages a network of pharmacies, operating under the Caring, Pill House, and Wellings brand names.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB
Target Price
The average target price of 5250.KL is 1.2 and suggests 42% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to d