VCI Global Limited provides consulting services in Malaysia, China, Singapore, and the United States. It offers business strategy consultancy, including listing solutions, corporate finance, legal, investors relations, and boardroom strategies consultancy. The company also technology consultancy, including software solutions that comprise artificial intelligence, analytics, and robotics, as well as a range of blockchain technology solutions. It delivers its services to small-medium enterprises and government-linked agencies, as well as to publicly traded conglomerates across various industries. The company was founded in 2013 and is based in Kuala Lumpur, Malaysia.

Malaysia

VCI Global Limited

Financial Services

The company pays dividends on rare occasions. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 136ppts and its growth accelerated by 40ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is favourable. This generally signifies that a stock is fairly valued or marginally undervalued abd is becoming more 'expensive', suggesting a short-term spike in confidence by the market at large.

The company has reported strong EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 36.6% in the last 12 months, a decline from 36.7% in FY22. 

Historically, VCIG has reported very strong net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 38.1%, down from 60.7% in FY22. 

VCI Global Limited reported a return on equity (RoE) of 31.5% in the last 12 months, down from 94.6% in FY22. 

Another important profitability metric, return on assets (RoA), amounted to 27.4% in the last 12 months, a decrease from 50.2% in FY22. 

In the last 12 months, the return on capital employed (RoCE) declined to 31.9%, above the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 6.9 in the past several years. This ratio implies a excellent shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

VCIG has very poor trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is very unstable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, robust profitability, solid return on capital, strong debt servicing capacity, adequate interest coverage, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, excessive margin volatility, and poor working capital management.

In highly turbulent market conditions, VCIG is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, VCIG is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from critical to immense. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. Specifically, the stock is 'expensive' on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

VCI Global Limited

$ 5.47

3

VCI Global Limited

$ 5.47

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

$ 5.47

About

About

About

About