Watch Out for the Best Under Billion Awards 2017

Did you know that over 81% of all Bursa Malaysia-listed companies have a market capitalisation of below RM1 bil? They are involved in every sector and industry and are the lifeblood of the Malaysian economy providing job opportunities.

Most have humble beginnings as family businesses or small and medium enterprises but have grown to be a significant, if not the dominant, players in their areas of expertise. Several have even expanded beyond Malaysia to set up shop around the world. 

Yet many are not easily recognisable names even among investors and analysts.  

Focus Malaysia’s Best Under Billion Awards (BUB Awards) has changed that by shining the spotlight on the best of these companies.

Held annually since 2015, the awards were conceptualised to acknowledge the achievements of these often underappreciated businesses which deserve to be recognised and commended for their stellar performances.

This October, the BUB awards will once again be awarded to the best companies in their class within a market cap range of RM150 mil and RM950 mil.

Awards will be given to those who have charted the best financial results and shareholder value over the past three years, including those with a record of strong sustainability and good governance. From these category winners, an overall winner will also be chosen.

Furthermore, a captain of industry who exemplifies strong and visionary leadership will also be honoured.  

Categories for 2017 are:
  • Best Return on Assets
  • Best Revenue Growth
  • Best Profit Growth
  • Best Cash Flow from Operations
  • Best Enterprise Value Growth
  • Best in Dividend Yield
  • Best in Transparency
  • Best Sustainability Reporting
  • Best in Online Presence
  • Best Turnaround Story
AWARD WINNERS
Top performers were recognised across eight award categories, with two winners named in each one. One winner came from companies with a market capitalisation of between RM150 mil and RM499 mil, and another from companies in the RM500 mil to RM950 mil range. In addition, there was an overall winner and a Best CEO award.

Return on assets (ROA) tells us how efficient a company is in utilising its assets. We calculated the ROA for all the 400 listed companies with a market capitalisation of below RM1 bil for the financial year 2017 (FY16). The company with the highest ROA was named the winner.

Group A Winner

Pentamaster Corp Bhd

Group B Winner

SCICOM Bhd

We compiled a company’s revenue for the past three years and then calculated the compound annual growth rate (CAGR). A company had to show consistent revenue growth, excluding any extraordinary gains. The company with the highest three-year revenue CAGR was named the winner.

Group A Winner

Ecofirst Consolidated Bhd

Group B Winner

Innoprise Plantations Bhd

We compiled a company’s net profit for the past three years and then calculated the compound annual growth rate (CAGR). A company had to show consistent growth, not just sharp spurts (excluding any extraordinary gains and growth). The company with the highest three-year net profit CAGR was the winner.

Group A Winner

Ewein Bhd

Group B Winner

Innoprise Plantations Bhd

How fast a company makes money from its operations may be the single most important factor in evaluating its health and current growth. Cash is King. Hence, having a healthy cashflow is very important for companies. A company had to show consistent growth, excluding any extraordinary gains and growth. The company with the highest three year cashflow from operations was the winner.

Group A Winner

Hexza Corp Bhd

Group B Winner

Mitrajaya Holdings Bhd

The strength of a company is determined by its enterprise value (EV), beyond mere market capitalization, which is subjected to vagaries of the market. We looked at a company’s enterprise value growth rate over two years for all the companies under consideration. The company with the highest year-on-year EV growth was named the winner.

Group A Winner

AWC Bhd

Group B Winner

SCGM Bhd

The higher the better. This is a very important figure for investors who look for gains from investment stocks. We selected the company with the highest dividend yield for FY16.

Group A Winner

Signature Internation Bhd

Group B Winner

RCE Capital Bhd

We put a weighted score on six factors to determine how transparent a company is based on its disclosure to shareholders. These included: a transparency pledge, time taken to file annual financial results, precise remuneration of directors, AGM minutes, video recording or podcast, dividend policy statement and whistle-blower policy. The company with the highest weighted score was the winner.

Group A Winner

WZ Satu Bhd

Group B Winner

AmFirst REIT

We put a weighted score on three main areas which were broken down into subsections to determine how comprehensive the company’s sustainability reporting was. These included providing stakeholders with a complete view of the company’s operations linking it to its business goals and credibility, how much of what was reported has in fact materialised into action on the ground and how well the report communicates is intentions and results to its declared target audience. The company with the highest weighted score was the winner.

Group B Winner

Salcon Bhd

We put a weighted score on six factors to determine how transparent a company is based on its disclosure to shareholders. These included: a transparency pledge, time taken to file annual financial results, precise remuneration of directors, AGM minutes, video recording or podcast, dividend policy statement and whistle-blower policy. The company with the highest weighted score was the winner.

Group A Winner

Sasbadi Holding Bhd

Group B Winner

HEKTAR REIT

The Best Under Billion Awards categories were divided into financial performance, efficiency and transparency. With a 30:30:40 weightage given to each of the categories respectively, the Overall Winner had the highest scores in all three areas.

Group A Winner

Notion VTec Bhd

Group B Winner

Pelikan International Corp Bhd