Companies honoured at the Best Under Billion Awards 2018

Did you know that over 80% 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.

On Nov 9, 2018 the BUB awards were once again held at the KL Hilton to honour the best companies in their class within a market cap range of RM150 mil and RM950 mil. The awards are supported by Bursa Malaysia while the judging and selection process were vetted by KPMG.

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

Furthermore, a captain of industry who exemplifies strong and visionary leadership was honoured. Check out the winners!

Categories for 2018 are:
  • Best Return on Assets
  • Best Revenue Growth
  • Best Profit Growth
  • Best Cash Flow from Operations
  • Best in Dividend Yield
  • Best Enterprise Value Growth
  • Best Sustainability Reporting
  • Best in Transparency
  • Best in Online Presence
  • Best Turnaround Story
  • Best CEO
  • Best Overall
AWARD WINNERS
Top performers were recognised across 10 award categories from two groups. Group A comprised winners with a market capitalisation of between RM150 mil and RM499 mil while Group B were those 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 2018 (FY16). The company with the highest ROA was named the winner.

Group A Winner

HOMERITZ CORPORATION BHD

Group B Winner

SCICOM MSC 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

MB WORLD GROUP BHD

Group B Winner

PENTAMASTER CORPORATION 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

COMFORT GLOVES BHD

Group B Winner

CAB CAKARAN CORPORATION 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

INNOPRISE PLANTATIONS BHD

Group B Winner

APEX HEALTHCARE 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

KENANGA INVESTMENT BANK BHD

Group B Winner

PARAMOUNT CORPORATION 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

HSS ENGINEERS BHD

Group B Winner

PENTAMASTER CORPORATION BHD

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 A Winner

AHMAD ZAKI RESOURCES BHD

Group B Winner

PHARMANIAGA 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

ELK-DESA RESOURCES BHD

Group B Winner

DAIBOCHI 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

PERAK TRANSIT BHD

Group B Winner

CYPARK RESOURCES BHD

This category aims to reward a company which has succeeded in navigating through headwinds to return to profitability. We analyse companies which have been performing poorly in the last three years (2015, 2016 and 2017), but have successfully steered clear of their travails in a significant manner. For such perfomance to be termed a "turnaround", the return of the company to the black has to be due to deft handling of its business. Profits due to sale of assets and extraordinary items are excluded.

Group A Winner

MALAYSIA STEEL WORKS (KL) BHD

Group B Winner

GABUNGAN AQRS BHD

The editors’ choice of best CEO was based on factors such as leadership skills, dynamism and business acumen. On a broader note, the editors analysed how CEOs steered their companies to greater heights and success.

Group A Winner

OCK GROUP BHD - OOI CHIN KHOON

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

PENTAMASTER CORPORATION BHD