Introduction

Ingenieur Gudang Berhad (INGENIEU) is a Malaysia-based property investment company focusing on developing warehouse storage facilities aimed at the courier and logistics sector, leveraging its strategic location in Puncak Alam. As of December 3, 2024, the company's stock price reflects a notable decline of 11.11%, with recent trading ranges showing volatility in the past year. Financial highlights reveal strong net profit margins and a low price-to-earnings ratio, indicating a potentially undervalued investment despite the current market challenges.

Ingenieur Gudang Berhad

The company has faced some market challenges, but its financials suggest it may be an undervalued investment opportunity. Let's dive into the key points to better understand the situation.

Key Points

  • Ingenieur Gudang Berhad, previously known as Dynaciate Group Berhad, specializes in property investment.
  • The company aims to develop warehouse space specifically for courier and logistics businesses due to its advantageous location.
  • The stock has experienced a decline of 11.11%, with today's trading range between 0.04 and 0.045.
  • Over the past 52 weeks, the stock price has fluctuated between 0.04 and 0.18.
  • Ingenieur's financial metrics indicate a T4Q P/E ratio of 2.79 and an impressive net profit margin of 56.22%.
  • The company currently shows no dividend payout, maintaining a 0.00% T4Q DY.
  • Ingenieur operates under the metals subsector, with subsidiary Magnitude Resources Sdn Bhd managing its operations.

Relevant issues related to it

  • The company’s latest quarterly results showed a net profit of RM1m, which translates to an earnings per share (EPS) of 0.07 sen.
  • The company’s price-to-earnings (P/E) ratio is currently at 19x, which is considered high compared to its peers.
  • There are concerns about the company’s high number of outstanding shares (NOSH), which has exceeded 1.5 billion due to frequent fund raising via massive share issuance to private placement, employee share option scheme (ESOS), and warrant conversion.
  • The company’s wholly-owned subsidiary, Magnitude Resources Sdn Bhd, is involved in the business of property investment.
  • The company intends to develop a piece of land into warehouse storage space targeting the courier and logistics market players.
  • There is an ongoing court case, Kuala Lumpur High Court Civil Suit No. WA-22NCC-519-07/2023, between Hanwa Co. Ltd (plaintiff) and Ingenieur Gudang Berhad (defendant).
  • The trial is fixed from 23 April 2025 to 26 April 2025 via Zoom, and parties are required to file witness statements by 21 March 2025.
  • The company’s stock price has been volatile, with some investors expressing concerns about the company’s financial performance and high P/E ratio.
  • Despite this, some investors are hopeful that the company’s stock price will go up, citing its low revenue and net profit as a potential opportunity for growth.

Conclusion

The recent decline in Ingenieur Gudang Berhad's stock price appears to be a temporary market challenge, as the company's financial metrics suggest it may be an undervalued investment opportunity. Despite the volatility, the company's strong net profit margins and low price-to-earnings ratio indicate potential for growth, especially given its strategic location in the courier and logistics sector.

However, investors should carefully analyze the company's long-term prospects and industry trends before making any investment decisions. Ongoing market conditions and potential risks should be thoroughly evaluated to ensure a well-informed investment strategy.