Saturday, 19 March 2016

Poor earnings growth for Bursa listed companies (2)

I blogged before about this subject, and am updating my spreadsheet with the new results.

All FBMKLCI 30 companies have now released their 2015 results, the updated numbers per company look like (net profits in millions of RM):

The totals and growth numbers:

Some comments:
  • The Q4 numbers were slightly worse than expected, the 2015 earnings came in 6.6% below the 2014 numbers.
  • The 2015 numbers are even lower than the 2012 numbers, in other words negative growth over three years for the Top 30 companies on Bursa.
  • If we correct the numbers for inflation they would be worse.
  • For foreign investors who account in USD the numbers are even lower: -23% in 2015.
  • There are 10 companies with their year-end not in December, they have started to report their 2016 numbers already; the 2016 profit numbers of these 10 companies are RM 2 Billion lower then their comparable 2015 numbers.

All in all rather bad news, and this for the bluest of blue chips, with the Malaysian economy reportedly nicely humming along.

Eventually valuations are driven by fundamentals, if Malaysian companies want to attract foreign investors then earnings have to start growing again.

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