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Hengyuan Refining Company (4324) Fair Value & Analysis

Energy · MY · Market cap 828M MYR

HR Hengyuan Refining Company 4324 · KLSE
Price1.48 MYR
Fair Value2.11 MYR
Upside+42.4%
Quality48/100
Mixed Growth
Thin margins · 2.8% net margin
Low debt · generates free cash flow
Ranks above peers (10/12)
Moderate moat 52/100
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Evidence: Medium Range 1.32 MYR – 2.11 MYR Share as image

Fair value as of: Jul 16, 2026

From 10 valuation models · updated 15 days ago

Share price +42.3% over the past month.

Price vs Fair Value (12 months)

1.90 MYR 0.7300 MYR Fair Value 2.11 MYR Jul 2025 Jul 2026

12‑month range 0.7300 MYR – 1.90 MYR · fair‑value band 1.32 MYR – 2.11 MYR · the 1.48 MYR price screens below the 2.11 MYR fair value. As of Jul 16, 2026.

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Analysis

Hengyuan Refining Company (4324) currently trades at 1.48 MYR, while our model-based Fair Value estimate is 2.11 MYR, implying the stock looks roughly 42.4% undervalued today. We read business quality at 48/100 (below-average quality), in the Energy sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Hengyuan Refining Company generated revenue of 15.4B MYR at a net margin of 2.8%. Revenue grew 92.6% year over year. It earns a return on equity of 35.9%. Net debt stands at 372M MYR. Fundamentals as of Jul 16, 2026

Our scenario range runs from 1.32 MYR (bear case) to 2.11 MYR (bull case); at 1.48 MYR, the current price sits within that range. The share trades about 30% below its 52-week high and 106% above its 52-week low, currently above its 200-day average. For context, the median of 10 Energy peers we cover trades at -34% fair-value upside, at 42%, 4324 screens cheaper than that median.

Key figures & financial health

Revenue (TTM) 15.4B MYR
Revenue growth (YoY) +92.6%
Net margin 2.8%
Return on equity 35.9%
Free cash flow 143M MYR FY2025
P/E ratio 3.1
More key figures
Operating margin 11.9%
EPS (TTM) 0.4300 MYR
EPS growth (YoY) +592%
Net debt 372M MYR FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 48/100
Profitability 21
Quality Growth 37
Cashflow 36
Fin. Strength 61
Investment 100
Low Volatility 50
Momentum 64
52W Momentum 63
Net Issuance 0

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Hengyuan Refining Company Berhad engages in refining, manufacturing, and selling petroleum products in Malaysia. It offers liquefied petroleum gas; petrol; jet fuel; diesel; fuel oil components; sulphur; light naphtha; and propylene.

Full company description

Hengyuan Refining Company Berhad engages in refining, manufacturing, and selling petroleum products in Malaysia. It offers liquefied petroleum gas; petrol; jet fuel; diesel; fuel oil components; sulphur; light naphtha; and propylene. The company was formerly known as Shell Refining Company (Federation of Malaya) Berhad and changed its name to Hengyuan Refining Company Berhad in March 2017. Hengyuan Refining Company Berhad was incorporated in 1960 and is based in Kuala Lumpur, Malaysia. The company operates as a subsidiary of Malaysia Hengyuan International Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hengyuan Refining Company reported revenue of 13.2B MYR in FY2025 versus 12.0B MYR in FY2021, a compound +2.3%/yr. Reported net income was −260M MYR in FY2025.

Revenue +2.3%/yr
FY21 12.0B MYR
FY22 21.1B MYR
FY23 15.4B MYR
FY24 17.2B MYR
FY25 13.2B MYR
Net income
FY21 82.7M MYR
FY22 −158M MYR
FY23 −489M MYR
FY24 −358M MYR
FY25 −260M MYR

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Cite: Fair Value Calculator (2026). "Hengyuan Refining Company Fair Value". https://www.fairvalue-calculator.com/stock/4324

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 90 / 16
FUTURE 100 / 15
PAST 100 / 33
HEALTH 92 / 80
DIVIDEND 0 / 50

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
Reliance Industries Limited RELIANCE ₹1,259 ₹835.66 -34%
Valero Energy Corporation VLO $255.82 $114.28 -55%
Marathon Petroleum Corporation MPC $262.01 $129.07 -51%
Phillips 66 PSX $183.08 $50.63 -72%
Neste Oyj NESTE €28.45 €6.38 -78%
Formosa Petrochemical Corporation 6505 51.40 TWD 20.61 TWD -60%
ENEOS Holdings JXHLY $16.46 $17.72 +8%
Indian Oil Corporation IOC ₹138.26 ₹394.34 +185%
HF Sinclair Corporation DINO $65.84 $52.19 -21%
Bharat Petroleum Corporation BPCL ₹288.00 ₹694.69 +141%

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Frequently asked questions

Is Hengyuan Refining Company (4324) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of 2.11 MYR versus a price of 1.48 MYR, about +42% (undervalued).
What is the fair value of 4324?
Our model-based fair value for Hengyuan Refining Company is 2.11 MYR (as of Jul 16, 2026), built from audited fundamentals. The current price is 1.48 MYR.
What is the quality score of 4324?
Hengyuan Refining Company has a Quality Score of 48/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Hengyuan Refining Company (4324)?
Hengyuan Refining Company reported trailing-twelve-month revenue of about 15.4B MYR (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 4324?
The net profit margin of Hengyuan Refining Company is about 2.8%, meaning it keeps roughly 2.8% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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