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Southern Acids (M) Berhad, an investment holding company, (5134) Fair Value & Analysis

Industrials · MY · Market cap 419M MYR

SA Southern Acids (M) Berhad, an investment holding company, 5134 · KLSE
Price3.01 MYR
Fair Value4.64 MYR
Upside+54.2%
Quality61/100
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Healthy Growth
Thin margins · 4.1% net margin
Low debt · generates free cash flow
1.63% dividend yield
Ranks above peers (10/13)
Moderate moat 45/100
Evidence: Medium Range 3.48 MYR – 5.80 MYR Share as image

Fair value as of: Jul 19, 2026

From 12 valuation models · updated 22 days ago

Fair value updated Jul 19, 2026, revised from 4.56 MYR to 4.64 MYR (+1.8%) since Jun 26, 2026. Share price −2.9% over the past month.

A solid business, screening 54% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (3.48 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (61/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

3.95 MYR 2.53 MYR Fair Value 4.64 MYR Mar 2019 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range 2.53 MYR – 3.95 MYR · fair‑value band 3.48 MYR – 5.80 MYR · the 3.01 MYR price screens below the 4.64 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Southern Acids (M) Berhad, an investment holding company, (5134) currently trades at 3.01 MYR, while our model-based Fair Value estimate is 4.64 MYR, implying the stock looks roughly 54.2% undervalued today. The Quality Score stands at 61/100 (solid quality), in the Industrials 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, Southern Acids (M) Berhad, an investment holding company, generated revenue of 919M MYR at a net margin of 4.1%. Revenue declined 23.5% year over year. It earns a return on equity of 5.9%. The stock trades on a trailing P/E of 11.6. Fundamentals as of Jul 19, 2026

Our scenario range runs from 3.48 MYR (bear case) to 5.80 MYR (bull case); at 3.01 MYR, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 15% below its 52-week high and 1% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at 54%, 5134 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF 8.72 MYR 10.45 MYR 12.50 MYR 80
Residual Income 4.07 MYR 3.98 MYR 3.45 MYR 76
Rev-Margin DCF 8.24 MYR 10.69 MYR 13.33 MYR 74
All 12 models by family
DCF Models
Owner Earnings 5.10 MYR 5.77 MYR 6.59 MYR 31
5Y P/E Exit 7.65 MYR 9.55 MYR 11.43 MYR 38
10Y P/E Exit 8.01 MYR 9.60 MYR 11.33 MYR 35
Earnings-Based
Graham-Dodd 1.86 MYR 4.41 MYR 5.68 MYR 54
Dividend Discount
Gordon GGM 0.3900 MYR 0.6100 MYR 0.8400 MYR 70
DDM Multi-Stage 0.3900 MYR 0.5400 MYR 0.6900 MYR 61
Multiples
P/E Multiple 4.30 MYR 5.73 MYR 7.17 MYR 63
P/B Multiple 3.48 MYR 4.64 MYR 5.80 MYR 55
Asset-Based
NCAV (Graham) 2.85 MYR 3.82 MYR 5.71 MYR 50
Growth DCF
Growth DCF 8.72 MYR 10.45 MYR 12.50 MYR 80
Rev-Margin DCF 8.24 MYR 10.69 MYR 13.33 MYR 74
Economic Profit
Residual Income 4.07 MYR 3.98 MYR 3.45 MYR 76

Widest divergence: Growth DCF (10.45 MYR) versus Dividend Discount (0.5400 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 919M MYR
Revenue growth (YoY) -23.5%
Net margin 4.1%
Return on equity 5.9%
Free cash flow 83.7M MYR FY2026
P/E ratio 11.6
More key figures
Operating margin 17.2%
EPS (TTM) 0.2700 MYR
Dividend yield 1.6%
EPS growth (YoY) +380%

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 61 · Market factors (momentum, volatility) 47

Profitability 35
Margins and returns on capital today
Quality Growth 10
Are margins and returns improving?
Cashflow 64
Earnings quality: real cash, not paper profit
Fin. Strength 88
Balance sheet, leverage, solvency risk
Investment 92
Disciplined investing over empire-building
Low Volatility 91
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

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

Southern Acids (M) Berhad, an investment holding company, engages in the manufacture and trading of oleochemical products in Malaysia, Indonesia, Asia, Europe, the United States, and internationally. The company operates through four segments: Oleochemical Manufacturing, Milling & Cultivation, Investments & Services, and Healthcare Services.

Full company description

Southern Acids (M) Berhad, an investment holding company, engages in the manufacture and trading of oleochemical products in Malaysia, Indonesia, Asia, Europe, the United States, and internationally. The company operates through four segments: Oleochemical Manufacturing, Milling & Cultivation, Investments & Services, and Healthcare Services. It offers fatty acids and glycerine for use in various applications, including personal care, cleaning agents, cosmetic, pharmaceutical, and food products. It is also involved in the processing of fresh fruit bunches into crude palm oil and palm kernel, as well as oil palm cultivation activities. In addition, it operates private hospital in Klang for the provision of cardiology, hand and microsurgery, nephrology, neurosurgery, orthopaedic surgery, obstetrics and gynaecology, radiotherapy, oncology services, cancer, fertility, cardiac care, and E.N.T. head and neck surgery. Further, it provides plantation; administrative; overhead conveyor goods loading services; warehousing; and port cargo handling, as well as develops properties and leases hospital building. Southern Acids (M) Berhad was incorporated in 1980 and is headquartered in Klang, Malaysia.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Southern Acids (M) Berhad, an investment holding company, reported revenue of 919M MYR in FY2026 versus 1.2B MYR in FY2022, a compound −6.0%/yr. Reported net income was 37.4M MYR in FY2026, compounding −20.7%/yr from FY2022.

Growth Quality 82/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
919M MYR
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−2.5%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.6%
Avg. growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.4%
Revenue −6.0%/yr
FY22 1.2B MYR
FY23 1.1B MYR
FY24 908M MYR
FY25 1.1B MYR
FY26 919M MYR
Net income −20.7%/yr
FY22 94.4M MYR
FY23 33.3M MYR
FY24 13.6M MYR
FY25 36.7M MYR
FY26 37.4M MYR

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Cite: Fair Value Calculator (2026). "Southern Acids (M) Berhad, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/5134

Peer Group

Conglomerates · 369 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 61 · Top 25%
Fair Value upside +54% · Top 25%
Return on equity (TTM) 6% · Above median
Return on assets 5% · Top 25%
Net margin (TTM) 4% · Above median
Operating margin (TTM) 17% · Top 25%
Revenue growth -24% · Bottom 25%
Dividend yield (TTM) 1.6% · Below median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 11.3× · Cheaper than median
P/B 0.13× · Cheaper than 75% of peers
P/S (TTM) 0.11× · Cheaper than 75% of peers
P/FCF 1.2× · Pricier than median

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 100 · sector 20
FUTURE 0 · sector 16
PAST 24 · sector 20
HEALTH 100 · sector 88
DIVIDEND 33 · sector 39

Values & ESG

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

None of the checked exposures detected

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

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Frequently asked questions

Is Southern Acids (M) Berhad, an investment holding company, (5134) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of 4.64 MYR versus a price of 3.01 MYR, about +54% (undervalued).
What is the fair value of 5134?
Our model-based fair value for Southern Acids (M) Berhad, an investment holding company, is 4.64 MYR (as of Jul 19, 2026), built from audited fundamentals. The current price is 3.01 MYR.
What is the quality score of 5134?
Southern Acids (M) Berhad, an investment holding company, has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Southern Acids (M) Berhad, an investment holding company, (5134)?
Southern Acids (M) Berhad, an investment holding company, reported trailing-twelve-month revenue of about 919M MYR (latest available figure, as of Jul 19, 2026).
What is the net profit margin of 5134?
The net profit margin of Southern Acids (M) Berhad, an investment holding company, is about 4.1%, meaning it keeps roughly 4.1% of revenue as net income. Based on the latest reported figures.
Does Southern Acids (M) Berhad, an investment holding company, pay a dividend?
Southern Acids (M) Berhad, an investment holding company, currently shows a dividend yield of about 1.61% relative to its recent price (as of Jul 19, 2026).

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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