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ZECON Bhd (7028) Fair Value & Analysis

Industrials · MY · Market cap 72.5M MYR

ZB ZECON Bhd 7028 · KLSE
Price0.4650 MYR
Fair Value0.2800 MYR
Upside-39.8%
Quality30/100
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Risks

!Trades 66% ABOVE our fair value of 0.2800 MYR
!Mixed Growth (revenue 5y −23.6 %/yr)
!Thin margins · 0.5% net margin
!High debt · negative free cash flow
Mixed Growth (revenue 5y −23.6 %/yr)
Thin margins · 0.5% net margin
High debt · negative free cash flow
Trails peers (3/11)
Moderate moat 48/100
Evidence: Medium Range 0.2100 MYR – 0.3500 MYR Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 12 days ago

Share price −3.1% over the past month.

Below-average quality, and trading another 66% above our fair value.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

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What matters now

  • The price sits above even our optimistic bull case (0.3500 MYR). The favourable scenario is already priced in.
  • Weak quality (30/100) and above fair value at the same time, the margin of safety is missing on both counts.
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Price vs Fair Value (5 years)

0.6850 MYR 0.2600 MYR Fair Value 0.2800 MYR Jan 2020 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 0.2600 MYR – 0.6850 MYR · fair‑value band 0.2100 MYR – 0.3500 MYR · the 0.4650 MYR price screens above the 0.2800 MYR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

ZECON Bhd (7028) currently trades at 0.4650 MYR, while our model-based Fair Value estimate is 0.2800 MYR, implying the stock looks roughly 39.8% overvalued today. The Quality Score stands at 30/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, ZECON Bhd generated revenue of 102M MYR at a net margin of 0.5%. Revenue declined 0.1% year over year. It earns a return on equity of 5.8%. Net debt stands at 830M MYR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 0.2100 MYR (bear case) to 0.3500 MYR (bull case); at 0.4650 MYR, the current price sits above 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 11% below its 52-week high and 11% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -40%, 7028 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-Adj P/E 0.1800 MYR 0.2600 MYR 0.3400 MYR 68
P/E Multiple 0.2600 MYR 0.3400 MYR 0.4300 MYR 63
Residual Income 1.13 MYR 1.00 MYR 0.6200 MYR 61
All 7 models by family
Earnings-Based
Graham-Dodd 0.1100 MYR 0.1400 MYR 0.1500 MYR 54
Multiples
P/E Multiple 0.2600 MYR 0.3400 MYR 0.4300 MYR 63
P/S Multiple 0.2100 MYR 0.2800 MYR 0.3500 MYR 58
P/B Multiple 0.2100 MYR 0.2800 MYR 0.3500 MYR 55
Asset-Based
NCAV (Graham) 0.9200 MYR 1.24 MYR 1.85 MYR 50
Economic Profit
Residual Income 1.13 MYR 1.00 MYR 0.6200 MYR 61
Growth Earnings
Growth-Adj P/E 0.1800 MYR 0.2600 MYR 0.3400 MYR 68

Widest divergence: Asset-Based (1.24 MYR) versus Earnings-Based (0.1400 MYR). Highest evidence: Growth-Adj P/E (68).

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Key figures & financial health

P/S ratio 0.71 TTM
Net margin 0.5% TTM
Return on equity 5.8% TTM
Return on assets 2.2% TTM
Operating margin 107% TTM
Revenue (TTM) 102M MYR TTM
More key figures
Growth
Revenue growth (YoY) -0.1% 3y avg +7.2%
EPS growth (YoY) -85.1%
Balance sheet & cash flow
Free cash flow −6.2M MYR FY2026
Net debt 830M MYR FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 30/100

Of which business quality 24 · Market factors (momentum, volatility) 52

Profitability 13
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 2
Earnings quality: real cash, not paper profit
Fin. Strength 3
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 36
Distance to the 52-week high (market factor)
Net Issuance 47
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Zecon Berhad engages in the foundation engineering, civil engineering, building contracting, and related activities in Malaysia. It operates through seven segments: Construction, Property Development, Service Concession, Property Holding, Renewable Energy, Hotel Operations, Car Park Management, and Other.

Full company description

Zecon Berhad engages in the foundation engineering, civil engineering, building contracting, and related activities in Malaysia. It operates through seven segments: Construction, Property Development, Service Concession, Property Holding, Renewable Energy, Hotel Operations, Car Park Management, and Other. The company also offers piling works; and construct, operate, and maintenance of hospital. In addition, it is involved in management, maintenance, and rental of machineries, motor vehicles, and hardware of various descriptions; construction, housing development, and other related activities; sand dredging, earthworks, and material transportation services; hospital concession activities; property holding, investment, development, sales, and management activities; and supply of electrical or electric equipment and services. Further, the company provides computer, engineering, landscape care, maintenance, and consultancy services; hotel management; operates parking facilities; and dealing and implementing all renewable energy systems and activities. Zecon Berhad was incorporated in 1985 and is headquartered in Kuching, Malaysia.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

ZECON Bhd reported revenue of 102M MYR in FY2026 versus 633M MYR in FY2022, a compound −36.6%/yr. Reported net income was 2.6M MYR in FY2026.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
102M MYR
Latest YoY
+58.2%
Avg. revenue 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.
+7.2%
Avg. revenue 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.
−23.6%
Avg. revenue growth/yr (14Y) 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.
−2.7%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−41.9% (-41.9 + 0.0)
Revenue −36.6%/yr
FY22 633M MYR
FY23 83.2M MYR
FY24 83.6M MYR
FY25 64.8M MYR
FY26 102M MYR
Net income
FY22 −17.5M MYR
FY23 −4.2M MYR
FY24 2.0M MYR
FY25 55.6M MYR
FY26 2.6M MYR

7028 screens 40% overvalued. Compare with Quanta Services, Inc →

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Cite: Fair Value Calculator (2026). "ZECON Bhd Fair Value". https://www.fairvalue-calculator.com/stock/7028

Peer Group

Engineering & Construction · 840 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 30 · Bottom 25%
Fair Value upside −40% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 107% · Top 25%
Revenue growth -0% · Below median
Debt / equity 2.55× · Higher than 75% of peers

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/B 0.06× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers
EV/EBITDA 12.2× · 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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 17
FUTURE0 · sector 13
PAST23 · sector 26
HEALTH0 · sector 94
DIVIDEND0 · sector 38

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Vinci SA DG €119.95 €185.62 +55%
Comfort Systems USA, Inc FIX $1,739 $519.97 -70%
Larsen & Toubro Limited LT ₹4,072 ₹2,196 -46%
Ferrovial N.V FER €57.28 €19.17 -67%
HOCHTIEF Aktiengesellschaft HOT €427.60 €203.87 -52%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
ACS, Actividades de Construcción y Servicios, S.A ACS €104.30 €75.04 -28%
EMCOR Group EME $833.40 $549.47 -34%
MasTec, Inc MTZ $281.11 $100.00 -64%

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Frequently asked questions

Is ZECON Bhd (7028) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 0.2800 MYR versus a price of 0.4650 MYR, about −40% (overvalued).
What is the fair value of 7028?
Our model-based fair value for ZECON Bhd is 0.2800 MYR (as of Aug 13, 2026), built from audited fundamentals. The current price: 0.4650 MYR.
What is the quality score of 7028?
ZECON Bhd has a Quality Score of 30/100. 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 ZECON Bhd (7028)?
ZECON Bhd reported trailing-twelve-month revenue of about 102M MYR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 7028?
The net profit margin of ZECON Bhd is about 0.5%, meaning it keeps roughly 0.5% 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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