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Favelle Favco Berhad, an investment holding company, (7229) Fair Value & Analysis

Industrials · MY · Market cap 397M MYR

FF Favelle Favco Berhad, an investment holding company, 7229 · KLSE
Price1.70 MYR
Fair Value4.43 MYR
Upside+160.6%
Quality56/100
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Mixed Growth
Thin margins · 5.6% net margin
Low debt · generates free cash flow
5.33% dividend yield
Ranks above peers (9/14)
Narrow moat 35/100
Evidence: High Range 3.32 MYR – 5.54 MYR Share as image

Fair value as of: Jul 15, 2026

From 24 valuation models · updated 26 days ago

Fair value updated Jul 15, 2026, revised from 4.44 MYR to 4.43 MYR (−0.2%) since Jun 25, 2026. Share price +1.2% over the past month.

A solid business, screening 161% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (3.32 MYR). The market is more pessimistic than our downside scenario.
  • Solid quality (56/100) 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)

2.09 MYR 1.26 MYR Fair Value 4.43 MYR Feb 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range 1.26 MYR – 2.09 MYR · fair‑value band 3.32 MYR – 5.54 MYR · the 1.70 MYR price screens below the 4.43 MYR fair value. Dashed = 300-day average. As of Jul 15, 2026.

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Analysis

Favelle Favco Berhad, an investment holding company, (7229) currently trades at 1.70 MYR, while our model-based Fair Value estimate is 4.43 MYR, implying the stock looks roughly 160.6% undervalued today. The Quality Score stands at 56/100 (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: high), always confirm before acting.

Over the trailing twelve months, Favelle Favco Berhad, an investment holding company, generated revenue of 765M MYR at a net margin of 5.6%. Revenue declined 12.6% year over year. It earns a return on equity of 6.5%. The balance sheet holds a net cash position of 75.0M MYR. Fundamentals as of Jul 15, 2026

Our scenario range runs from 3.32 MYR (bear case) to 5.54 MYR (bull case); at 1.70 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 1% below its 52-week high and 13% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at 12% fair-value upside, at 161%, 7229 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 3.07 MYR 3.68 MYR 4.43 MYR 80
Residual Income 2.57 MYR 2.60 MYR 2.48 MYR 76
Rev-Margin DCF 3.42 MYR 4.71 MYR 6.10 MYR 74
All 24 models by family
DCF Models
FCF DCF 3.02 MYR 3.68 MYR 4.53 MYR 38
Owner Earnings 3.25 MYR 3.97 MYR 4.91 MYR 31
5Y Revenue Exit 3.42 MYR 4.68 MYR 6.27 MYR 39
5Y EBITDA Exit 4.18 MYR 5.99 MYR 8.07 MYR 41
5Y P/E Exit 3.46 MYR 4.75 MYR 6.06 MYR 38
10Y Revenue Exit 3.16 MYR 4.17 MYR 5.38 MYR 36
10Y EBITDA Exit 3.66 MYR 4.97 MYR 6.53 MYR 37
10Y P/E Exit 3.25 MYR 4.22 MYR 5.24 MYR 35
Earnings-Based
Graham-Dodd 1.44 MYR 2.88 MYR 3.62 MYR 54
EPV 2.75 MYR 3.00 MYR 3.21 MYR 59
Dividend Discount
Gordon GGM 0.7000 MYR 0.9400 MYR 1.17 MYR 70
DDM Multi-Stage 0.7000 MYR 0.9300 MYR 1.16 MYR 61
Multiples
P/E Multiple 3.32 MYR 4.43 MYR 5.54 MYR 63
P/S Multiple 2.69 MYR 3.59 MYR 4.48 MYR 58
P/B Multiple 2.69 MYR 3.59 MYR 4.48 MYR 55
EV/EBIT 5.13 MYR 6.55 MYR 7.96 MYR 53
EV/EBITDA 5.65 MYR 7.23 MYR 8.81 MYR 54
EV/Revenue 3.92 MYR 5.22 MYR 6.51 MYR 43
Asset-Based
NCAV (Graham) 1.72 MYR 2.30 MYR 3.44 MYR 50
Growth DCF
Growth DCF 3.07 MYR 3.68 MYR 4.43 MYR 80
Rev-Margin DCF 3.42 MYR 4.71 MYR 6.10 MYR 74
Economic Profit
Residual Income 2.57 MYR 2.60 MYR 2.48 MYR 76
ROIC Compounder 2.75 MYR 3.00 MYR 3.21 MYR 72
Growth Earnings
Growth-Adj P/E 2.41 MYR 3.44 MYR 4.48 MYR 68

Widest divergence: Multiples (4.43 MYR) versus Dividend Discount (0.9300 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 765M MYR
Revenue growth (YoY) -12.6%
Net margin 5.6%
Return on equity 6.5%
Free cash flow 58.3M MYR FY2025
P/E ratio 9.3
More key figures
Operating margin 4.6%
EPS (TTM) 0.1800 MYR
Dividend yield 5.3%
EPS growth (YoY) -50.7%
Net cash 75.0M MYR FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 56/100

Of which business quality 56 · Market factors (momentum, volatility) 66

Profitability 29
Margins and returns on capital today
Quality Growth 21
Are margins and returns improving?
Cashflow 55
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 98
Calm price path (market factor)
Momentum 47
Price trend over the last 3–12 months (market factor)
52W Momentum 63
Distance to the 52-week high (market factor)
Net Issuance 81
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

Favelle Favco Berhad, an investment holding company, engages in the manufacturing of cranes and lifting solutions under the Favelle Favco and Kroll brands in Malaysia and internationally. It operates through Cranes and Intelligent Automation Group segments.

Full company description

Favelle Favco Berhad, an investment holding company, engages in the manufacturing of cranes and lifting solutions under the Favelle Favco and Kroll brands in Malaysia and internationally. It operates through Cranes and Intelligent Automation Group segments. The Cranes segment designs, manufactures, supplies, trades, leases, and services cranes, such as offshore oil and gas pedestal, tower, shipyard, and other heavy lifting equipment cranes. Its Intelligent Automation Group segment is involved in the design, engineering, and maintenance of integrated automation solutions, process analyzers, and specialized equipment for various industries. The company was founded in 1923 and is headquartered in Klang, Malaysia. Favelle Favco Berhad is a subsidiary of Muhibbah Engineering (M) Bhd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Favelle Favco Berhad, an investment holding company, reported revenue of 786M MYR in FY2025 versus 610M MYR in FY2021, a compound +6.5%/yr. Reported net income was 49.9M MYR in FY2025, compounding +0.9%/yr from FY2021.

Growth Quality 63/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
786M MYR
Latest YoY
−12.7%
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.
+9.8%
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.
+7.2%
Avg. growth/yr (19Y) 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.
+4.2%
Revenue +6.5%/yr
FY21 610M MYR
FY22 595M MYR
FY23 765M MYR
FY24 901M MYR
FY25 786M MYR
Net income +0.9%/yr
FY21 48.1M MYR
FY22 38.7M MYR
FY23 50.6M MYR
FY24 53.9M MYR
FY25 49.9M MYR
Character of growth · EPS growth decomposed (2014-2025) −6.3 % p.a.
Revenue per share +0.5 pp

of which total revenue +1.4 pp · buybacks/dilution −0.9 pp

EBIT margin −2.2 pp
Tax rate −2.3 pp
Residual (interest, one-offs) −2.3 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Favelle Favco Berhad, an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/7229

Peer Group

Farm & Heavy Construction Machinery · 148 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 56 · Above median
Fair Value upside +161% · Top 25%
Return on equity (TTM) 7% · Below median
Return on assets 3% · Below median
Net margin (TTM) 6% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -13% · Bottom 25%
Dividend yield (TTM) 5.3% · Top 25%
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Farm & Heavy Construction Machinery median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than 75% of peers
P/B 0.12× · Cheaper than 75% of peers
P/S (TTM) 0.13× · Cheaper than 75% of peers
P/FCF 1.7× · Cheaper than median
PEG 0.21× · Cheaper than 75% of peers

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 22
FUTURE 0 · sector 30
PAST 26 · sector 32
HEALTH 100 · sector 93
DIVIDEND 100 · sector 40

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 Favelle Favco Berhad, an investment holding company, (7229) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of 4.43 MYR versus a price of 1.70 MYR, about +161% (undervalued).
What is the fair value of 7229?
Our model-based fair value for Favelle Favco Berhad, an investment holding company, is 4.43 MYR (as of Jul 15, 2026), built from audited fundamentals. The current price is 1.70 MYR.
What is the quality score of 7229?
Favelle Favco Berhad, an investment holding company, has a Quality Score of 56/100. 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 Favelle Favco Berhad, an investment holding company, (7229)?
Favelle Favco Berhad, an investment holding company, reported trailing-twelve-month revenue of about 765M MYR (latest available figure, as of Jul 15, 2026).
What is the net profit margin of 7229?
The net profit margin of Favelle Favco Berhad, an investment holding company, is about 5.6%, meaning it keeps roughly 5.6% of revenue as net income. Based on the latest reported figures.
Does Favelle Favco Berhad, an investment holding company, pay a dividend?
Favelle Favco Berhad, an investment holding company, currently shows a dividend yield of about 5.66% relative to its recent price (as of Jul 15, 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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