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Lotus Circular Berhad an investment holding company, (7234) Fair Value & Analysis

Consumer Cyclical · MY · Market cap 85.8M MYR

LC Lotus Circular Berhad an investment holding company, 7234 · KLSE
Price0.2900 MYR
Fair Value0.3500 MYR
Upside+20.7%
Quality51/100
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Healthy Growth
Thin margins · 2.0% net margin
Low debt · generates free cash flow
Mixed vs. peers (7/13)
Narrow moat 30/100
Evidence: Medium Range 0.2600 MYR – 0.4400 MYR Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 23 days ago

Share price +3.6% over the past month.

A solid business, screening 21% undervalued on our models.

What matters now

  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from 0.2600 MYR (bear) to 0.4400 MYR (bull), base 0.3500 MYR. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 51/100 (solid quality) with medium evidence: read the verdict with care.
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Price vs Fair Value (5 years)

0.6650 MYR 0.2300 MYR Fair Value 0.3500 MYR Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range 0.2300 MYR – 0.6650 MYR · fair‑value band 0.2600 MYR – 0.4400 MYR · the 0.2900 MYR price screens below the 0.3500 MYR fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Lotus Circular Berhad an investment holding company, (7234) currently trades at 0.2900 MYR, while our model-based Fair Value estimate is 0.3500 MYR, implying the stock looks roughly 20.7% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Consumer Cyclical 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, Lotus Circular Berhad an investment holding company, generated revenue of 210M MYR at a net margin of 2.0%. Revenue grew 30.0% year over year. It earns a return on equity of 2.9%. Net debt stands at 11.6M MYR. Fundamentals as of Jul 18, 2026

Our scenario range runs from 0.2600 MYR (bear case) to 0.4400 MYR (bull case); at 0.2900 MYR, the current price sits within 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 27% below its 52-week high and 38% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -45% fair-value upside, at 21%, 7234 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 0.2100 MYR 0.2700 MYR 0.3500 MYR 80
Rev-Margin DCF 0.2800 MYR 0.4300 MYR 0.6200 MYR 74
ROIC Compounder 0.1800 MYR 0.1900 MYR 0.2000 MYR 72
All 24 models by family
DCF Models
FCF DCF 0.2100 MYR 0.2800 MYR 0.3700 MYR 38
Owner Earnings 0.2600 MYR 0.3500 MYR 0.4700 MYR 31
5Y Revenue Exit 0.2800 MYR 0.4400 MYR 0.6400 MYR 39
5Y EBITDA Exit 0.3200 MYR 0.5000 MYR 0.7300 MYR 41
5Y P/E Exit 0.2700 MYR 0.4000 MYR 0.5500 MYR 38
10Y Revenue Exit 0.2400 MYR 0.3600 MYR 0.5400 MYR 36
10Y EBITDA Exit 0.2700 MYR 0.4000 MYR 0.6000 MYR 37
10Y P/E Exit 0.2400 MYR 0.3400 MYR 0.4800 MYR 35
Earnings-Based
Graham-Dodd 0.1100 MYR 0.4200 MYR 0.5700 MYR 54
Lynch FV 0.1000 MYR 0.1500 MYR 0.1900 MYR 50
PEG = 1.0 0.1000 MYR 0.1500 MYR 0.1900 MYR 46
EPV 0.1800 MYR 0.1900 MYR 0.2000 MYR 59
Multiples
P/E Multiple 0.2600 MYR 0.3500 MYR 0.4400 MYR 63
P/S Multiple 0.2000 MYR 0.2700 MYR 0.3400 MYR 58
P/B Multiple 0.2000 MYR 0.2700 MYR 0.3400 MYR 55
EV/EBIT 0.4800 MYR 0.6200 MYR 0.7500 MYR 53
EV/EBITDA 0.4300 MYR 0.5500 MYR 0.6700 MYR 54
EV/Revenue 0.3500 MYR 0.4600 MYR 0.5800 MYR 43
Asset-Based
NCAV (Graham) 0.2000 MYR 0.2700 MYR 0.4100 MYR 50
Growth DCF
Growth DCF 0.2100 MYR 0.2700 MYR 0.3500 MYR 80
Rev-Margin DCF 0.2800 MYR 0.4300 MYR 0.6200 MYR 74
Economic Profit
Residual Income 0.2700 MYR 0.2600 MYR 0.2000 MYR 61
ROIC Compounder 0.1800 MYR 0.1900 MYR 0.2000 MYR 72
Growth Earnings
Growth-Adj P/E 0.1900 MYR 0.2700 MYR 0.3500 MYR 68

Widest divergence: DCF Models (0.3600 MYR) versus Earnings-Based (0.1500 MYR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 210M MYR
Revenue growth (YoY) +30.0%
Net margin 2.0%
Return on equity 2.9%
Free cash flow 4.8M MYR FY2025
P/E ratio 28.5
More key figures
Operating margin 4.4%
EPS (TTM) 0.0100 MYR
EPS growth (YoY) -88.4%
Net debt 11.6M MYR FY2020

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 54 · Market factors (momentum, volatility) 38

Profitability 49
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 50
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 40
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

Lotus Circular Berhad an investment holding company, engages in trading and retailing of leather products and apparel in Malaysia. It offers ladies' handbags and wallets; gents' leatherware, small leather goods, and accessories; and apparel for men and children.

Full company description

Lotus Circular Berhad an investment holding company, engages in trading and retailing of leather products and apparel in Malaysia. It offers ladies' handbags and wallets; gents' leatherware, small leather goods, and accessories; and apparel for men and children. The company also holds licenses to design, source, and market brands, such as Alain Delon, Pierre Cardin, Crocodile, and Féraud, as well as Tocco, Ducati, and its in-house brands, Giossardi and Giamax. In addition, it is involved in the waste recycling business; provision of slitting services and trim waste sales; wholesale of metal and non-metal waste, and scrap and materials for recycling; and sale and purchase of recycling material. The company was formerly known as MESB Berhad and changed its name to Lotus Circular Berhad in December 2024. Lotus Circular Berhad was incorporated in 1995 and is based in Seri Kembangan, Malaysia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Lotus Circular Berhad an investment holding company, reported revenue of 208M MYR in FY2025 versus 137M MYR in FY2021, a compound +11.1%/yr. Reported net income was 4.8M MYR in FY2025, compounding −15.1%/yr from FY2021.

Growth Quality 69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
208M MYR
Latest YoY
+10.9%
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.
+9.5%
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.
+7.1%
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.
+7.4%
Revenue +11.1%/yr
FY21 137M MYR
FY22 158M MYR
FY23 159M MYR
FY24 187M MYR
FY25 208M MYR
Net income −15.1%/yr
FY21 9.2M MYR
FY22 6.7M MYR
FY23 12.2M MYR
FY24 10.3M MYR
FY25 4.8M MYR

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Cite: Fair Value Calculator (2026). "Lotus Circular Berhad an investment holding company, Fair Value". https://www.fairvalue-calculator.com/stock/7234

Peer Group

Apparel Retail · 106 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 51 · Below median
Fair Value upside +21% · Above median
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 4% · Above median
Revenue growth 30% · Top 25%

Valuation Multiples vs Apparel Retail median · lower = cheaper

P/E (TTM) 28.5× · Pricier than median
P/B 0.70× · Cheaper than median
P/S (TTM) 0.41× · Cheaper than median
P/FCF 4.3× · Pricier than median
EV/EBITDA 5.9× · Cheaper 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 61 · sector 33
FUTURE 100 · sector 18
PAST 12 · sector 36
HEALTH 100 · sector 100
DIVIDEND 0 · sector 44

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.

Similar stocks

10 more Apparel Retail stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Industria de Diseño Textil, S.A 1ITX €58.44 €23.29 -60%
The TJX Companies, Inc TJX $154.46 $84.95 -45%
Fast Retailing Co 6288 HK$40.00 HK$15.37 -62%
Ross Stores, Inc ROST $233.46 $118.41 -49%
Burlington Stores, Inc BURL $327.72 $147.08 -55%
Trent Limited TRENT ₹2,903 ₹709.49 -76%
lululemon athletica inc., LULU $116.33 $299.63 +158%
Aritzia Inc ATZ C$160.05 C$87.26 -45%
The Gap, Inc GAP $20.35 $37.12 +82%
Urban Outfitters, Inc URBN $72.95 $92.88 +27%

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Frequently asked questions

Is Lotus Circular Berhad an investment holding company, (7234) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 0.3500 MYR versus a price of 0.2900 MYR, about +21% (undervalued).
What is the fair value of 7234?
Our model-based fair value for Lotus Circular Berhad an investment holding company, is 0.3500 MYR (as of Jul 18, 2026), built from audited fundamentals. The current price is 0.2900 MYR.
What is the quality score of 7234?
Lotus Circular Berhad an investment holding company, has a Quality Score of 51/100. 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 Lotus Circular Berhad an investment holding company, (7234)?
Lotus Circular Berhad an investment holding company, reported trailing-twelve-month revenue of about 210M MYR (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 7234?
The net profit margin of Lotus Circular Berhad an investment holding company, is about 2.0%, meaning it keeps roughly 2.0% 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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