The Discounted Cash Flow (DCF) valuation of M3 Technologies (Asia) Bhd (M3TECH.KL) is 0.03 MYR. With the latest stock price at 0.04 MYR, the upside of M3 Technologies (Asia) Bhd based on DCF is -38%.

Is M3TECH.KL a buy or a sell?

Based on the latest price of 0.04 MYR and our DCF valuation, M3 Technologies (Asia) Bhd (M3TECH.KL) is a sell. Selling M3TECH.KL stocks now will result in a potential gain of 38%.

	Range	Selected
WACC / Discount Rate	8.3% - 11.2%	9.8%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	0.02 - 0.04	0.03
Upside	-52.1% - -7.7%	-38.0%

0.04 MYR

Stock Price

0.03 MYR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

M3TECH.KL DCF Valuation: Revenue & Expenses Forecast

(MYR in millions)		Projections

	03-2021	03-2022	03-2023	03-2024	03-2025	03-2026

Revenue	58	67	77	85	95	105
% Growth	29%	16%	15%	11%	12%	10%

Cost of goods sold	(45)	(50)	(54)	(57)	(61)	(63)
% of Revenue	78%	74%	70%	67%	64%	60%

Selling, G&A expenses	(16)	(18)	(21)	(23)	(26)	(29)
% of Revenue	27%	27%	27%	27%	27%	27%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	0	1	1	1	1	1
% of Revenue	1%	1%	1%	1%	1%	1%

Tax expense	(3)	0	(1)	(1)	(2)	(3)
Tax rate	98%	24%	24%	24%	24%	24%

Net profit	(5)	(0)	2	4	7	10
% Margin	-9%	-1%	2%	5%	8%	10%