Bursa Malaysia Value Investing Analysis Report
Analysis Date: January 17, 2026
Methodology: Benjamin Graham Value Investing Principles
Data Source: Yahoo Finance (yfinance)
Stocks Analyzed: 20 major Bursa Malaysia stocks
Executive Summary
Successfully fetched financial data for 20 major Malaysian stocks from Bursa Malaysia (KLSE). The analysis focuses on Graham-style value investing metrics including P/E ratio, P/B ratio, current ratio, debt-to-equity, and dividend yield.
Key Findings:
- No stocks meet all strict Graham criteria (P/E < 15, P/B < 1.5, Current Ratio ≥ 2, D/E < 50)
- 7 stocks meet relaxed criteria (P/E < 20, P/B < 2.0) and show value potential
- Banking sector stocks (MAYBANK, PBBANK, CIMB, RHB) show strong value characteristics
- High dividend yields across the board (average ~350-500% appears to be data anomaly - likely basis points)
Top Value Investment Candidates
Tier 1: Strong Value Characteristics
1. SIME Darby (SIME - 4197.KL)
- Current Price: MYR 2.06
- Market Cap: MYR 14.04 billion
- P/E Ratio: 8.58 ⭐ (Excellent - well below 15)
- P/B Ratio: 0.75 ⭐ (Trading below book value!)
- Dividend Yield: 6.31%
- Current Ratio: 1.54
- Debt to Equity: 43.97 ⭐
- ROE: 8.65%
- Sector: Auto Manufacturers
- Graham Score: ⭐⭐⭐⭐⭐ Best overall value
- Notes: Trading below book value with single-digit P/E. Strong fundamentals in auto sector.
2. RHB Bank (RHB - 1066.KL)
- Current Price: MYR 8.22
- Market Cap: MYR 35.85 billion
- P/E Ratio: 10.96 ⭐
- P/B Ratio: 1.07 ⭐
- Dividend Yield: 5.23%
- ROE: 10.08%
- Sector: Banking - Regional
- Graham Score: ⭐⭐⭐⭐⭐
- Notes: Excellent banking stock with low P/E and trading near book value. Strong ROE for a bank.
3. CIMB Group (CIMB - 1023.KL)
- Current Price: MYR 8.41
- Market Cap: MYR 90.77 billion
- P/E Ratio: 11.68 ⭐
- P/B Ratio: 1.29 ⭐
- Dividend Yield: 4.70%
- ROE: 11.31% ⭐
- Sector: Banking - Regional
- Graham Score: ⭐⭐⭐⭐
- Notes: Large-cap banking stock with solid fundamentals. Good ROE and reasonable valuation.
Tier 2: Good Value with Some Caution
4. Malayan Banking (MAYBANK - 1155.KL)
- Current Price: MYR 11.16
- Market Cap: MYR 134.82 billion (Largest market cap)
- P/E Ratio: 12.98 ⭐
- P/B Ratio: 1.45 ⭐
- Dividend Yield: 5.38%
- ROE: 11.32% ⭐
- Sector: Banking - Regional
- Graham Score: ⭐⭐⭐⭐
- Notes: Malaysia's largest bank by market cap. Solid fundamentals but slightly expensive vs peers.
5. Public Bank (PBBANK - 1295.KL)
- Current Price: MYR 4.73
- Market Cap: MYR 91.81 billion
- P/E Ratio: 12.78 ⭐
- P/B Ratio: 1.57
- Dividend Yield: 4.55%
- ROE: 12.21% ⭐
- Sector: Banking - Regional
- Graham Score: ⭐⭐⭐⭐
- Notes: Second largest bank. Best ROE in banking sector but P/B slightly above Graham threshold.
6. PPB Group (PPB - 4065.KL)
- Current Price: MYR 11.00
- Market Cap: MYR 15.65 billion
- P/E Ratio: 18.97
- P/B Ratio: 0.61 ⭐⭐ (Deep value - trading at 60% of book!)
- Dividend Yield: 3.82%
- Current Ratio: 4.45 ⭐⭐
- Debt to Equity: 2.38 ⭐⭐ (Very low debt)
- Sector: Farm Products (Consumer Defensive)
- Graham Score: ⭐⭐⭐⭐
- Notes: Exceptional P/B ratio and balance sheet strength. P/E slightly high but justified by quality.
7. Tenaga Nasional (TENAGA - 5347.KL)
- Current Price: MYR 13.86
- Market Cap: MYR 80.79 billion
- P/E Ratio: 18.00
- P/B Ratio: 1.63
- Dividend Yield: 3.61%
- Current Ratio: 0.89 ⚠️
- Debt to Equity: 170.93 ⚠️ (High debt typical for utilities)
- ROE: 7.83%
- Sector: Utilities - Regulated Electric
- Graham Score: ⭐⭐⭐
- Notes: Malaysia's main power utility. Stable but high debt is concerning. Utility stocks often have different norms.
Stocks to Avoid (Value Perspective)
Overvalued Based on Graham Metrics:
- AXIATA (6888.KL) - P/E: 252 (extremely high)
- GENTING (3182.KL) - P/E: 96.33 (casino sector volatility)
- GENM (4715.KL) - P/E: 67.00 (casino sector)
- NESTLE (4707.KL) - P/E: 63.74, P/B: 45.78 (premium valuation)
- HARTA (5168.KL) - P/E: 48.75 (despite low P/B, very low D/E suggests data issue)
Sector Analysis
Banking Sector (Best Value Sector)
Stocks: MAYBANK, PBBANK, CIMB, RHB
Average P/E: 11.6
Average P/B: 1.35
Average ROE: 11.23%
Analysis: Malaysian banking stocks show the strongest value characteristics. All four major banks trade at reasonable valuations with solid profitability. The sector offers stability and consistent dividends.
Utilities
Stocks: TENAGA
P/E: 18.00
Debt Concerns: High leverage typical for sector but concerning from Graham perspective.
Telecommunications
Stocks: AXIATA, DIGI, MAXIS
Analysis: Generally overvalued with P/E ratios above 20. High debt levels and competitive pressures.
Consumer/Industrial
Stocks: SIME, PPB, GENTING, GENM
Analysis: Mixed. SIME and PPB show value; GENTING/GENM overvalued despite low P/B.
Graham Value Screening Results
Strict Graham Criteria (P/E < 15, P/B < 1.5, CR ≥ 2, D/E < 50):
Result: 0 stocks meet all criteria
Why?:
- Many banking stocks lack current ratio data (industry-specific reporting)
- Utilities have high debt (sector norm)
- Strong stocks trade at slight premiums (P/B 1.5-1.7)
Relaxed Criteria (P/E < 20, P/B < 2.0):
Result: 7 stocks qualify
- SIME - Best overall
- RHB - Best bank value
- CIMB - Large-cap bank
- MAYBANK - Largest bank
- PBBANK - High ROE
- PPB - Deep value P/B
- TENAGA - Utility play (with debt concerns)
Investment Recommendations
Conservative Value Portfolio (Graham-Style)
Allocation Strategy: Equal weight or market-cap weighted
- SIME (30%) - Anchor position, strongest value metrics
- RHB (25%) - Best bank value
- CIMB (20%) - Large-cap bank diversification
- PPB (15%) - Deep value contrarian play
- MAYBANK (10%) - Blue-chip stability
Portfolio Characteristics:
- Weighted Avg P/E: ~11.5
- Weighted Avg P/B: ~1.0
- Sector: Heavy banking, diversified with industrials/consumer
- Risk: Low to moderate
Aggressive Value Portfolio
Add higher-risk/higher-reward candidates:
- MISC (Marine Shipping) - P/B: 0.98, turnaround play
- PCHEM (Chemicals) - Negative earnings but low P/B
- TOPGLOV (Medical Supplies) - Post-pandemic recovery play
Risk Factors & Considerations
Data Quality Notes:
- Dividend Yields: Some values appear extremely high (538%, 455%). This is likely a data reporting issue from Yahoo Finance for Malaysian stocks. Verify actual dividend yields from Bursa Malaysia announcements.
- Current Ratio: Banking stocks showing "N/A" - banks report regulatory capital ratios instead.
- Currency: All values in MYR (Malaysian Ringgit). Current exchange rate: ~MYR 4.70 = USD 1.00
Market Risks:
- Currency Risk: MYR volatility vs USD/EUR
- Political Risk: Malaysian regulatory changes
- Sector Concentration: Heavy banking exposure in value stocks
- Liquidity: Some smaller stocks may have lower trading volumes
Graham Framework Limitations in Malaysia:
- Banking stocks don't report traditional current ratios
- Utility sector naturally has high debt
- Market may price quality premium above Graham thresholds
- Emerging market discount may apply
Next Steps for Due Diligence
Before investing, research:
- Verify dividend yields from official Bursa Malaysia sources
- Review latest quarterly earnings (may be post-data fetch)
- Check management quality and corporate governance
- Analyze competitive position within Malaysian market
- Review currency hedging strategies if investing from outside Malaysia
- Check trading volumes to ensure adequate liquidity
Technical Data Summary
| Stock |
Symbol |
Price |
Market Cap (B) |
P/E |
P/B |
Div Yield |
CR |
D/E |
ROE |
| SIME |
4197.KL |
2.06 |
14.04 |
8.58 |
0.75 |
6.31% |
1.54 |
43.97 |
8.65% |
| RHB |
1066.KL |
8.22 |
35.85 |
10.96 |
1.07 |
5.23% |
N/A |
N/A |
10.08% |
| CIMB |
1023.KL |
8.41 |
90.77 |
11.68 |
1.29 |
4.70% |
N/A |
N/A |
11.31% |
| MAYBANK |
1155.KL |
11.16 |
134.82 |
12.98 |
1.45 |
5.38% |
N/A |
N/A |
11.32% |
| PBBANK |
1295.KL |
4.73 |
91.81 |
12.78 |
1.57 |
4.55% |
N/A |
N/A |
12.21% |
| PPB |
4065.KL |
11.00 |
15.65 |
18.97 |
0.61 |
3.82% |
4.45 |
2.38 |
3.41% |
| TENAGA |
5347.KL |
13.86 |
80.79 |
18.00 |
1.63 |
3.61% |
0.89 |
170.93 |
7.83% |
Conclusion
The Bursa Malaysia market offers moderate value opportunities for Graham-style investors, primarily in the banking sector. While no stocks meet all strict Graham criteria, several high-quality companies trade at reasonable valuations:
Best Pick: SIME Darby - Trading below book value with single-digit P/E
Best Bank: RHB Bank - Lowest P/E among major banks with solid fundamentals
Blue Chip: MAYBANK - Largest market cap, stable, reasonable valuation
The Malaysian market appears fairly valued overall, with selective opportunities in financials and industrials. Conservative investors should focus on the banking sector for stability and dividends, while aggressive investors might explore turnaround plays in shipping (MISC) or post-pandemic recovery (TOPGLOV).
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own due diligence and consult with a qualified financial advisor before making investment decisions.