The Top Three MoAT (ROA) Achievers in KLSE's Entire IT Sector FYE 2024
= SMRT, ADB, INFOTEC

$SMRT / 0117 (SMRT HOLDINGS BERHAD)
$KLSE-ADB
$INFOTEC / 0253 (INFOLINE TEC GROUP BERHAD)

Below is the MoAT analysis of INFOTEC:

INFOLINE TEC GROUP

i.

MoAT FYE 2024
= ROA
= 100×17,457÷92,917
= 18.7877352906


ii.

Intrinsic Earning Value (MoAT Model) FYE 2024
= ROA × EPS
= 18.7877352906×0.048060589
= RM 0.902949624


iii.

Intrinsic Earning Value (ROIC Model) FYE 2024
= ROIC × EPS
= 26.1598633339×0.0480605899
= RM 1.2572584635


iv.

Intrinsic ATC Number FYE 2024 (ROA Model)
= ROA × √( EPS × [ ROA_Ratio × NCAVPS ] )
= 18.7877352906×√(0.0480605899×(0.187877352906×0.1283763136))
= RM 0.6396591957


v.

Intrinsic ATC Number FYE 2024 (ROIC Model)
= ROIC × √( EPS × [ ROIC_Ratio × NCAVPS ] )
= 26.1598633339×√(0.0480605899×(0.261598633339×0.1283763136))
= RM 1.0509697235


vi.

Intrinsic Invested Capital Value FYE 2024
(Economic Spread Model, formulated by the Nobel Prize Laureates Franco Modigliani and Merton Miller)

= Economic Value Added (EVA) Per Share

= Economic Spread × Invested Capital Per Share

= (ROIC - WACCfinbox) × Invested Capital Per Share

= (26.1598633339-9.3)×0.183718811

= RM 3.0974740453

finbox. com/XKLS:INFOTEC/models/wacc/


vii.

Geometric Mean of Intrinsics
= (0.902949624×1.2572584635×0.6396591957×1.0509697235×3.0974740453)^(1÷5)
= RM 1.1877551539


viii.

Compared to the 10Y DCF Valuation by Finbox :

finbox. com/XKLS:INFOTEC/models


ix.

Compared to the Alphaspread DCF Valuation :

alphaspread. com/security/klse/infotec/dcf-valuation/base-case


x.

Note:

Significance of MoAT:

MoAT (ROA) ≤ 10%
= Lower Compounding Strength & Shorter Compounding Period

15% ≤ MoAT (ROA) ≤ 20%
= Strong Compounding Strength & Long Compounding Runway Period

MoAT (ROA) ≥ 25%
= Supreme Compounding Strength & Extraordinary Long Compounding Runway Period


xi.

Reference:

The Absolute Total Compound Investing Dharma 168:

stockbit. com/post/18380031