APPENDIX
1.0 Introduction
2.0 Company Profile
2.1 Magna Prima Berhad
2.2 Naim Holding Bhd
2.3 Carlsberg Brewery Malaysia Bhd
2.4 1 Utopia Bhd
2.5 COASTAL-CE: CW COASTAL CONTRACTS BHD
3.0 Analysis SWOT
4.0 Result and Finding
4.1 Expected Return
4.2 Variance
4.3 Standard deviation
4.4 Coefficient of Variance
4.5 Covariance
4.6 Correlation
4.7 Beta
4.8 CAPM
5.0 Conclusion
6.0 Recommendation
1.0 INTRODUCTION
Financial Management means the efficient and effective management of money (funds)
in such a manner as to ensure that a business or organization achieves the set financial goals.
It includes how to rise the capital, how to allocate it capital budgeting. Not only about long term
budgeting but also how to allocate the short term resources like current assets. Hence, financial
management also provides decisions that have to be made together with the goal being to
create wealth and economic value of the firm.
For this subject, students are required to do a project on Malaysian Capital Market and
Share Market trading which are related on investment made by a firm. Other than that, students
also have to apply their knowledge on how to calculate and measure the investment whether a
single investment or collection of investment (portfolio). This project also become as a part of
assessment within learning this subject and all students are compulsory to do this project.
In order to do this project, we had been asked to collect the closing daily share prices of
five (5) companies from the main market and KLCI for one (1) year, 2013. All information must
be obtained from reliable sources. Each group must propose their companies name that to be
approved before continue with collecting data.
After we collect all the data, we have to analyse and measuring all the data gathered as
well as make a decision making based on that data. The purposes by doing this project are to
ensure that the students apply all the knowledge that have learned on this subject and to
ensure whether the students understand what they have learned on each topics especially on
Capital Market. The objectives by doing this project are:
To develop student understanding on Malaysia Capital Market and Share Market
Trading
To help the students to enhance their analytical and creativity skills in problem solving
Therefore, each student should utilize this opportunity by giving full of commitment in the
preparation of the report for the project. The students also should apply all the knowledge that
had learned and used it in preparing this report of the project.
2.0 COMPANY PROFILE
2.1 MAGNA PRIMA Berhad
Company Overview
Magna Prima Berhad (MPB) is a Malaysia-based company engaged in investment holding and
provision of management services. The Company operates in four segments: properties,
construction and engineering, trading and others. Properties are engaged in property
development. Construction and Engineering is engaged in civil engineering and building
construction. Trading is engaged in manufacturing and trading in ready-mixed concrete. Others
is engaged in investment holding and property management services. MPBs product range
includes landed residential properties in addition to its commercial and mixed developments. On
March 3, 2011, Magna City Development Sdn Bhd completed the acquisition of 2 parcels of
freehold land, measuring a total of 10.38-acres, in Jalan Kuching from Muafakat Baru Sdn Bhd.
During the year ended December 31, 2010, the Company acquired the remaining 10% interest
not owned by the Company in Pembinaan Contamaju-Infocast Sdn. Bhd. (PCI).
Address
Lot No. C-G11 & C-G12 Block C, Jalan Persiaran Suria Petaling Jaya
Selangor Darul Ehsan, 47810
Malaysia
+60-3-78015505 (Phone)
+60-3-78015470 (Fax)
Website: http://www.magnaprima.com
Directors / Management Team
Yoke Ping Yuen (Company Secretary)
Mohamad Rizal Bin Abdullah (Executive Director)
Rahadian Mahmud bin Mohammad Khalil (Executive Director)
Yek Hui Lee (Executive Director)
Adzmi Bin Abdul Wahab (Independent Non-Executive Chairman of the Board)
Sazali Bin Saad (Independent Non-Executive Director)
Ah Leng Ong (Independent Non-Executive Director)
Manjit Singh (Independent Non-Executive Director)
2.2 NAIM HOLDINGS BHD
Company Overview
Naim Holdings Berhad is an investment holding company. The Company, through its
subsidiaries, operates in three segments: integrated property developments, which includes
residential, commercial and industrial properties with infrastructure and public amenities;
contracting of construction, civil engineering, oil and gas and infrastructure projects, and oil and
gas services through its investment in Dayang Enterprise Holdings Bhd. Other activities include
the manufacture and sale of construction materials, provision of sand extraction and land filling
services, property investment holdings, as well as quarry operation. The Company is the
holding company for its 100% owned subsidiary, Naim Land Sdn Bhd (NLSB), which is primarily
involved in property development and construction. On February 11, 2010, its subsidiary, Naim
Overseas Sdn. Bhd. acquired 99.99% interest in Naim Quarry (Fiji) Limited.
Address
9th Floor, Wisma Naim 2 1/2 Mile Rock Road Sarawak
Kuching, 93200
Malaysia
+60-82-411667 (Phone)
+60-82-233667 (Fax)
Website: http://www.naim.com.my
Directors / Management Team
Abdul Hamed Bin Sepawi (Chairman of the Board)
Abet Bin Mataim (Chief Financial Officer)
How Sieng Wei (Chief Operating Officer, Executive Director)
Abdul Jalal Bin Abdul Rahim (Group Credit Controller)
Teck Hock Kho (Company Secretary, Senior Director - Corporate Services & Human
Resources)
Siu Lian Bong (Company Secretary)
Hasmi Bin Hasnan (Managing Director, Executive Director)
Hasni Bin Hasnan (Executive Director, Senior Director - Business Development & Policy)
Sulaihah Binti Maimunni (Executive Director, Senior Director - Managing Director's Office)
Hoi Chuang Kueh (Executive Director, Senior Director - Trading & Machineries)
2.3 CARLSBERG BREWERY MALAYSIA BHD
Company Overview
Carlsberg Brewery Malaysia Berhad is a Malaysia-based company engaged in the production of
beer, stout, shandy and non-alcoholic beverages for distribution in the Malaysian market and for
Export. It is also involved in the marketing and distribution of beer, stout, shandy and non-
alcoholic beverages. The Company distributes its products under the brand names of
Carlsberg, Tuborg, Corona, Budweiser, Stella Artois, Hoegaarden, Carlsberg Gold, Carlsberg
Special Brew, SKOL, Danish Royal Stout, Jolly Shandy and Nutrimalt among orthers. The
Company has three fully owned subsidiaries: Carlsberg Marketing Sdn. Bhd., Euro Distributors
Sdn. Bhd., Carlsberg Singapore Pte. Ltd. and one owned at 70%: Luen Heng F & B Sdn. Bhd.
Address
No. 55 Persiaran Selangor Section 15 Shah Alam
Selangor Darul Ehsan, 40200
Malaysia
+60-3-55226688 (Phone)
+60-3-55191931 (Fax)
Website: http://www.carlsbergmalaysia.com.my
Directors / Management Team
Yoong Fah Lew (Chief Financial Officer, Company Secretary)
Soren Ravn (Managing Director, Executive Director)
Voon Loong Chin (Deputy Managing Director, Executive Director)
Sim Huan Tan (Sales Director)
Boon Lan Loh (Human Resource Director)
Gunnar Hepp (Supply Chain Director)
Swee Hwang Yap (Business Development Director)
Siang Chin Lim (General Manager - Carlsberg Singapore)
Chee Whye Soh (General Manager LHFB)
Say Chong Lim (Independent Non-Executive Chairman of the Board)
2.4 1 UTOPIA BERHAD
Company Overview
Tejari Technologies Berhad (TEJARI) is an investment holding company. TEJARI is engaged in
the research, design and development of application specific electronic controller system for
electro-hydraulic systems for various industrial automation. The principal activities of its
subsidiaries are investment holding, designing, building and assembling hydraulic automation
system, trading and servicing of hydraulic and pneumatic systems, components, engineering
equipment and mechanical parts. Its products include hydraulic cylinders, power packs,
cartridge valves and manifold blocks, filtration and coalescer system, systems, biodiesel plant,
winches, x-lifts, hoses and fittings, piping, fittings and clamps, and o-rings and seals. TEJARI
distributes its products within Malaysia and to Australia, Indonesia, the Philippines, Singapore
and Thailand. TEJARI's subsidiaries are Tejari Sdn. Bhd., Tejari Controls (JB) Sdn. Bhd., Tejari
Controls Sdn. Bhd. and Tejari Hoseal Solutions Sdn. Bhd.
Address
51-21-A, Meenara BHL Bank Jalan Sultan Ahmad Shah
Penang, 10050
Malaysia
+60-04-2276888 (Phone)
+60-04-2298118 (Fax)
Website: http://www.tejari.com.my/
Directors / Management Team
Tuck Wayn Chong (Chief Operating Officer)
Peng Loon Lee (Company Secretary)
Yoong Yoong Ooi (Company Secretary)
Boon Long Chin (Managing Director, Executive Director)
Chai Huat Ooi (Executive Director)
Kok Hok Ng (Independent Non-Executive Director)
Ooi Jin Tan (Independent Non-Executive Director)
2.5 COASTAL-CE: CW COASTAL CONTRACTS BHD
Company Overview
Coastal Contracts Bhd is a Malaysia-based investment holding company. The Company,
through its subsidiaries, operates in two segments: vessels manufacturing and repairing
services, which include fabrication and sale of marine transportation vessels and provision of
ship repairs and maintenance services, and vessels chartering and equipment hire, which
include the provision of vessels transportation and equipment hiring services. Its subsidiaries
are Bonafile Shipbuilders & Repairs Sdn. Bhd., Coastal Transport (Sandakan) Sdn. Bhd.,
Coastway Transport Sdn. Bhd., Seri Modalwan Sdn. Bhd., Pleasant Engineering Sdn. Bhd.,
Coastal Marine Pte. Ltd., Coastal Marine Pte. Ltd., Coastal Offshore (Labuan) Pte. Ltd.,
Asiapride Sdn. Bhd.Thaumas Marine Ltd and Ace Capital Pte. Ltd.
Address
Block G, Lot 3B Bandar Leila W.D.T No 259
Sandakan, 90009
Malaysia
+60-89-616263 (Phone)
+60-89-616654 (Fax)
Web Site: http://www.coastalcontracts.com
Directors / Management Team
Chin Heng Ng (Executive Chairman of the Board)
Wei Kam Luk (Company Secretary)
Chin Keuan Ng (Executive Director)
Chin Shin Ng (Executive Director)
Zainal Bin Rajan (Independent Non-Executive Director)
Cheong Kaw Kwan (Senior Independent Non-Executive Director)
Thian Sang Loh (Independent Non-Executive Director)
3.0 ANALYSIS SWOT
Strengths Weaknesses
The Group is one of the leading premier Sometimes, customers can cancel their
vessel fabricators in Malaysia. Also, it is an order for new ships, especially during
established vessel chartering services global economy slow down. However,
provider in Southeast Asia, with long term currently no cancellation of orders is
customers chartering its vessels to carry significantly affecting the financial
coals, iron ore, metal scraps, stones, crude performance of Coastal Contracts.
oil, etc. It also offers maintenance, repair
and overhaul services to the Royal Navy,
Marine Police and Malaysian Maritime
Enforcement Agent, thus giving it a steady
stream of income from this segment.
Opportunities Threats
As there are not many shipbuilding and The Group's main local competitor are
marine transportation players in this Oceanic Engineering Sdn Bhd (shipbuilding),
region, there will continue to be demand public listed Boustead Heavy Industries
for its services, especially from Indonesia. Corporation Bhd (formerly PSC Industries
Bhd) (heavy engineering and construction,
shipbuilding and ship repair, commissioning
of offshore installations for the oil and gas
industries) and Weidan Marine Services Sdn
Bhd (shipbuilding).
COASTAL CONTRACT BHD
CARLSBERG BREWERY MALAYSIA BHD
Strengths Weaknesses
Carlsberg can barriers of market entry Carlsberg have a small business unit that
from come to their market business and cannot help to their organization to
provided the monetary assistance for produce there product and services.It
their organization.The Carlsberg a strong also have a high loan rates are possible
their business because there is a will be occur.This company have a lower
domestic market. future competition and future profitability
to their organization.
Opportunities Threats
Carlsberg have a opportunity to make a Carlsberg will loss some financial capacity
new products and services to there because of the rising cost of raw material
business.Their have a venture capital to and increasing costs products and
develop a new market and new services.The global economy also threats
acquisitions.Their also can growth rates Carlsberg because of the changing to the tax
for their business and make some and price of products and services.The
profitability. external business risks to the Carlsberg
organization.
MAGNA PRIMA BHD
Strengths Weaknesses
This group have a indicates good short- Unusual market activity and weakness in
term financial the global stock market
Opportunities Threats
Their carriers numerous potential Competitive and technological threats are
business and the organization can highlighted.
explore and exploit are size up and its
growth
1 UTOPIA BERHAD
Strengths Weaknesses
Promotion price every festive season and There have a high demand price in the
have fair price shop in various categories market
of product. It also providing services to
the customer and have a better health
and safety of product.
Opportunities Threats
There have a pair trading opportunities This can be increasing the costs of the
which is enriching lives unique and products which are will compete against the
innovative ways of the products and an competitor and stay up to date the major
exceptional value. development that may affecting the business
activities.
NAIM HOLDING BHD
Strengths Weaknesses
Naim Holding have a strategic to Weak in performance by property division
accessibility into the business with and the share price and accumulate on
development or declined are analyzed expected weakness
and presented in company objectively
and transform operation of profitability
Opportunities Threats
Explore the medium and long-term Social and political privileges are under
problems and the shareholder value and threats and the competitive and
creating the career technological of threats are highlighted.
4.0 RESULT AND FINDING
4.1 Expected Return
Expected return is calculated as the weighted average of the likely profits of the assets in the
portfolio, weighted by the likely profits of each asset class. Expected return is calculated by
using the following formula:
Written another way, the same formula is as follows: E(R) = w1R1 + w2Rq + ...+ wnRn
Expected
Company Return
Magna Prima Berhad 0.0026
Naim Holdings Berhad 0.0035
Carlsberg Brewery Malaysia Berhad (0.0000)
1 Utopia Berhad 0.0037
Coastal-Ce: Cw Coastal Contracts
Bhd 0.9986
KLCI 0.9964
TOTAL 2.0049
Based on the graph above, the first part of this calculation is return (k). Based on this
category, I would choose Coastal-Ce:Cw Coastal Contracts Bhd because the company had
gained the higher return than other company which is Coastal-Co 99.86%. As for your info,
other company return such as Magna Prima Berhad is 0.26%, Naim Holdings Berhad is 0.35%,
Carlsberg is 0% and 1 Utopia Berhad is 0.37%. We would choose high return because the
company will run the business in a good way and they have a lot of business plan to make sure
that their company will not get the lower return for their company. The higher return the
company will get the good performance that the company will go through.
4.2 Variance
Variance (2) is a measure of the dispersion of a set of data points around their mean value. In
other words, variance is a mathematical expectation of the average squared deviations from the
mean. It is computed by finding the probability-weighted average of squared deviations from the
expected value. Volatility is a measure of risk, so this statistic can help determine the risk an
investor might take on when purchasing a specific security.
Company Variance
Magna Prima Berhad 0.0014
Naim Holdings Berhad 0.0009
Carlsberg Brewery Malaysia Berhad 0.0002
1 Utopia Berhad 0.0065
Coastal-Ce: Cw Coastal Contracts Bhd 0.0014
KLCI 0.0006
TOTAL 0.0110
The other part of the calculation of the company performance is due to variance of each
company. The higher variance between these five companies is 1 Utopia Berhad which is
0.0065. The variance of other company is Magna Prima Bhd 0.0014, Naim Holding Bhd 0.0009,
Carlsberg Bhd 0.0002, and Coastal Co. Bhd 0.0014. Magna Prima Bhd and Coastal Co. Bhd
have a same variance and they are the second highest variance in these calculations. If the
company has a high variance, the company will go through a good performance in business,
and financial management. A small variance indicates that the data points tend to be very close
to the mean (expected value) and hence to each other, while a high variance indicates that the
data points are very spread out from the mean and from each other.
4.3 Standard Deviation
Standard deviation can be defined in two ways:
1. A measure of the dispersion for a set of data from its mean. The more spread apart the
data, the higher the deviation. Standard deviation is calculated as the square root of
variance.
2. In finance, standard deviation is applied to the annual rate of return of an investment to
measure the investment volatility.
Company Standard Deviation
Magna Prima Berhad 0.0374
Naim Holdings Berhad 0.0294
Carlsberg Brewery Malaysia Berhad 0.0154
1 Utopia Berhad 0.0805
Coastal-Ce: Cw Coastal Contracts Bhd 0.0377
KLCI 0.0244
TOTAL 0.2248
STANDARD DEVIATION
0.0900
0.0800
0.0700
0.0600
0.0500
0.0400
0.0300
0.0200
0.0100
0.0000
As for standard deviation part the lowest standard deviation between these five
companies is Carlsberg Brewery Malaysia Berhad which is 0.0154. The other standard variance
for each company is Magna Prima Berhad is 0.0374, Naim Holding Berhad is 0.0294, 1 Utopia
Berhad is 0.0805 and Coastal Co. is 0.0377. In this case, the standard deviation measures how
concentrated the data are around the mean, the more concentrated, the smaller the standard
deviation. Basically, a small standard deviation means that the values in a statistical data set
are close to the mean of the data set, on average, and a large standard deviation means that
the values in the data set are farther away from the mean, on average.
4.4 Coefficient of Variation
A statistical measure of the dispersion of data points in a data series around the mean. It is
calculated as follows:
The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a
useful statistic for comparing the degree of variation form one data series to another, even if the
means are drastically different from each other. In the investing world, the lower the ratio of
standard deviation to mean return, the better your risk-return trade off.
Company Coefficient of Variation
Magna Prima Berhad 14.2920
Naim Holdings Berhad 8.2900
Carlsberg Brewery Malaysia Berhad (580.7783)
1 Utopia Berhad 21.7936
Coastal-Ce: Cw Coastal Contracts Bhd 0.0377
KLCI 0.0245
TOTAL (536.3404)
COEFFICIENT OF VARIATION GRAPH
100.0000
0.0000
(100.0000)
(200.0000)
(300.0000)
(400.0000)
(500.0000)
(600.0000)
(700.0000)
As for the the coefficient of variation (CV). In the investing world, the coefficient of
variation allows you to determine how much volatility (risk) you are assuming in comparison to
the amount of return you can expect from your investment. The lower of coefficient of variation
is Carlsberg Brewery Malaysia Berhad which is (580.7783) lower than the other company
which is Magna Prima Berhad 14.2920, Naim Holding Berhad 8.2900, 1 Utopia Berhad 21.7936
and Coastal Co. 0.3377. The lower the ratio of standard deviation to mean return, the better the
risk returns trade off. If the expected return in the denominator of the calculation is negative or
zero, the ratio will not make sense.
4.5 Covariance
Covariance is a measure of how much two random variables change together. If the greater
values of one variable are correspond with the greater values of the other variable and the
same holds for the smaller value.
Carlsbe
rg Coastal
Naim Brewer -Ce: Cw
Holdin y 1 Coastal
Magna gs Malaysi Utopia Contra
Prima Berha a Berha cts Bhd
Company Berhad d Berhad d KLCI
(0.000 0.000
Magna Prima Berhad 0.0002 0.0000 1) 0.0002 1
(0.000 0.000
Naim Holdings Berhad 0.0001 0) 0.0001 2
Carlsberg Brewery Malaysia (0.000 (0.000 0.000
Berhad 0) 0) 0
0.000
1 Utopia Berhad 0.0000 1
Coastal-Ce: Cw Coastal 0.000
Contracts Bhd 1
As Covariance of Magna company compared to Naim Holding and Coastal Co. is
0.0002% which is the 2 of the is the highest compared to others which is Carlsberg 0.0000%, 1
Utopia (0.0001) and KLCI 0.0001%. As the result of Naim Holding compared to market stock is
0.0002% which is highest from others. However, for Carlsberg show no improvement at all as
compared to other all of them is 0.0000%. In addition, for 1 Utopia company, its shows the
market stock performs better than the company. This measure is to processing financial assets
that provides returns and have high covariance with each other.
4.6 Correlation
Correlation is computed into what is known as the correlation coefficient, which ranges between
+1 and -1. Perfect positive correlation implies that as one security moves either up or down. As
for perfect negative correlation means that f one security moves in either direction the security
that is perfectly negatively correlated will move in the opposite direction. If correlation is 0 the
there is no correlation.
Carlsbe
rg Coastal
Magn Naim Brewer -Ce: Cw
a Holdin y 1 Coastal
Prima gs Malaysi Utopia Contra
Berha Berha a Berha cts Bhd
Company d d Berhad d KLCI
(0.000 0.000
Magna Prima Berhad 0.1693 0.0000 1) 0.0002 1
(0.006 0.239
Naim Holdings Berhad 0.2296 4) 0.1146 1
Carlsberg Brewery Malaysia (0.021 (0.0101 0.091
Berhad 4) ) 1
0.055
1 Utopia Berhad 0.0042 8
Coastal-Ce: Cw Coastal 0.059
Contracts Bhd 9
CORRELATION
Magna Prima Berhad Naim Holdings Berhad
Carlsberg Brewery Malaysia Berhad 1 Utopia Berhad
Coastal-Ce: Cw Coastal Contracts Bhd
6.0000
5.0000
4.0000
3.0000
2.0000
1.0000
0.0000
1 2 3 4 5
(1.0000)
For Correlation of Magna company compared to Naim Holding is 0.1693% which is the
highest compared to others which is Carlsberg 0.0000%, 1 Utopia (0.0001), Coastal Co is
0.0002 and KLCI 0.0001%. As the result of Naim Holding compared to market stock is 0.2391%
which is highest from others. However, for Carlsberg, the market stock shows the highest
performance which is 0.0911%. In addition, for 1 Utopia company, its shows the market stock
performs better than the company. Lastly the comparison between Coastal Co. with KLCI
shows the correlation is lower at 0.0599%.
4.6 Beta
Beta is a measure of the risk arising from exposure to the general market movement. The
market portfolio of all investable assets has a beta of exactly 1. Beta that below 1 can indicate
either an investment with lower risk than the market or risk investment whose price movements
are not highly correlated with the market.
Company BETA
0.214
Magna Prima Berhad 8
0.287
Naim Holdings Berhad 5
Carlsberg Brewery Malaysia 0.057
Berhad 4
0.183
1 Utopia Berhad 9
Coastal-Ce: Cw Coastal 0.092
Contracts Bhd 3
0.835
TOTAL 8
BETA
0.3500
0.3000
0.2500
0.2000
0.1500
0.1000
0.0500
0.0000
The next one is Beta. Beta is used to calculate expected return of an asset based on market
returns. Thus the higher percentage the higher the return but also the higher the risk. As we
can see Naim Holding have the higher beta which is 0.2875 mean while others is Magna
0.2148, Carlsberg 0.0574, 1 Utopia 0.1839, and Coastal Co is 0.0923.
4.7 Capital Asset Pricing Model (CAPM)
The general idea behind CAPM is that investors need to be compensated in two ways: time
value of money and risk. The time value of money is represented by the risk-free (rf) rate in the
formula and compensates the investors for placing money in any investment over a period of
time. The other half of the formula represents risk and calculates the amount of compensation
the investor needs for taking on additional risk. This is calculated by taking a risk measure
(beta) that compares the returns of the asset to the market over a period of time and to the
market premium (Rm-rf).
WEIG BETA
COMPANY HT (X) (B) Bp
0.200 0.21 0.043 0.180
MAGNA 0 48 0 1 rfr
0.200 0.28 0.057
NAIM 0 75 5
CARLSBER 0.200 0.05 0.011
G 0 74 5
0.200 0.05 0.011
1 UTOPIA 0 74 5
0.200 0.05 0.011
COASTAL 0 74 5
0.200 0.09 0.018
KLCI 0 23 5
0.153
TOTAL 4
5.0 CONCLUSIONS
As conclusion, based on the calculation we found out that the first part of this calculation
is return (k). Based on this category, I would choose Coastal-Ce: Cw Coastal Contracts Bhd
because the company had gained the higher return than other company which is Coastal-Co
99.86%. As for your info, other company return such as Magna Prima Berhad is 0.26%, Naim
Holdings Berhad is 0.35%, Carlsberg is 0% and 1 Utopia Berhad is 0.37%. We would choose
high return because the company will run the business in a good way and they have a lot of
business plan to make sure that their company will not get the lower return for their company.
The higher return the company will get the good performance that the company will go through.
The other part of the calculation of the company performance is due to variance of each
company. The higher variance between these five companies is 1 Utopia Berhad which is
0.0065. The variance of other company is Magna Prima Bhd 0.0014, Naim Holding Bhd 0.0009,
Carlsberg Bhd 0.0002, and Coastal Co. Bhd 0.0014. Magna Prima Bhd and Coastal Co. Bhd
have a same variance and they are the second highest variance in these calculations. If the
company has a high variance, the company will go through a good performance in business,
and financial management. A small variance indicates that the data points tend to be very close
to the mean (expected value) and hence to each other, while a high variance indicates that the
data points are very spread out from the mean and from each other.
As for standard deviation part the lowest standard deviation between these five
companies is Carlsberg Brewery Malaysia Berhad which is 0.0154. The other standard variance
for each company is Magna Prima Berhad is 0.0374, Naim Holding Berhad is 0.0294, 1 Utopia
Berhad is 0.0805 and Coastal Co. is 0.0377. In this case, the standard deviation measures how
concentrated the data are around the mean, the more concentrated, the smaller the standard
deviation. Basically, a small standard deviation means that the values in a statistical data set
are close to the mean of the data set, on average, and a large standard deviation means that
the values in the data set are farther away from the mean, on average.
As for the coefficient of variation (CV). In the investing world, the coefficient of variation
allows you to determine how much volatility (risk) you are assuming in comparison to the
amount of return you can expect from your investment. The lower of coefficient of variation is
Carlsberg Brewery Malaysia Berhad which is (580.7783) lower than the other company which
is Magna Prima Berhad 14.2920, Naim Holding Berhad 8.2900, 1 Utopia Berhad 21.7936 and
Coastal Co. 0.3377. The lower the ratio of standard deviation to mean return, the better the risk
returns trade off. If the expected return in the denominator of the calculation is negative or zero,
the ratio will not make sense.
As Covariance of Magna company compared to Naim Holding and Coastal Co. is
0.0002% which is the 2 of the is the highest compared to others which is Carlsberg 0.0000%, 1
Utopia (0.0001) and KLCI 0.0001%. As the result of Naim Holding compared to market stock is
0.0002% which is highest from others. However, for Carlsberg show no improvement at all as
compared to other all of them is 0.0000%. In addition, for 1 Utopia company, its shows the
market stock performs better than the company. This measure is to processing financial assets
that provides returns and have high covariance with each other
For Correlation of Magna company compared to Naim Holding is 0.1693% which is the
highest compared to others which is Carlsberg 0.0000%, 1 Utopia (0.0001), Coastal Co is
0.0002 and KLCI 0.0001%. As the result of Naim Holding compared to market stock is 0.2391%
which is highest from others. However, for Carlsberg, the market stock shows the highest
performance which is 0.0911%. In addition, for 1 Utopia company, its shows the market stock
performs better than the company. Lastly the comparison between Coastal Co. with KLCI
shows the correlation is lower at 0.0599%.
Lastly, is Beta. Beta is used to calculate expected return of an asset based on market
returns. Thus the higher percentage the higher the return but also the higher the risk. As we can
see Naim Holding have the higher beta which is 0.2875 mean while others is Magna 0.2148,
Carlsberg 0.0574, 1 Utopia 0.1839, and Coastal Co is 0.0923.
6.0 RECOMMENDATIONS
Based on the information above, there are many recommendations that we have occur.
For example, the first conclusion is about return of the company, the company return is show
that the company had a good performance or bad performance in running their business. In
return of the company, the investor will invest for that company due to their return and
performance of their company towards their business. So, for the recommendation, the other
company should change their business planning, the way they manage the company and
others. The company also must do SWOT to make sure they know their strength and
weaknesses. From that changing, they will know why their company will get the lower return
than other company. So, they will wake up from earlier to make sure that their company will get
the high return for another month or year. The best part of manage the company is, when they
get a high return after they are hardworking to run the company business.
Therefore, we will see the performance of standard deviation of the company. In this
case, we would say that the good performance of the company is if the company had a high
standard deviation in their business. It means like, the higher the standard deviation, the better
the performance of the company, the lower the risk taken. So that, the company must increase
their performance, so they can increase their variance. If the variance of the company
increases, the standard deviation may be increase too. So, the main important is that the
company will manage their business in such a good way to make sure that they will get the
higher return in future.
The last recommendation that I will say is that the company that have a low return in
their business, the company will show effectively in their sales or production. So that, the
company will have one another goal, which is they want to achieve high expected return to
make sure that their company will make profitability not for the losses for the company. If they
have high return for their company, they also may increase their market share. So, they will
have the business that are managing well and have a good performance in future.
