compoundingeffect

Eden Inc. Berhad operates across three main business segments, each contributing to its diversified revenue stream:
? 1. Energy Components
- Core activity: Operating power plants as an independent power producer.
- Revenue contribution: This is Eden’s largest segment, generating approximately RM149.74 million in FY2024.
- Growth: Recorded a 17.14% year-on-year increase, indicating strong performance and demand.
?️ 2. Food, Beverage, Rental & Tourism
- Scope: Includes Eden Catering (institutional catering), restaurant operations, and tourism assets like Underwater World Langkawi.
- Recent developments: Secured a RM20 million contract with Malaysia’s Ministry of Health for institutional catering, boosting its F&B profile.
- Revenue: Contributed RM28.37 million in FY2024, with a 17.78% growth rate.
? 3. Manufacturing
- Status: Currently not a significant revenue contributor.
- Note: No recent financial data reported, suggesting limited or paused operations.

Eden’s strategic pivot toward institutional catering and tourism complements its stable energy base.

2 weeks ago


compoundingeffect

Valuing Eden Inc. Berhad primarily as an independent power producer (IPP) makes strategic sense, especially given its segment dominance and financial metrics:
⚡ Why IPP Valuation Fits Eden
- Energy segment dominance: Contributed ~RM149.74 million in FY2024, over 95% of total revenue.
- Stable cash flows: Free cash flow of RM12.35 million and EV/FCF ratio of 2.97, indicating undervaluation relative to cash generation.
- Low gearing: Debt-to-equity ratio of just 0.04, which is rare for utility players.
- High earnings yield: At 115.71%, Eden’s earnings relative to market cap are unusually strong.
- EV/EBITDA of 3.29: Suggests Eden is trading below typical utility multiples, which often range from 6–10x.