FIN223 Group Assignment

Stock Analysis Report

EUPE CORPORATION BERHAD
&
GD EXPRESS CARRIER BERHAD

Name: Tan Zhen Zune

UOW Student Number: 5611891
Inti Student Number: P14004772

Name: Khew Jing Xian

UOW Student Number: 5596592
Inti Student Number: p16007672
1.0 Abstract
This project analysis is to analyze out the better performance of stock between Eupe Corporation
and GD Express Carrier Berhad for the investors. In this analysis report, there are 3 methods used
to measure the stock performance - CAPM method, Beta and standard deviation. After the
analyzation, the result of GD Express is better than Eupe Corporation as the monthly return is
higher and the standard deviation are not go so high then market index.

2.0 Introduction
GD Express Carrier Berhad
GD Express was established in year 1997, is a Malaysia-based investment holding company. They
provide carrier service of international and domestic markers. In year 2000, Mr Teong Teck Lean
entry as controlling stakeholder. The business model of GD Express had been revised by Mr Teong
and his team and managed to turn it profitable. GD Express is the first local carrier delivery
company to acquire ISO 9001 : 2000 (Quality Management System) in year 2003. In year 2005,
GD express successfully listed on the Ace Market of Bursa Malaysia with 2 main operating
segments, namely, Logistics and Carrier Delivery. GD express managed to entry Singapore Market
and started their operation in year 2007. Besides that, GD express also the first local carrier
company who provide express delivery service for document and parcel in year 2008. In year 2013,
GD express successfully entered to Main Market of Bursa Malaysia. Vision of GD Express is a
team of caring and passionate people. Mission is to deliver the most trusted and professional
express carrier services in the countries we operate. GD express did provide carrier delivery
services to over 210 foreign countires. GD express owned a total of 831 trucks & vans and three
thousand plus staff to run its business as of year 2017. (Gd Express,2018)
Eupe Corporation
Eupe Corporation Berhad was established in year 1986 by Dato’ Paduka Beh Heng Seong and
Dato’ Wira Tajudin bin Haji Hashim. Euro Corporation has become one of trusted township and
successful developer since that time. The company constructed over twenty thousand houses in
Kedah, located at northern part of Malaysia. Eupe Corporation first project was the development
of Taman Ria, with construction of 3,376 houses in year 1986, which was one of the largest
housing projects in Northern Malaysia. Eupe Corporation focus more on develop high quality
house as new directions. There is few landmark projects like Sky Residences, the first leadership
in energy and environmental design certified building in Malaysia like the Somerset in Kedah,
Astana Parkhomes and Hallmark Residences in Penang and the first high-rise luxury residential
development in Sungai Petani. Eupe Corporation also the operator and owner of Cinta Sayang
Golf and Country Resort, one of most recognised and largest resort in northern part of Malaysia.
Vision of the company is Eupe aims to become the most trusted brand in every sector in which it
operates. Mission is offering the best product and customer service and delivering on our promises
and undertakings to all our stakeholders. Eupe Corporation is a publicly listed company since July
year 1997.
3.0 Methodology

There are few methods and formula to analyse the stocks and market index.

1) Calculation for average monthly return:

A simple average return (arithmetic mean) that is calculated by summing the returns for

each period. (Evestment, 2018)

2) Calculation for standard deviation:

Standard deviation is applied to the annual rate of return of an investment to measure the

investment's volatility. (Investopedia, 2018)

3) Calculation for Beta:

Beta is a numeric value that measures the fluctuations of a stock to changes in the overall stock

market. (Bennett, 2018)

4) Calculation for CAPM: The Capital Asset Pricing Model (CAPM) is a model that describes the

relationship between expected return and risk of investing in a security. (CFI, 2018)
5) Calculate for portfolio return and Beta: Using the given weightage of 50/50.
4.0 Result and Discussion

EUPE.KL - EUPE COPORATION BERHAD

Average Monthly Return Average Monthly Return

Year (EUPE.KL) (KLCI)
2012 0.418% 0.7440%
2013 3.758% 1.0065%
2014 0.241% -0.5108%
2015 -0.177% -0.1448%
2016 0.300% -0.2145%
2017 2.161% 1.0285%

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%
2012 2013 2014 2015 2016 2017
-0.50%

-1.00%

Average Monthly Return Average Monthly Return (KLCI)

Above table are showing the average monthly return of EUPE Corporation Berhad and KLCI from
2012 to 2017. Based on the chart and table, the highest average monthly return of EUPE
Corporation Berhad was at year 2013 (3.758%) and decrease since 2014 and dropped below the
market index’s return on the year 2015 (-0.177). After year 2015, the average monthly return start
recovers and slowly get higher then market index’s return on year 2017. Based on the percentage
of the average monthly return of Eupe Corporation Berhad compare to the market index’s return,
the investors are getting the higher return than what was expected in the market.
0078.KL - GD EXPRESS CARRIER BERHAD

Average Monthly Return

Average Monthly Return (KLCI)
Year (GD EXPRESS)
0.7440%
2012 3.442%
1.0065%
2013 7.584%
-0.5108%
2014 6.448%
-0.1448%
2015 41.869%
-0.2145%
2016 0.212%
1.0285%
2017 4.582%

45.00%

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2012 2013 2014 2015 2016 2017
-5.00%

Average Monthly Return Average Monthly Return (KLCI)

Above table are showing the average monthly return of GD Express Carrier Berhad and KLCI
from 2012 to 2017. Based on the chart and table, the highest average monthly return of GD Express
Carrier Berhad was at year 2015 (41.869%) and decrease until year 2016 and get back again on
year 2017. By the way, the overall performance of GD Express Carrier Berhad is totally above
than the market index’s return and the investors are getting the high return since 2012-2017.
 Year Standard Deviation (EUPE) Standard Deviation (KLCI)
0.046
2012 0.0198
0.127
2013 0.0244
0.065
2014 0.0177
0.054
2015 0.0297
0.040
2016 0.0198
0.086
2017 0.0171

0.14

0.12

0.1

0.08

0.06

0.04

0.02

0
2012 2013 2014 2015 2016 2017

Standard Deviation (EUPE) Standard Deviation (KLCI)

Above table are showing the standard deviation of EUPE Corporation and KLCI from 2012 to
2017. Its showed that the standard deviation of Eupe Corporation is totally higher than market
index’s Standard deviation. That is reasonable for the investors to invest for high return because
its higher risk too. Based on the chart and table, the highest standard deviation of Eupe Corporation
was at year 2013 (0.127) and start to decrease from year 2013 to year 2016 and get high again on
year 2017. Although the standard deviation of EUPE have drop to nearly market index’s standard
deviation, but it still considers risky because higher than market index. However, the overall
performance of Eupe Corporation are still consider good, because the average monthly return of
Eupe had a greater percentage than the market index.
 Year Standard Deviation (GD Express) Standard Deviation (KLCI)
0.075
2012 0.0198
0.160
2013 0.0244
0.125
2014 0.0177
1.379
2015 0.0297
0.091
2016 0.0198
0.146
2017 0.0171
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2012 2013 2014 2015 2016 2017

Standard Deviation (GD Express) Standard Deviation (KLCI)

Above table are showing the standard deviation of GD Express and KLCI from 2012 to 2017. Its
showed that the standard deviation of GD Express is totally higher than market index’s Standard
deviation. That is reasonable for the investors to invest for high return because its higher risk too.
Based on the chart and table, the highest standard deviation of GD Express was at year 2015(1.379)
and start to decrease from year 2015 to year 2016 and get high again on year 2017. Although the
standard deviation of GD Express has nearly standard deviation with market index’s standard
deviation, but between year 2014 to year 2016, the standard deviation of GD Express is very high,
it’s consider risky for the investors too because higher than market index. However, the overall
performance of GD Express Corporation are very good, because the average of standard deviation
of GD Express are very close to market index standard deviation and the average of monthly
return of GD Express had a greater percentage than the market index too.
Average Monthly Return

YEAR EUPE.KL 0078.KL FBM KLCI

2012 0.42% 3.44% 0.74%
2013 3.76% 7.58% 1.01%
2014 0.24% 6.45% -0.51%
2015 -0.18% 41.87% -0.14%
2016 0.30% 0.21% -0.21%
2017 2.16% 4.58% 1.03%

AVERAGE MONTHLY RETURN

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
2012 2013 2014 2015 2016 2017
-10.00%
EUPE.KL 0078.KL FBM KLCI
 YEAR EUPE.KL 0078.KL FBM KLCI
0.046 0.075 0.0198
2012
0.127 0.160 0.0244
2013
0.065 0.125 0.0177
2014
0.054 1.379 0.0297
2015
0.040 0.091 0.0198
2016
0.086 0.146 0.0171
2017
1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2012 2013 2014 2015 2016 2017

EUPE.KL 0078.KL FBM KLCI

Based on the chart and the table shows that, comparison of Eupe Corporation and GD Express,
GD Express has a better performance than Eupe Corporation. Because the average monthly
return of GD Express are higher than Eupe Corporation. Although the standard deviation of GD
Express is higher than Eupe Corporation, but the more the risk of the share, the higher the
return is.
Conclusion
In conclusion, there are 3 methods that use to measure the stocks - Beta, standard deviation,
CAPM. Both stocks that mentioned just now Eupe Corporation and GD Express, both consider
performed good in this 5 years. But if the investors prefer low risk stock, then Eupe Corporation
is the better choices. But if the investors prefer high return, the GD express is highly
recommended.

(1370 words)
Reference

EUPE.KL – EUPE Corporation Berhad.

https://finance.yahoo.com/quote/EUPE.KL/history?period1=1325260800&period2=1517328000
&interval=1mo&filter=history&frequency=1mo [accessed 10/10/2018].

0078.KL – GD Express Carrier Berhad.

https://finance.yahoo.com/quote/0078.KL/history?period1=1325260800&period2=1517328000
&interval=1mo&filter=history&frequency=1mo [accessed 10/10/2018]

Evestment. (2018). Absolute Return Measures. [Online] Available at:

https://www.evestment.com/resources/investment-statistics-guide/monthly-return-arithmetic-
mean/ [Accessed 4 October 2018].

Investopedia. (2018). Expected Return, Variance And Standard Deviation Of A Portfolio.

[Online] Available at: https://www.investopedia.com/walkthrough/corporate-finance/4/return-
risk/expected-return.aspx [Accessed 4 October 2018].

Bennett. (2018). Definition of 'Beta'. [Online] Available at:

https://economictimes.indiatimes.com/definition/beta [Accessed 4 October 2018].

Adam. (2016). GD Express Berhad. [Online] Available at: https://prezi.com/eow1ivmjifh7/gd-

express-berhad/ [Accessed 4 October 2018].

GD Express. (2018). History & Operations. [Online] Available at:

https://www.gdexpress.com/malaysia/corporate-info/history-operations/ [Accessed 4 October
2018]

CFI. (2018). Capital Asset Pricing Model (CAPM)[Online] Available at:

https://corporatefinanceinstitute.com/resources/knowledge/finance/what-is-capm-
formula/[Accessed 4 October 2018].