Mapping the Future of Stocks with the Fundamental Mapper

Fundamentals 32. Unlocking Investment Opportunities with the Fundamental Mapper. This article is about anticipating the future. It covers using fundamental analysis in the context of the Fundamental Mapper to stay ahead of the market.

Investing is not just about assessing where a stock is today but about anticipating its future trajectory. The Fundamental Mapper provides a structured way to visualize a stock’s current standing based on business performance and investment risk. 

However, true investment success lies in identifying how a company’s fundamentals are evolving. This edge comes from positioning oneself ahead of the market before these changes are fully reflected in stock prices.

A stock does not stay in the same Fundamental Mapper’s quadrant forever. As a company grows or struggles, its financial health changes, which can move it to a different quadrant. Business fundamentals shift over time, and with them, so do intrinsic value and investment potential. 

The key question for investors is: If the stock price stays the same, will the company’s performance change enough to move it to a different quadrant?

By combining the Fundamental Mapper with in-depth fundamental analysis, you can anticipate quadrant shifts early and position yourself ahead of the market. The following sections will explore how to move beyond a simple visual analysis and demonstrate this approach through real case studies from the Bursa F&B sector.

Should you go and buy or sell them? Read my Disclaimer.

Contents

• Fundamental Mapper overview

• Going beyond a simple visual analysis

• The Key to Opportunity

• Case studies

• Conclusion

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Fundamental Mapper overview

Chart 1: Fundamental Mapper

The Fundamental Mapper is an app that evaluates business performance and investment risk, making complex analyses easier for everyone. It categorizes stocks into four quadrants. This offers a clear visual representation of both business performance and investment risk. Refer to Chart 1. For more insights, refer to “Unlocking the Power of the Fundamental Mapper” 

Going beyond a simple visual analysis

The Fundamental Mapper uses data from the last six years to place stocks in quadrants. However, stock positioning is not set in stone. To make informed investment decisions, investors must assess whether a company’s future will be the same, better, or worse than its past.

A company’s quadrant placement can shift as fundamentals evolve. Investors should analyse factors such as revenue trends, return on capital, and free cash flow generation to anticipate these movements.

Goldmine: Can the Performance Sustain?

A stock in the Goldmine quadrant enjoys both strong business performance and low investment risk. However, maintaining this position is not guaranteed. The crucial task is to assess whether its financial strength and competitive advantages will persist.

• Is the return on capital sustainable? A company that maintains or improves its return on capital ensures long-term profitability.

• Are revenue and earnings growing consistently? A stable upward trend in revenue and earnings suggests enduring demand and pricing power.

• Is free cash flow generation robust? A company that consistently converts earnings into cash can reinvest for future growth or return value to shareholders.

A business that continues to exhibit these qualities will remain in the Goldmine quadrant or even improve its valuation, making it a solid long-term investment.

Gem: Will a Business Performance Surge Increase Intrinsic Value?

Stocks in the Gems quadrants have strong business fundamentals but appear overvalued based on their current intrinsic value. The key to investing in a Gem is determining whether its business performance will improve so dramatically that the intrinsic value increases substantially. The stock is then a bargain at its current price.

• Are there underappreciated growth drivers? Expanding into new markets, launching new products, or capitalizing on industry trends can accelerate growth.

• Can margins expand significantly? Pricing power, cost efficiencies, or economies of scale can lead to higher profitability.

• Will free cash flow growth outpace expectations? A company with accelerating free cash flow can command a higher intrinsic value.

If these catalysts materialize, the stock's intrinsic value rises, reducing investment risk and potentially moving it into the Goldmine quadrant.

Turnaround: Can It Become a Goldmine?

Stocks in the Turnaround quadrant have weak business performances but are trading at significant discounts. The question is whether their performance can improve enough to move them into the Goldmine quadrant.

• Is there a structural change in the industry? Shifts in regulation, technology, or market dynamics can create opportunities for struggling companies.

• Are operational improvements visible? Cost restructuring, efficiency gains, or new management strategies could drive better performance.

• Is there evidence of financial stability? Improving profit margins, reducing debt, or returning to positive cash flow are indicators of a successful turnaround.

When these elements align, a Turnaround stock may shift into the Goldmine quadrant, presenting an excellent investment opportunity while the market remains sceptical.

Quicksand: Can It Escape Decline?

Stocks in the Quicksand quadrant suffer from both weak business performance and high investment risk. However, this does not mean they are destined for failure. The key is identifying signs of improvement.

• Are turnaround efforts showing tangible results? New leadership, strategic shifts, or restructuring initiatives may change the company’s trajectory.

• Is there potential for industry recovery? Cyclical businesses may experience downturns but recover strongly when market conditions improve.

• Is the business undervalued despite current struggles? A stock that is deeply discounted due to temporary issues may offer upside potential if fundamentals stabilize.

If these factors align, a Quicksand stock may climb toward the Turnaround quadrant and, with further progress, into the Goldmine quadrant.

The Key to Opportunity 

The Fundamental Mapper is a powerful visualization of where a stock stands today. But the real opportunity lies in predicting its future movement. By conducting thorough fundamental analysis, you can identify stocks that are poised to shift quadrants even if the market has yet to recognize their potential.

By focusing on evolving business performance rather than short-term market sentiment, you can uncover hidden opportunities. This is whether it is a Turnaround on the brink of success, a Gem with explosive upside, or even a Goldmine that is still underestimated. The market may price stocks based on current conditions, but you can profit by recognizing where they are headed next.

I will illustrate these with 4 case studies - one from each quadrant for the Fundamental Mapper - based on the Bursa Malaysia F&B companies.

Case Notes Fundamental analysis is a method of evaluating a company’s financial health and intrinsic value. It does this by examining its financial statements, business model, industry position, and economic factors. The goal is to determine whether a stock is undervalued or overvalued based on its actual performance. This approach relies on key financial metrics such as revenue, return on capital, and free cash flow. Analysts also assess qualitative factors, including management quality, competitive advantages, and industry trends. Fundamental analysis is widely used by long-term investors, particularly those who follow value investing principles. They use it to make informed decisions and build portfolios based on strong, well-managed businesses. By focusing on a company’s fundamentals, investors seek to minimize speculation and invest with confidence in assets that have sustainable growth potential. As you can see, there are many issues to consider when undertaking a fundamental analysis. This requires expertise and time.  Visualizing a company’s business performance and investment risk (by comparing market price with intrinsic value) is one way to shortcut the process. The Fundamental Mapper helps investors make informed decisions as it provides such insights in an easy-to-see format. Download the Fundamental Mapper app now on Xifu to get investment insights into Bursa Malaysia companies

Case Notes

Fundamental analysis is a method of evaluating a company’s financial health and intrinsic value. It does this by examining its financial statements, business model, industry position, and economic factors. The goal is to determine whether a stock is undervalued or overvalued based on its actual performance.

This approach relies on key financial metrics such as revenue, return on capital, and free cash flow. Analysts also assess qualitative factors, including management quality, competitive advantages, and industry trends.

Fundamental analysis is widely used by long-term investors, particularly those who follow value investing principles. They use it to make informed decisions and build portfolios based on strong, well-managed businesses. By focusing on a company’s fundamentals, investors seek to minimize speculation and invest with confidence in assets that have sustainable growth potential.

As you can see, there are many issues to consider when undertaking a fundamental analysis. This requires expertise and time. 

Visualizing a company’s business performance and investment risk (by comparing market price with intrinsic value) is one way to shortcut the process. The Fundamental Mapper helps investors make informed decisions as it provides such insights in an easy-to-see format.

Download the Fundamental Mapper app now on Xifu to get investment insights into Bursa Malaysia companies

 

Case Notes

Fundamental analysis is a method of evaluating a company’s financial health and intrinsic value. It does this by examining its financial statements, business model, industry position, and economic factors. The goal is to determine whether a stock is undervalued or overvalued based on its actual performance.

This approach relies on key financial metrics such as revenue, return on capital, and free cash flow. Analysts also assess qualitative factors, including management quality, competitive advantages, and industry trends.

Fundamental analysis is widely used by long-term investors, particularly those who follow value investing principles. They use it to make informed decisions and build portfolios based on strong, well-managed businesses. By focusing on a company’s fundamentals, investors seek to minimize speculation and invest with confidence in assets that have sustainable growth potential.

As you can see, there are many issues to consider when undertaking a fundamental analysis. This requires expertise and time. 

Visualizing a company’s business performance and investment risk (by comparing market price with intrinsic value) is one way to shortcut the process. The Fundamental Mapper helps investors make informed decisions as it provides such insights in an easy-to-see format.

Download the Fundamental Mapper app now on Xifu to get investment insights into Bursa Malaysia companies

 

Case Notes

Fundamental analysis is a method of evaluating a company’s financial health and intrinsic value. It does this by examining its financial statements, business model, industry position, and economic factors. The goal is to determine whether a stock is undervalued or overvalued based on its actual performance.

This approach relies on key financial metrics such as revenue, return on capital, and free cash flow. Analysts also assess qualitative factors, including management quality, competitive advantages, and industry trends.

Fundamental analysis is widely used by long-term investors, particularly those who follow value investing principles. They use it to make informed decisions and build portfolios based on strong, well-managed businesses. By focusing on a company’s fundamentals, investors seek to minimize speculation and invest with confidence in assets that have sustainable growth potential.

As you can see, there are many issues to consider when undertaking a fundamental analysis. This requires expertise and time. 

Visualizing a company’s business performance and investment risk (by comparing market price with intrinsic value) is one way to shortcut the process. The Fundamental Mapper helps investors make informed decisions as it provides such insights in an easy-to-see format.

Download the Fundamental Mapper app now on Xifu to get investment insights into Bursa Malaysia companies

 

Case Studies

There are about 50 odd companies under the Bursa F&B sector. I selected the following companies – one each under the 4 quadrants in the Fundamental Mapper as of March 2025.

CCK Consolidated Holdings Berhad - Goldmine

CCK is a Malaysian integrated poultry and seafood company with diversified operations across retail, food processing, and farming. The company operates a chain of CCK Fresh Mart retail outlets, supplying fresh and frozen food products to consumers. 

Vertical integration supports cost efficiencies, but fluctuations in feed prices and operational costs impact profitability. Despite near-term margin pressures, CCK continues to expand its retail presence and strengthen its Indonesian market foothold, positioning itself for long-term growth. 

Heineken Malaysia Berhad - Gem

Heineken is a leading brewer in Malaysia, operating as part of the global Heineken N.V. network. The company produces, markets, and distributes a portfolio of premium beer, cider, and stout brands, including Heineken, Tiger Beer, Guinness, and Strongbow. 

With a strong market presence, Heineken benefits from its extensive distribution channels and brand recognition. Post-pandemic, the company has experienced robust revenue growth driven by strong consumer demand and operational efficiency improvements. 

OCB Berhad - Turnaround

OCB is a diversified consumer products and property development company with business segments spanning consumer foods, bedding products, and real estate. The company's consumer foods division, which includes well-known food brands, remains the primary revenue driver. 

In recent years, OCB has undergone a strategic transformation, discontinuing lower-margin segments like building materials while introducing new initiatives such as property development. 

Hwa Tai Industries Berhad - Quicksand

Hwa Tai is a Malaysian food manufacturer specializing in biscuits, cookies, and related confectionery products. Established in 1962, the company has built a strong brand presence both locally and internationally, exporting its products to multiple global markets. 

Despite steady revenue growth in recent years, Hwa Tai has struggled with profitability due to rising operating costs, competitive market pressures, and supply chain challenges. The company has initiated various turnaround strategies to improve margins and operational efficiency.

Sources of information

I relied on the following sources of information in analysing the companies:

• Apart from the Fundamental Mapper, I will also refer to 3 other charts that are readily available on the Xifu app showing the following:

• P&L for the past 5 years.

• P&L for the past 5 quarters.

• Stock price trend for the past 3 years.

• Annual Reports from 2019 to 2024. For those companies which have yet to release the 2024 Annual Reports, I relied on the Q4 2024 announcements.

CCK’s profits are falling, but the growth story is not over yet

Bursa Malaysia CCK operates four key segments - retail, poultry, prawn, and food services. Retail is the dominant revenue driver, contributing nearly twice that of poultry. Vertical integration supports cost efficiency, but raw material price fluctuations remain a risk.

While revenue has grown, profitability declined due to higher costs and the end of government subsidies for poultry. The stock price saw strong gains but has since pulled back, reflecting investor caution on margin pressures. Despite this, CCK remains in the Goldmine quadrant in the Fundamental Mapper, signaling strong fundamentals and low investment risk. Refer to Chart 2.

Chart 2: CCK Performance

Despite near-term cost pressures, CCK has several strategic initiatives that could drive future growth:

• Retail & Indonesian Growth – Store expansions and rising demand for in-house processed products.

• Strategic Partnership of its Indonesia outfit to boost manufacturing and exports.

• Cost Management – Vertical integration helps, but feed price volatility remains a challenge.

While CCK is fundamentally strong, it must navigate cost pressures to sustain its Goldmine positioning. Retail and Indonesian expansion are key to long-term growth.

Heineken Malaysia – you have missed the boat.

Since the pandemic, Heineken Malaysia has improved its performance, with ROA rising to 27% (2023/24) from 16% (2020/21). However, this growth has been driven by topline expansion rather than margin improvements. Revenue is 45% higher, but gross profit margins declined from 29% to 27% comparing the 2 periods.

With a 3.8% CAGR from 2019 to 2024, Heineken’s growth mirrors Malaysia’s long-term GDP rate. If this continues while maintaining current margins and costs, profits should grow steadily. However, there are signs of improving efficiency, as operating profits and ROA have increased, indicating better cost management and asset utilization.

Chart 3: Heineken Malaysia Performance

From a fundamental perspective, Heineken remains a strong performer, reflected in its right most position on the Fundamental Mapper. Refer to Chart 3. However, from a value investing standpoint, the stock is trading at 17x PE and only 8% below its five-year high, suggesting limited margin of safety. 

Unless there are expectations for significant growth beyond GDP or better margin improvements, value investors may have missed the boat at this price.

OCB’s Big Business Shift: Could This Be the Next Breakout Stock?

While OCB reports its performance under four business segments - Consumer Foods, Bedding Products, Building Materials, and Property Development - the majority of its revenue and profits come from the Consumer Foods segment.

Over the past five years, the company has undergone significant business restructuring. In 2022, OCB introduced Property Development as a new segment, while in 2024, it discontinued its Building Materials business. This strategic shift has allowed the company to focus on higher-margin businesses, positioning it for long-term growth. However, the transition has also presented short-term financial challenges.

• Revenue has rebounded strongly after a dip in 2021, largely driven by the strong performance of the Consumer Foods segment (refer to the leftmost part of Chart 4).

• The Property Development segment is still in its early stages, but it has started contributing revenue and represents a potential long-term growth driver.

• The discontinuation of the Building Materials segment removed a lower-margin business and is expected to improve operational efficiency. In the short term, however, this exit resulted in a financial loss in 2024 due to restructuring costs.

After experiencing significant losses in 2019 and 2021, OCB returned to profitability in 2023. However, in 2024, net profit declined, primarily due to the disposal of a subsidiary and higher tax expenses. Despite this, the company remains in a much stronger financial position than in previous years, with improved cash reserves and profitability trends. Refer to Chart 4.

Chart 4: OCB Performance

Currently, OCB is classified in the Turnaround quadrant on the Fundamental Mapper (refer to the rightmost chart), indicating that its business fundamentals have improved but are not yet fully recognized by the market. 

Despite its financial recovery, OCB’s stock price has remained relatively stagnant over the past three years, suggesting that the market has yet to reflect the company’s better prospects. 

If the stock price remains unchanged while financial performance continues to improve, OCB will eventually move into the Goldmine quadrant, where both fundamentals and valuation will align favourably for investors.

Hwa Tai’s business overhaul: Will it finally be profitable?

Between 2019 and 2024, Hwa Tai revenue grew at 8% CAGR. This increase can largely be attributed to strategic market expansion, digital transformation, new product innovation, and sustainability initiatives. 

While Hwa Tai has seen steady revenue growth, its high operating costs, competitive pressures, financial obligations, and supply chain challenges have led to continued net losses. As such, you should not be surprised to see that it is classified as a high-risk, low business performance company in the Fundamental Mapper. Refer to Chart 5.

Chart 5: Hwa Tai Performance

For most of the time, it has been operating below its breakeven levels resulting in operating losses. To go beyond its breakeven levels, it can either grow revenue, improve its margins, reduce fixed costs, or have a combination of them.

The revenue growth is a positive sign that resulted in positive operating profits in 2024. The company is working on cost optimization and operational efficiencies, and we can see some improvements in gross profit margins since 2022. Fixed cost margin has also been steady. 

Its broadened market reach, improved sustainability efforts, upgraded operational efficiency, and adaptation to digital transformation trends provide hope that these improvements can be sustained. If so, then there is an opportunity for the company to improve its business performance. 

When you look at the stock price trends, you can see that the market has yet to take these into account. 

The key takeaway: While Hwa Tai has struggled with profitability, recent improvements suggest a potential turnaround. However, the market has yet to reflect this in its share price.

Conclusion

The Fundamental Mapper is more than just a static visual tool. It is a roadmap for identifying future investment opportunities. By focusing on evolving business performance rather than short-term market sentiment, investors can uncover hidden opportunities. This applies whether it is a Turnaround on the brink of success, a Gem with explosive upside, or even a Goldmine that is still underestimated.

Unlike the market, which reacts to past and present conditions, you can profit by recognizing where stocks are headed next. By looking at beyond the present, and anticipating quadrant shifts, you can gain an edge. Start using the Fundamental Mapper today and explore how stocks may evolve before the market fully prices them in.

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If the above article was useful, you can find more insights on how to make money in my e-book. The e-book is now available from Amazon, Kobo and Google Play.

PS: If you are in Malaysia or Singapore, the e-book can only be download from Kobo and Google Play. 

Disclaimer & Disclosure

I am not an investment adviser, security analyst, or stockbroker.  The contents are meant for educational purposes and should not be taken as any recommendation to purchase or dispose of shares in the featured companies.   Investments or strategies mentioned on this website may not be suitable for you and you should have your own independent decision regarding them. 

The opinions expressed here are based on information I consider reliable but I do not warrant its completeness or accuracy and should not be relied on as such. 

I may have equity interests in some of the companies featured.

This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.

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