MBMR / 5983 - 2009 Q4

MBM RESOURCES BERHAD

Listing Date: 16.02.1994
Market: MAIN
Sector: TRADING/SERVICES
Par Value: 1.00
Major Industry: Miscellaneous
Sub Industry: Wholesalers

MBM RESOURCES BERHAD is an investment holding company. The Company’s operating businesses are organized into three business segments: investment holding; marketing and distribution of motor vehicles and other related activities, and manufacturing of automotive parts, trucks and vehicles body building and other related activities. It operates through several subsidiaries. Its subsidiaries include Daihatsu (Malaysia) Sdn Bhd (DMSB), which is engaged in the marketing and distribution of motor vehicles, spare parts and provision of related motor repair services; Summit Vehicles Body Works Sdn. Bhd., which is engaged in trucks and vehicles body building and general engineering works, and Galaxy Waves Sdn. Bhd. whichis engaged in investment holding. On March 31, 2007, it acquired a 16.35% interest in Federal Auto Holdings Berhad (FAHB), which increased its interest in FAHB to 86%. In August 2008, it disposed Auto Style Enterprise Limited and Sun Motors Limited to Med-Bumikar Mara Sdn. Bhd.

OSK TP: 3.56
My TP: 2.98+0.06 = 3.04 (PE 8, EPS 0.3724, DPS 0.06)
My decison: NOT BUY
Reason: Market unstable

My study based on 2009 Q4 report (number in '000):
- ROE compare to last Q decreased 0.05% to 2.18% but higher than last year 0.5%
- Revenue compare to last Q growth 6.18% to 323832 and profit also growth 0.15% to 22525, mainly due to the Volkswagen dealership under Federal Auto Group commenced its first new operation in Petaling Jaya in December. The Japanese Yen moderated during the quarter, easing pressure on margins from trucks sales as well as contributions from associates; As compare to last year revenue growth 24.41% and profit growth 95.84%, mainly attributable to the recovery in all the business segments and favourable foreign exchange rates
- Equity compare to last Q increased 2.47% to 1032834, assets increased 2.6% to 1143357 and liabilities also increased 3.84% to 110523; As compare to last year equity increased 5.43%, assets increased 6.16% and liabilities also increased 13.46%
- Minority interest compare to last Q increased 1.38% to 136749 and compare to last year also increased 4.73%
- Got FCF 52951, NCF 25532
- Profit margin compare to last Q decreased 0.41% to 6.96% but higher than last year 0.86%
- DE compare to last Q increased 0.0014 to 0.107 and compare to last year also increased 0.0076
- 3 sen dividend declare
- My estimate next 4Q eps after 2009 Q4 result announced = 0.0931*4 = 0.3724, estimate PE on current price 2.7 = 7.09(DPS 0.06)
- From date 2009-11-06 to 2010-02-11 after 2009 Q3 result announced, highest price on 2010-01-20 was 2.7 and lowest price on 2009-11-30 was 2.4. Estimate next 4Q eps = 0.0916*4 = 0.3664, estimate highest/lowest PE = 7.21/6.39 (DPS 0.06)
- From date 2009-08-07 to 2009-11-05 after 2009 Q2 result announced, highest price on 2009-10-23 was 2.48 and lowest price on 2009-09-10 was 2.1. Estimate next 4Q eps = 0.0568*4 = 0.2272, estimate highest/lowest PE = 10.65/8.98 (DPS 0.06)
- From date 2009-05-15 to 2009-08-06 after 2009 Q1 result announced, highest price on 2009-08-06 was 2.37 and lowest price on 2009-06-02 was 2.1. Estimate next 4Q eps = 0.0381*4 = 0.1524, estimate highest/lowest PE = 14.37/12.6 (DPS 0.18)
- From date 2009-02-25 to 2009-05-14 after 2008 Q4 result announced, highest price on 2009-03-03 was 2.49 and lowest price on 2009-03-17 was 1.95. Estimate next 4Q eps = 0.0672*4 = 0.2688, estimate highest/lowest PE = 8.59/6.58 (DPS 0.18)
- Divident in sen 2009 = 0.06 (declare 3 sen on Q4 and declare 3 sen on Q2), 2008 = 0.18 (declare 6 sen on Q4 and declare 12 sen on Q2), 2007 = 0.12 (declare 6 sen on Q4 and declare 6 sen on Q2)