KLCI Stock - MAMEE / 5282 - 2010 Quarter 3

MAMEE-DOUBLE DECKER (M) BERHAD

Company Description

MAMEE-DOUBLE DECKER (M) BERHAD is principally engaged is engaged in investment holding and provision of management services to subsidiaries. The principal activities of the Company consist of manufacturing and marketing of food and dairy products, soft drinks and property development activity. It operates in two business segments. The food and beverage segment is engaged in the manufacture and marketing of a range of food and dairy products, and soft drinks. The property development segment is engaged in the development of land into commercial buildings. During the year ended December 31, 2007, the Company acquired additional 40% interest in Mamee-Double Decker Foods (Suzhou) Co. Ltd and Myanmar Mamee-Double Decker Ltd. As of December 14, 2007, Pang Tee Chew had 51.19% interest in the Company.

Company Info

Listing Date	1992-03-18
Market Capital (Capital Size)	537,232,132 (Medium)
Par Value	RM 1.00
Board	Main
Sector	Consumer Products
Major Industry	Food & Beverages
Sub Industry	Property Development
Website	http://www.mamee.com/

My Analysis

Forecast P/E now	(3.55-0.12)/0.3511 = 9.77 (Moderate)
Target Price	3.51+0.12 = 3.63 (PE 10.0, EPS 0.3511, DPS 0.12)
Decision	NOT BUY unless price below 3.4
Comment	Revenue third consecutive quarter increasing and also higher than preceding year corresponding quarter, eps increased but lower than preceding year corresponding quarter, free cash flow increasing but still no positive net cash flow, liquidity ratio increased at moderate level now, low gearing ratio, all accounting period are as usual, increasing raw material prices
First Support Price	3.37
Second Support Price	3.26
Risk Rating	MODERATE

Research House

OSK Target Price

3.74 (2010-12-01)

Accounting Ratio

Return on Equity	18.43%
Dividend Yield	3.66%
Profit Margin	12.79%
Tax Rate	21.69%
Asset Turnover	1.4501
Net Asset Value Per Share	1.72
Net Tangible Asset per share	1.72
Price/Net Tangible Asset Per Share	1.94
Cash Per Share	0.44
Liquidity Current Ratio	2.9753
Liquidity Quick Ratio	2.477
Liquidity Cash Ratio	1.0283
Gearing Debt to Equity Ratio	0.2653
Gearing Debt to Asset Ratio	0.2096
Working capital per thousand Ringgit sale	27.0%
Days to sell the inventory	34
Days to collect the receivables	67
Days to pay the payables	62

My notes based on 2010 quarter 3 report (number in '000):-
- For the quarter under review, the Group recorded revenue of RM121.8 million, representing a 7% increase compared to RM113.8 million in the previous year's corresponding period, as a result of higher sales from the local and foreign markets due to effective advertising and promotion activities, as well as the strengthening of distribution channels. Profit before tax stood at RM15.6 million for the quarter, compared to RM16.1 million in the previous corresponding quarter last year, due to higher expenditure in selling and distribution incurred for the quarter under review, including Advertising & Promotion (A&P) expenses during the World cup season and Hari Raya festival

- For the 9-months period under review, group revenues increased 16% to RM357.4 million, compared to RM308.4 million in the previous year's corresponding period, due to the same factors above. Profit before tax stood at RM44.7 million as compared to RM43.2 million in the previous corresponding period last year, an increase of 3% due to higher expenses for selling and distribution, and administration incurred for the period under review

- The Group recorded slightly higher revenue in the third quarter this year as compared with the immediate preceding quarter, from RM120.2 million to RM121.8 million, on the back of sustained consumer demand. Profit before tax increased by 18% from RM13.2 million to RM15.6 million as a result of tightening in spending for sales and marketing expenses during the quarter under review

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0836*4*1.05 = 0.3511, estimate PE on current price 3.55 = 9.77(DPS 0.12)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1544*2 = 0.3088, estimate highest/lowest PE = 11.4/10.17 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 11.16/8.17 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.528(5% grow from 0.5029), after bonus = 0.2925, estimate highest/lowest = 10.53/7.79 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.5456, estimate highest/lowest PE = 7.59/4.58 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.521, estimate highest/lowest PE = 7.14/3.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.485, estimate highest/lowest PE = 5.15/4.39 (DPS 0.1)

MAMEE latest news (English)

MAMEE latest news (Chinese)

Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2010-11-30	2010	3	N/A	N/A	0.06	4.86%	13.84%	121802	357367	15580	44662	12202	34735	0.0836	0.2380	317572	66563	142	251009	22006	8262	17461	42591	13744	3717	38874	145967	145967	486070	2010-09-30	12.79%	21.69%	1.4501	-	1.72	1.72	1.94	0.44	2.9753	2.477	1.0283	0.2653	0.2096	27.0%	34	67	62
2010-08-23	2010	2	3.64	3.26	-	4.43%	9.44%	120198	235565	13229	29082	10570	22538	0.0724	0.1544	311406	72723	138	238683	14448	3881	17473	42635	10567	6906	35729	145967	145967	525481	2010-06-30	11.01%	20.14%	1.4533	-	1.63	1.63	2.21	0.44	2.6783	2.2353	0.9308	0.3049	0.2335	25.8%	34	68	68
2010-05-26	2010	1	3.78	2.8	-	5.01%	5.01%	115367	115367	15853	15853	11965	11965	0.0820	0.0820	307179	68441	164	238738	7775	2426	7297	42636	5349	1948	40688	145966	145966	416003	2010-03-31	13.74%	24.51%	1.4172	-	1.63	1.63	1.75	0.49	2.7944	2.319	1.0944	0.2869	0.2228	26.7%	35	62	68
2010-02-24	2009	4	3.2	2.4	0.07	4.59%	19.46%	103139	411498	12989	56233	10296	43629	0.1187	0.5029	294445	70256	161	224189	64845	54954	9029	44886	9891	862	45748	86753	86748	213412	2009-12-31	12.59%	21.05%	1.3975	4.8912	2.58	2.58	0.95	0.93	2.6645	2.2662	1.2171	0.3136	0.2386	26.9%	32	57	74
2009-11-26	2009	3	2.68	2.0	0.05	5.53%	15.19%	113865	308359	16084	43244	12125	33333	0.1491	0.4098	277196	57753	241	219443	40781	29940	9470	44902	10841	1371	46273	81342	81339	166751	2009-09-30	14.13%	24.58%	1.4564	-	2.69	2.69	0.76	0.57	2.6103	2.1631	0.8581	0.2635	0.2083	21.5%	29	62	56
2009-08-20	2009	2	3.82	2.01	-	5.14%	10.21%	102956	194494	13415	27160	10677	21208	0.1311	0.2605	269020	61314	236	207706	25477	4713	8979	44897	20764	11785	56682	81418	81417	203545	2009-06-30	13.03%	20.38%	1.489	-	2.55	2.54	0.98	0.7	2.7162	2.1838	0.9878	0.2955	0.2279	24.7%	35	62	58
2009-05-28	2009	1	2.6	2.23	-	5.24%	5.24%	91538	91538	13745	13745	10531	10531	0.1290	0.1290	255055	54147	232	200908	12132	1479	4086	44923	10653	6567	51490	81653	81653	183719	2009-03-31	15.02%	23.38%	1.554	-	2.46	2.45	0.92	0.63	2.8828	2.2617	1.0281	0.2698	0.2123	23.8%	33	57	49
2009-02-26	2008	4	2.6	1.86	0.05	4.82%	12.32%	95362	396967	11461	30089	9225	23597	0.1135	0.2903	255250	63699	231	191551	20614	14218	7112	45604	6396	716	44888	81272	81279	149540	2008-12-31	12.02%	19.48%	1.5552	6.3378	2.35	2.35	0.78	0.56	2.4295	1.9163	0.7586	0.3329	0.2496	21.5%	30	63	57
2008-11-26	2008	3	1.88	1.65	0.05	3.51%	7.73%	110716	301605	9052	18628	6522	14372	0.0802	0.1768	243114	57223	227	185891	1138	3263	7087	45597	4401	11488	34109	81272	81279	134098	2008-09-30	8.18%	27.92%	1.6036	-	2.28	2.28	0.72	0.42	2.662	2.0651	0.6341	0.3082	0.2354	22.9%	32	70	50
2008-08-29	2008	2	1.93	1.55	-	2.08%	4.36%	98733	190889	4312	9576	3750	7850	0.0461	0.0966	239276	59117	224	180159	2682	4002	7087	45551	6684	403	45148	81288	81295	148757	2008-06-30	4.37%	12.99%	1.5762	-	2.21	2.21	0.83	0.56	2.5725	1.9818	0.8062	0.3285	0.2471	23.3%	34	62	54
2008-05-28	2008	1	2.16	1.83	-	2.26%	2.26%	92156	92156	5264	5264	4100	4100	0.0504	0.0504	245898	64388	222	181510	3274	2503	7394	45537	5777	13171	58708	81362	81362	172487	2008-03-31	5.71%	22.07%	1.4922	-	2.23	2.23	0.95	0.72	2.4202	1.8685	0.9603	0.3552	0.2618	23.7%	35	54	50
2008-02-28	2007	4	2.28	1.94	0.05	2.69%	8.24%	88262	359742	6348	19918	4557	13989	0.0662	0.2018	235188	65504	221	169684	16091	5829	337	34961	10262	10599	45560	68878	69320	141199	2007-12-31	7.19%	28.17%	1.5296	10.1584	2.44	2.44	0.84	0.66	2.1415	1.6715	0.738	0.3865	0.2785	19.6%	31	57	53
2007-11-26	2007	3	2.57	2.0	0.15	2.84%	5.73%	97988	271480	6893	13571	4678	9433	0.0631	0.1259	236744	72198	218	164546	8806	5827	246	34965	2979	2733	37698	74168	74920	157977	2007-09-30	7.03%	32.08%	1.5123	-	2.19	2.19	0.97	0.51	1.9338	1.5147	0.5538	0.4394	0.305	17.8%	30	64	58
2007-08-22	2007	2	2.19	2.1	-	0.90%	2.96%	88526	173492	2074	6678	1437	4755	0.0201	0.0664	226457	65963	214	160494	546	239	518	34965	307	211	35176	71575	71600	173211	2007-06-30	2.34%	30.62%	1.1483	-	2.24	2.24	1.08	0.49	2.4201	1.8971	0.6806	0.4115	0.2913	28.2%	39	86	73
2007-05-28	2007	1	N/A	N/A	-	2.09%	2.09%	84966	84966	4604	4604	3318	3318	0.0447	0.0447	222052	63615	212	158437	445	1425	31	34965	1870	1839	33126	74182	74182	201775	2007-03-31	5.42%	27.89%	0.7724	-	2.13	2.13	1.28	0.45	2.3606	1.7889	0.6699	0.4021	0.2865	39.2%	63	116	107
2007-02-26	2006	4	N/A	N/A	0.1	2.90%	14.94%	86547	349129	4924	29712	4485	23132	0.0633	0.3360	227876	73093	210	154783	31701	12779	14323	30381	18922	4599	34980	70849	68854	204753	2006-12-31	5.69%	8.53%	0.3798	8.6023	2.24	2.24	1.29	0.49	2.0672	1.6237	0.5943	0.4729	0.3208	72.6%	114	251	249

Financial Quarter Balance Sheet

year	qrt	Available-for-sale investment (A-0)	Deferred tax assets (A-0)	Intangible assets (A-0)	Investment in associated companies (A-0)	Land held for property development (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Current tax assets (A-1)	Inventories (A-1)	Investment held for resale (A-1)	Prepaid lease payments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Provision for liabilities (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2010	3	28259	423	459	305	9193	-	91978	38874	4492	2553	31312	25739	-	83985	3728	-	5683	-	-	57152	142
2010	2	24977	423	459	202	9193	-	89637	35729	4737	1520	30849	29091	-	84589	3084	-	6961	-	-	62678	138
2010	1	26131	423	459	184	9193	-	89993	40688	4846	348	30761	30117	-	74036	3742	-	4316	-	-	60383	164
2009	4	16989	423	459	205	9193	-	89944	43457	5184	419	26491	37500	-	64181	3740	-	4037	804	-	61675	161
2009	3	41824	528	469	-	9193	11248	73173	46273	-	1279	24115	-	-	69094	3827	-	7383	-	-	46543	241
2009	2	19698	577	469	-	9193	11284	71042	57005	-	948	30728	-	-	68076	3603	-	6025	323	-	51363	236
2009	1	16837	261	469	-	9193	11401	72516	51490	-	191	31104	-	-	61593	4064	-	3633	-	-	46450	232
2008	4	16156	577	459	-	9193	11375	72446	45286	-	762	30640	-	-	68356	3999	-	1659	398	-	57643	231
2008	3	13751	365	459	-	9193	11375	64788	34109	-	1724	32105	-	-	75245	3435	-	2716	-	-	51072	227
2008	2	9164	372	173	-	8987	11356	65167	45148	-	1533	33082	-	-	64294	3119	-	2847	-	-	53151	224
2008	1	11553	417	173	-	8979	11356	65454	58708	-	1256	33731	-	-	54271	3250	-	3253	10000	-	47885	222
2007	4	14555	399	173	-	8960	11435	67457	45560	-	1595	29013	-	-	56041	3767	-	2107	10000	-	49630	221
2007	3	15128	718	173	-	3560	16595	68935	37698	-	2304	28527	-	-	63106	4128	-	3078	10000	317	54675	218
2007	2	10402	522	173	-	3552	16670	70048	35176	-	1698	27035	-	-	61181	4276	10000	1113	-	317	50257	214
2007	1	13716	609	173	-	3552	16676	70591	33126	-	510	28270	-	241	54588	4164	10000	947	-	317	48187	212
2006	4	13919	466	173	-	3518	16837	71278	34980	-	1056	26106	-	-	59543	4229	10000	1539	-	317	57008	210

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income	Share of profit/ (loss) of associates	Selling and distribution costs	Investment gain/loss	Other expenses
2010	3	121802	3379	78943	72	1118	6746	1	-	103	21053	-	629
2010	2	120198	2664	78261	85	920	5502	5	-	18	20656	-	3403
2010	1	115367	3885	72810	81	1383	6148	3	-	21	21471	-	366
2009	4	103139	2734	-	-	333	90137	41	188	-	-	132	-
2009	3	113865	3954	74397	80	592	6841	5	-	158	18104	-	891
2009	2	102956	2734	67571	78	1110	5218	4	-	-	17819	-	35
2009	1	91538	3213	58912	86	941	3195	1	-	-	17627	-	1086
2008	4	95362	2233	-	0	2857	87132	3	410	-	-	36	-
2008	3	110716	2527	-	0	290	101965	3	433	-	-	422	-
2008	2	98733	560	-	122	466	95796	2	470	-	-	561	-
2008	1	92156	1162	-	131	857	87488	2	222	-	-	352	-
2007	4	88262	1788	-	132	1865	84399	3	275	-	-	477	-
2007	3	97988	2211	-	133	201	91850	4	460	-	-	227	-
2007	2	88526	635	-	131	568	87108	2	132	-	-	87	-
2007	1	84966	1284	-	129	234	80859	2	168	-	-	224	-
2006	4	86547	420	-	132	1198	83498	19	293	-	-	516	-

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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