Company Info
My Analysis
Research House
Accounting Ratio
My notes based on 2011 quarter 1 report (number in '000):-
- The Group registered a pre-tax profit of RM940.6 million which is 4% lower than that of the previous year’s profit of RM982.2 million. The decline was mainly due to the lower contribution from Plantation, Energy & Utilities and Healthcare & Others although Industrial and, in particular Motors registered improved results
- Contribution from Plantation dropped by 22% mainly due to the lower production of fresh fruit bunches (FFB) and lower oil extraction rate (OER) coupled with lower contribution from downstream operations, despite the higher average crude palm oil price realised of RM2,511 per tonne as compared to RM2,245 per tonne in the corresponding period
- FFB production for the Group fell by 6% to 2.57 million tonnes attributable to lower FFB production in Malaysia by 2% to 1.72 million tonnes and in Indonesia by 12% to 0.85 million tonnes. This significant drop in Indonesian production was due to prolonged and unusually high rainfall, changing cropping pattern, poor pollination and tip-ripening. The Group’s OER dropped to 21.2% as compared to 22.1% in the corresponding period
- Downstream operations recorded lower profits largely due to the lower sales and higher feedstock costs
- Property registered a marginal decrease of 1% in profit mainly due to the lower contribution from an associate involved in asset management
- Industrial recorded an increase in profit of 23% largely on account of the higher demand for heavy equipment in Australia, Malaysia and China
- The Motors division recorded a sterling performance with a marked 137% jump in profit driven by the better performance from all regions except Singapore
- Energy & Utilities registered a decrease in profit of 50% primarily due to the lower fabrication and engineering activities. The Division’s Power and Port sectors on the other hand, managed to register improvements mainly due to the higher contribution from its Thailand power plant and the port operations in China
- The results from Healthcare & Others fell by 49% largely due to the lower contribution from the Insurance sector and share of loss of an associate during the current quarter
- For the quarter ended 30 September 2010, the Group recorded a significant increase in profit before tax of RM940.6 million as compared to RM25.0 million in the preceding quarter mainly due to the losses in the Energy & Utilities division of RM732.4 million in the preceding quarter
- Contribution from Plantation was higher by 21% mainly due to the higher average crude palm oil price realised of RM2,511 per tonne as compared to RM2,440 per tonne in the preceding quarter and the 15% increase in fresh fruit bunches production
- Property’s result declined by 50% primarily due to the lower sales in the Group’s residential and commercial townships as compared to that of the preceding quarter
- Contribution from Industrial rose by 5% due particularly to the higher sales in equipment and product services in Australia and Malaysia as compared to the preceding quarter
- Motors posted a lower profit of 2% for the current quarter mainly due to the lower results from Singapore which was partially offset by the better performance in all the other regions
- Energy & Utilities recorded a profit for the current quarter as compared to a loss in the preceding quarter of RM732.4 million due to the provision for losses and impairment of RM711.9 million in the preceding quarter
- Healthcare & Others reported a profit for the current quarter compared to a loss in the preceding quarter. The loss in the preceding quarter was mainly due to the impairment of an investment of RM61.2 million
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1271*4*1.1 = 0.5592(ROE 3.5% per quarter with condition CPO price continue maintain high), estimate PE on current price 9.35 = 16.54(DPS 0.1)
- No estimate next 4Q eps after 2010 Q4 result announced
- No estimate next 4Q eps after 2010 Q3 result announced
- Estimate next 4Q eps after 2010 Q2 result announced = 0.37, estimate highest/lowest PE = 22.22/19.59 (DPS 0.22)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.34, estimate highest/lowest PE = 26.44/23.76(DPS 0.2)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.37, estimate highest/lowest PE = 24.43/21.59 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.34, estimate highest/lowest PE = 24.35/18.91 (DPS 0.27)
SIME latest news (English)
SIME latest news (Chinese)
Daily Palm Oil Prices
Crude Palm Oil Future
| Market Capital (Capital Size) | 56,188,486,819 (Very Large) |
| Par Value | RM 0.50 |
My Analysis
| Forecast P/E now | (9.35-0.1)/0.5592 = 16.54 (High) |
| Target Price | 8.95+0.1 = 9.05 (PE 16.0, EPS 0.5592, DPS 0.1) |
| Decision | NOT BUY unless price below 8.7 |
| Comment | Revenue decreased but still higher than preceding year corresponding quarter, eps largely increased but still lower than preceding year corresponding quarter, got free and positive net cash flow, low liquidity ratio, above moderate gearing ratio, all accounting period are as usual, CPO price increased |
| First Support Price | 8.6 |
| Second Support Price | 8.15 |
| Risk Rating | MODERATE |
Research House
| ECM Target Price | 11.8 (2010-10-28) |
| MIDF Target Price | 10.87 (2010-11-11) |
| TA Target Price | 10.27 (2010-11-18) |
| Maybank Target Price | 10.5 (2010-11-29) |
| OSK Target Price | 8.84 (2010-11-29) |
| HwangDBS Target Price | 10.2 (2010-11-30) |
| AMMB Target Price | 10.6 (2011-01-07) |
| RHB Target Price | 11.1 (2011-01-13) |
Accounting Ratio
| Return on Equity | 3.12% |
| Dividend Yield | 1.07% |
| Profit Margin | 10.71% |
| Tax Rate | 26.87% |
| Asset Turnover | 0.8912 |
| Net Asset Value Per Share | 3.52 |
| Net Tangible Asset per share | 3.5 |
| Price/Net Tangible Asset Per Share | 2.5 |
| Cash Per Share | 0.84 |
| Liquidity Current Ratio | 1.6532 |
| Liquidity Quick Ratio | 1.006 |
| Liquidity Cash Ratio | 0.4423 |
| Gearing Debt to Equity Ratio | 0.7725 |
| Gearing Debt to Asset Ratio | 0.428 |
| Working capital per thousand Ringgit sale | 22.0% |
| Days to sell the inventory | 83 |
| Days to collect the receivables | 62 |
| Days to pay the payables | 77 |
My notes based on 2011 quarter 1 report (number in '000):-
- The Group registered a pre-tax profit of RM940.6 million which is 4% lower than that of the previous year’s profit of RM982.2 million. The decline was mainly due to the lower contribution from Plantation, Energy & Utilities and Healthcare & Others although Industrial and, in particular Motors registered improved results
- Contribution from Plantation dropped by 22% mainly due to the lower production of fresh fruit bunches (FFB) and lower oil extraction rate (OER) coupled with lower contribution from downstream operations, despite the higher average crude palm oil price realised of RM2,511 per tonne as compared to RM2,245 per tonne in the corresponding period
- FFB production for the Group fell by 6% to 2.57 million tonnes attributable to lower FFB production in Malaysia by 2% to 1.72 million tonnes and in Indonesia by 12% to 0.85 million tonnes. This significant drop in Indonesian production was due to prolonged and unusually high rainfall, changing cropping pattern, poor pollination and tip-ripening. The Group’s OER dropped to 21.2% as compared to 22.1% in the corresponding period
- Downstream operations recorded lower profits largely due to the lower sales and higher feedstock costs
- Property registered a marginal decrease of 1% in profit mainly due to the lower contribution from an associate involved in asset management
- Industrial recorded an increase in profit of 23% largely on account of the higher demand for heavy equipment in Australia, Malaysia and China
- The Motors division recorded a sterling performance with a marked 137% jump in profit driven by the better performance from all regions except Singapore
- Energy & Utilities registered a decrease in profit of 50% primarily due to the lower fabrication and engineering activities. The Division’s Power and Port sectors on the other hand, managed to register improvements mainly due to the higher contribution from its Thailand power plant and the port operations in China
- The results from Healthcare & Others fell by 49% largely due to the lower contribution from the Insurance sector and share of loss of an associate during the current quarter
- For the quarter ended 30 September 2010, the Group recorded a significant increase in profit before tax of RM940.6 million as compared to RM25.0 million in the preceding quarter mainly due to the losses in the Energy & Utilities division of RM732.4 million in the preceding quarter
- Contribution from Plantation was higher by 21% mainly due to the higher average crude palm oil price realised of RM2,511 per tonne as compared to RM2,440 per tonne in the preceding quarter and the 15% increase in fresh fruit bunches production
- Property’s result declined by 50% primarily due to the lower sales in the Group’s residential and commercial townships as compared to that of the preceding quarter
- Contribution from Industrial rose by 5% due particularly to the higher sales in equipment and product services in Australia and Malaysia as compared to the preceding quarter
- Motors posted a lower profit of 2% for the current quarter mainly due to the lower results from Singapore which was partially offset by the better performance in all the other regions
- Energy & Utilities recorded a profit for the current quarter as compared to a loss in the preceding quarter of RM732.4 million due to the provision for losses and impairment of RM711.9 million in the preceding quarter
- Healthcare & Others reported a profit for the current quarter compared to a loss in the preceding quarter. The loss in the preceding quarter was mainly due to the impairment of an investment of RM61.2 million
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1271*4*1.1 = 0.5592(ROE 3.5% per quarter with condition CPO price continue maintain high), estimate PE on current price 9.35 = 16.54(DPS 0.1)
- No estimate next 4Q eps after 2010 Q4 result announced
- No estimate next 4Q eps after 2010 Q3 result announced
- Estimate next 4Q eps after 2010 Q2 result announced = 0.37, estimate highest/lowest PE = 22.22/19.59 (DPS 0.22)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.34, estimate highest/lowest PE = 26.44/23.76(DPS 0.2)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.37, estimate highest/lowest PE = 24.43/21.59 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.34, estimate highest/lowest PE = 24.35/18.91 (DPS 0.27)
SIME latest news (English)
SIME latest news (Chinese)
Daily Palm Oil Prices
Crude Palm Oil Future
No comments:
Post a Comment