Company Info
My Analysis
Research House
Accounting Ratio
My notes based on 2011 quarter 2 report (number in '000):-
- The Group reported a pre-tax profit of RM689.3 million for Q2 FY2011, which is 15% higher than RM598.2 million reported for Q2 FY2010. The higher profit is due mainly to higher profit contribution from the plantation and property segment
- The plantation segment reported a 14% increase in operating profit to RM363.7 million for Q2 FY2011 as compared to RM319.9 million for Q2 FY2010. The higher profit is mainly due to higher CPO and PK prices realised. Average CPO price realised for Q2 FY2011 is RM2,800/MT compared to RM2,225/MT for Q2 FY2010, while average PK price realised for Q2 FY2011 is RM1,979/MT compared to RM1,089/MT for Q2 FY2010
- The higher operating profit for property development and investment is mainly due to gains recognised on disposal of investment properties amounting to approximately RM61 million during Q2 FY2011
- Despite the higher profits achieved in refining activities, the resource-based manufacturing segment recorded lower profits mainly due to fair value losses on the adoption of FRS 139. During Q2 FY2011, the total fair value losses on derivative contracts recognised is approximately RM73 million
- In the opinion of the Directors, the results for the financial period under review have not been affected by any transaction or event of a material or unusual nature which may have arisen between 31 December 2010 and the date of this announcement
- The Group reported a pre-tax profit of RM689.3 million for Q2 FY2011, which is 4% higher than the profit reported for Q1 FY2011 of RM661.7 million. Total segment results of the Group for Q2
FY2011 is RM664.6 million, 18% higher than the segment results reported for Q1 FY2011 of RM565.6 million
- The plantation segment reported a 5% increase in operating profit to RM363.7 million for Q2 FY2011 as compared to RM345.3 million for Q1 FY2011. Despite the lower FFB production, the plantation segment recorded higher profits mainly due to an increase in average CPO and PK prices realised
- Operating profit from the property segment for Q2 FY2011 is higher than the preceding quarter by 20%, mainly due to gains on disposal of investment properties of approximately RM61 million
- The resource-based manufacturing segment reported a profit of RM94.8 million in Q2 FY2011, 135% higher than Q1 FY2011 due mainly to higher profit achieved in refining activities
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1472*2 = 0.2944, estimate PE on current price 5.78 = 19.02(DPS 0.18)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.09*4 = 0.36, estimate highest/lowest PE = 16.64/14.64 (DPS 0.17)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0828*4*1.05 = 0.3478, estimate highest/lowest PE = 16.79/14.32 (DPS 0.17)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0692*1.1*4 = 0.3045, estimate highest/lowest PE = 17.34/15.04 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0729*4 = 0.2916, estimate highest/lowest PE = 19.31/17.46 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0737*4 = 0.2948, estimate highest/lowest PE = 18.86/16.72 (DPS 0.07)
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| Market Capital (Capital Size) | 37,067,725,485 (Very Large) |
| Par Value | RM 0.10 |
My Analysis
| Forecast P/E now | (5.78-0.18)/0.2944 = 19.02 (High) |
| Target Price | 4.71+0.18 = 4.89 (PE 16.0, EPS 0.2944, DPS 0.18) |
| Decision | Not interested unless all segments profit increase more |
| Comment | Revenue increased 12.8% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 29.7%, eps increased 20.4% and also higher than preceding year corresponding quarter 10.3%, free cash flow turn into positive but negative net cash flow increased, liquidity ratio increased from high to strong level, moderate gearing ratio, all accounting periods are good, CPO price decreasing, higher RM60 million from property investment which usually not happen, property development profit decreasing |
| First Support Price | 5.55 |
| Second Support Price | 5.35 |
| Risk Rating | MODERATE |
Research House
| HLG Target Price | 6.62 (2011-01-18) |
| ECM Target Price | 5.94 (2011-02-17) |
| Maybank Target Price | 6.35 (2011-02-17) |
| MIDF Target Price | 6.81 (2011-02-17) |
| OSK Target Price | 4.41 (2011-02-17) |
| TA Target Price | 6.72 (2011-02-17) |
| RHB Target Price | 6.15 (2011-03-11) |
Accounting Ratio
| Return on Equity | 17.74% |
| Dividend Yield | 3.11% |
| Profit Margin | 17.53% |
| Tax Rate | 19.48% |
| Asset Turnover | 0.7509 |
| Net Asset Value Per Share | 1.69 |
| Net Tangible Asset per share | 1.61 |
| Price/Net Tangible Asset Per Share | 3.55 |
| Cash Per Share | 0.56 |
| Liquidity Current Ratio | 4.0902 |
| Liquidity Quick Ratio | 2.7981 |
| Liquidity Cash Ratio | 1.8845 |
| Gearing Debt to Equity Ratio | 0.6188 |
| Gearing Debt to Asset Ratio | 0.3759 |
| Working capital per thousand Ringgit sale | 44.0% |
| Days to sell the inventory | 83 |
| Days to collect the receivables | 40 |
| Days to pay the payables | 43 |
My notes based on 2011 quarter 2 report (number in '000):-
- The Group reported a pre-tax profit of RM689.3 million for Q2 FY2011, which is 15% higher than RM598.2 million reported for Q2 FY2010. The higher profit is due mainly to higher profit contribution from the plantation and property segment
- The plantation segment reported a 14% increase in operating profit to RM363.7 million for Q2 FY2011 as compared to RM319.9 million for Q2 FY2010. The higher profit is mainly due to higher CPO and PK prices realised. Average CPO price realised for Q2 FY2011 is RM2,800/MT compared to RM2,225/MT for Q2 FY2010, while average PK price realised for Q2 FY2011 is RM1,979/MT compared to RM1,089/MT for Q2 FY2010
- The higher operating profit for property development and investment is mainly due to gains recognised on disposal of investment properties amounting to approximately RM61 million during Q2 FY2011
- Despite the higher profits achieved in refining activities, the resource-based manufacturing segment recorded lower profits mainly due to fair value losses on the adoption of FRS 139. During Q2 FY2011, the total fair value losses on derivative contracts recognised is approximately RM73 million
- In the opinion of the Directors, the results for the financial period under review have not been affected by any transaction or event of a material or unusual nature which may have arisen between 31 December 2010 and the date of this announcement
- The Group reported a pre-tax profit of RM689.3 million for Q2 FY2011, which is 4% higher than the profit reported for Q1 FY2011 of RM661.7 million. Total segment results of the Group for Q2
FY2011 is RM664.6 million, 18% higher than the segment results reported for Q1 FY2011 of RM565.6 million
- The plantation segment reported a 5% increase in operating profit to RM363.7 million for Q2 FY2011 as compared to RM345.3 million for Q1 FY2011. Despite the lower FFB production, the plantation segment recorded higher profits mainly due to an increase in average CPO and PK prices realised
- Operating profit from the property segment for Q2 FY2011 is higher than the preceding quarter by 20%, mainly due to gains on disposal of investment properties of approximately RM61 million
- The resource-based manufacturing segment reported a profit of RM94.8 million in Q2 FY2011, 135% higher than Q1 FY2011 due mainly to higher profit achieved in refining activities
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1472*2 = 0.2944, estimate PE on current price 5.78 = 19.02(DPS 0.18)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.09*4 = 0.36, estimate highest/lowest PE = 16.64/14.64 (DPS 0.17)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0828*4*1.05 = 0.3478, estimate highest/lowest PE = 16.79/14.32 (DPS 0.17)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0692*1.1*4 = 0.3045, estimate highest/lowest PE = 17.34/15.04 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0729*4 = 0.2916, estimate highest/lowest PE = 19.31/17.46 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0737*4 = 0.2948, estimate highest/lowest PE = 18.86/16.72 (DPS 0.07)
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