KLCI Stock - ANNJOO / 6556 - 2011 Quarter 3

ANN JOO RESOURCES BERHAD

Company Description

ANN JOO RESOURCES BERHAD is a Malaysia-based investment holding and property management company. It operates in two business segments: iron and steel, which is engaged in the manufacture and trading of hardware, steel and iron products, building and construction materials of all kinds and operations of steel mill and steel services centre, and investment holding, property management, plantations and others. Some of its wholly owned subsidiaries include AJE Best-On Sdn Bhd, which is engaged in trading in hardware, steel and iron products and building and construction materials of all kinds; Ann Joo Metal Sdn Bhd, which is engaged in trading, retailing, importing, exporting and supplying of all kinds of metal products, and Ann Joo (Sarawak) Sdn Bhd, which is engaged in trading in hardware and steel materials. In June 2007, the Company acquired the remaining interest in Ann Joo Steel Berhad. As of September 6, 2007, Ann Joo Corporation Sdn Bhd held a 66.54% interest in the Company.

Company Info

Listing Date	1996-11-26
Market Capital (Capital Size)	972,237,211 (Medium)
Par Value	RM 1.00
Board	Main
Sector	Industrial Products
Major Industry	Steel & Iron
Sub Industry	Property Management
Website	http://www.annjoo.com.my

My Analysis

Forecast P/E now	(1.86-0.07)/0.121 = 14.79 (High)
Target Price	1.69+0.07 = 1.76 (PE 14.0, EPS 0.121, DPS 0.07)
Decision	Not interested unless stock buying volume stronger than selling and got strong support at 1.8 above
Comment	Revenue increased 12.7% and also higher than preceding year corresponding quarter 87.2%, eps decreased 157.2 and was second consecutive quarter decreasing and also lower than preceding year corresponding quarter 248.4%, cash generated from operating more than enough to cover all expenses, weaker liquidity ratio at low level now, lower gearing ratio but still at high level now, lower inventory can indicate sales slow down
First Support Price	1.8
Second Support Price	1.6
Risk Rating	MODERATE

Research House

RHB Target Price	3.02 (2011-02-22)
OSK Target Price	2.89 (2011-02-25)
CIMB Target Price	3.74 (2011-05-27)
MIDF Target Price	2.8 (2011-05-27)
Affin Target Price	2.7 (2011-09-20)
HLG Target Price	1.34 (2011-11-25)
Maybank Target Price	1.3 (2011-11-25)

Accounting Ratio

Return on Equity	5.84%
Dividend Yield	5.56%
Profit Margin	-4.71%
Tax Rate	-
Asset Turnover	0.8024
Net Asset Value Per Share	1.4
Net Tangible Asset per share	1.38
Price/Net Tangible Asset Per Share	1.43
Cash Per Share	0.13
Liquidity Current Ratio	1.4253
Liquidity Quick Ratio	0.404
Liquidity Cash Ratio	0.0947
Gearing Debt to Equity Ratio	1.5305
Gearing Debt to Asset Ratio	0.604
Working capital per thousand Ringgit sale	21.0%
Days to sell the inventory	190
Days to collect the receivables	56
Days to pay the payables	31

Technical Analysis

SMA 20	1.83 (Uptrend 9 days)
SMA 50	1.844 (Downtrend)
SMA 100	1.973 (Downtrend)
SMA 200	2.345 (Downtrend)
MACD	-0.038709 (Uptrend 22 days)
MACD Histogram	0.026341 (Uptrend 15 days)

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue mainly due to higher sales tonnage arisen from the recovery in international market and domestic demand

- Loss mainly attributable to an allowance for diminution in value of inventories of RM37.88 million to reflect the prevailing price level in view of the sharp contraction in international steel prices coupled with an unexpectedly weakened RM against USD that has resulted in recognition of an unrealized foreign exchange loss of RM22.52 million

- Estimate next 4Q eps after 2011 Q3 result announced = (37880+22520-29476)*0.83/763444*4*0.9 = 0.121, estimate PE on current price 1.86 = 14.79(DPS 0.07)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0477*4*0.8 = 0.1526, estimate highest/lowest PE = 16.56/11.25 (DPS 0.1234)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.04+0.0602)*2 = 0.2004, estimate highest/lowest PE = 14.3/10.96 (DPS 0.1234)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04*4 = 0.16, estimate highest/lowest PE = 19.31/16.69 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0517*4 = 0.2068(0.0517 is average eps of Q110,Q409,Q308, due to steel price decreasing), estimate highest/lowest PE = 15.91/11.9 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0591*4 = 0.2364, estimate highest/lowest PE = 12.39/9.31 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.048*4 = 0.192, estimate highest/lowest PE = 15.68/13.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0682*4 = 0.2728, estimate highest/lowest PE = 12.17/8.69 (DPS 0.03)

ANNJOO latest news (English)

ANNJOO 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
2011-11-24	2011	3	N/A	N/A	-	1.95%	5.75%	625204	1737068	29476	70552	20830	61506	0.0273	0.0806	2698830	1630060	3719	1068770	220935	85979	92939	59264	134956	42017	101281	763444	763452	1511619	2011-09-30	4.71%	-	0.8024	-	1.4	1.38	1.43	0.13	1.4253	0.404	0.0947	1.5305	0.604	21.0%	190	56	31
2011-08-26	2011	2	2.65	1.84	0.04	3.27%	7.40%	554715	1111864	42773	100027	36410	82335	0.0477	0.1078	2857926	1744571	3600	1113355	78372	57698	60739	59147	20674	81413	140560	763450	763457	1908625	2011-06-30	7.71%	14.51%	0.6558	-	1.45	1.44	1.74	0.18	1.4558	0.4012	0.1191	1.572	0.6104	28.7%	256	65	34
2011-05-26	2011	1	2.99	2.32	-	4.16%	4.16%	557148	557148	57253	57253	45925	45925	0.0602	0.0602	2686434	1582084	3444	1104350	109793	42875	64554	59147	66918	2364	61511	763463	763463	2214042	2011-03-31	10.28%	19.15%	0.7129	-	1.44	1.43	2.03	0.08	1.0293	0.2012	0.0423	1.4371	0.5889	2.3%	257	45	32
2011-02-24	2010	4	3.11	2.62	0.0634	0.09%	12.53%	428564	1831876	6232	154637	983	134707	0.0013	0.1764	2710723	1636073	14731	1074650	346311	155540	532370	28663	501851	30519	59182	763470	763553	2183524	2010-12-31	1.45%	80.04%	0.6758	16.2112	1.39	1.38	2.07	0.08	1.0234	0.2314	0.0393	1.5436	0.6036	2.0%	266	60	32
2010-11-26	2010	3	3.15	2.73	-	1.39%	13.26%	333934	1403312	17224	148407	14064	133725	0.0184	0.1751	2461611	1453164	14471	1008447	216322	119765	346860	28664	336087	10773	39437	763474	763581	2183535	2010-09-30	5.16%	21.90%	0.6824	-	1.3	1.29	2.22	0.06	1.0501	0.1681	0.0316	1.462	0.5903	4.1%	291	40	33
2010-08-03	2010	2	3.35	2.52	0.06	7.30%	11.72%	595431	1069378	81172	131182	74552	119660	0.0976	0.1567	2262171	1240914	15083	1021257	22487	77475	156843	28672	99962	56881	85553	763487	763634	1946891	2010-06-30	13.63%	7.36%	0.7638	-	1.32	1.31	1.95	0.12	1.1044	0.2417	0.0763	1.2333	0.5486	7.0%	241	40	34
2010-04-28	2010	1	2.96	2.23	-	4.69%	4.69%	473947	473947	50009	50009	45107	45107	0.0591	0.0591	2041323	1080264	14438	961059	112288	29132	25742	28672	83156	108898	137570	763784	763784	2176784	2010-03-31	10.55%	9.14%	0.7627	-	1.24	1.23	2.32	0.19	1.1096	0.3436	0.1423	1.1412	0.5292	7.0%	197	46	34
2010-02-25	2009	4	3.04	2.63	-	2.73%	4.50%	276394	1303005	28470	46391	25332	41664	0.0332	0.0545	1978262	1051825	14340	926437	284250	119469	173702	40698	164781	8921	31777	764030	764039	2139284	2009-12-31	10.30%	9.04%	0.6587	51.3467	1.19	1.18	2.37	0.05	1.0389	0.1714	0.0341	1.1532	0.5317	3.1%	260	37	38
2009-11-16	2009	3	3.35	2.4	0.03	5.28%	1.80%	382185	1026611	51390	17921	47995	16331	0.0628	0.0214	1818072	909201	13777	908871	365157	90920	277160	37463	274237	2923	34540	764036	764043	2101099	2009-09-30	13.45%	6.31%	0.6886	-	1.17	1.16	2.37	0.05	1.0416	0.2634	0.0425	1.0158	0.5001	2.9%	162	36	26
2009-08-25	2009	2	2.78	2.18	-	0.55%	3.67%	424299	644426	5184	33468	4730	31664	0.0062	0.0414	1836978	974065	13625	862913	310733	80681	206277	37697	230052	23775	61472	764043	764046	1757298	2009-06-30	1.22%	17.65%	0.8104	-	1.11	1.1	2.09	0.09	1.3957	0.4489	0.0962	1.1469	0.5303	18.0%	133	40	21
2009-05-26	2009	1	2.46	1.7	-	4.15%	4.15%	220127	220127	38555	38555	36297	36297	0.0475	0.0475	2066099	1190862	28610	875237	78095	64830	19920	37697	13265	33185	70882	764050	764050	1505178	2009-03-31	17.51%	-	0.8571	-	1.11	1.1	1.79	0.1	1.2918	0.3375	0.0864	1.4066	0.5764	15.1%	176	31	21
2009-02-23	2008	4	2.1	1.02	-	20.90%	17.02%	225389	2222054	325343	135930	191311	155812	0.2504	0.2040	2075091	1159575	-	915516	97481	265369	310959	92589	362850	51891	40698	764050	763902	901579	2008-12-31	144.35%	-	1.0708	5.7852	1.2	1.19	0.99	0.05	1.3618	0.2865	0.0448	1.2666	0.5588	15.1%	172	24	17
2008-11-27	2008	3	1.32	1.12	-	4.89%	31.56%	618851	1996665	86150	461273	53762	347123	0.0701	0.4544	2195321	1095454	36857	1099867	28039	148271	127766	92753	176310	48544	44209	766881	763852	973938	2008-09-30	13.92%	35.39%	1.2088	-	1.39	1.38	0.92	0.06	1.7086	0.3704	0.0501	1.0305	0.499	23.8%	202	38	23
2008-08-07	2008	2	3.76	1.08	0.12	16.41%	26.07%	706504	1377813	237384	375123	184715	293362	0.2385	0.3848	1909512	784144	36900	1125368	78992	11973	117013	92753	67019	49994	42759	774617	762320	2850590	2008-06-30	33.60%	19.59%	1.3156	-	1.43	1.41	2.61	0.06	2.2636	0.6872	0.0715	0.7204	0.4107	30.7%	173	54	26
2008-05-07	2008	1	4.18	3.38	-	10.89%	10.89%	671309	671309	137739	137739	108647	108647	0.1449	0.1449	1771244	773230	50181	998014	142419	9996	53024	92753	132423	79399	172152	750022	750022	2835083	2008-03-31	20.52%	16.66%	1.2266	-	1.26	1.25	3.02	0.23	2.04	0.858	0.2768	0.8158	0.4365	29.8%	144	43	25
2008-02-18	2007	4	3.82	2.87	0.08	8.35%	19.66%	656935	1947857	71041	233960	72797	171420	0.1420	0.3379	1687395	815383	44433	872012	115203	208428	164165	21649	93225	70940	92589	512655	507310	1671255	2007-12-31	10.81%	-	1.1544	9.6478	1.63	1.61	2.02	0.18	1.8309	0.639	0.1432	0.9853	0.4832	27.7%	163	41	24
2007-11-07	2007	3	4.46	2.37	-	6.51%	15.53%	477319	1290922	62153	162918	50151	119655	0.1492	0.3553	1586935	816410	50566	770525	56751	189342	126819	21650	132591	5772	15878	336069	336745	1391325	2007-09-30	13.02%	11.61%	1.0235	-	2.14	2.11	1.96	0.06	1.7517	0.4607	0.0386	1.134	0.5145	25.5%	181	52	24
2007-08-15	2007	2	4.2	3.88	0.08	5.12%	9.06%	366984	813604	54237	100766	39266	69505	0.1166	0.2062	1574200	807451	59064	766749	27092	176413	143204	21650	149321	6117	15533	336880	337013	1172342	2007-06-30	14.78%	14.21%	0.7286	-	2.1	2.07	1.68	0.05	1.6436	0.3899	0.0314	1.141	0.5129	32.3%	259	65	43
2007-05-30	2007	1	N/A	N/A	-	3.39%	3.39%	446620	446620	46529	46529	30239	30239	0.0869	0.0897	1442240	549462	224163	892778	78048	6472	74416	21650	84520	10104	31754	347905	337043	747995	2007-03-31	10.42%	12.66%	0.5408	-	1.98	1.98	1.09	0.09	1.795	0.6197	0.0696	0.8218	0.381	46.5%	278	116	47
2007-02-14	2006	4	N/A	N/A	0.06	3.06%	12.10%	333297	1438394	27576	127150	25919	102554	0.0768	0.3420	1487487	639780	211997	847707	115828	78558	31034	15414	37270	6236	21650	337499	299847	499498	2006-12-31	8.27%	-	0.2241	4.3272	2.12	2.11	0.7	0.07	1.6026	0.522	0.043	1.0064	0.4301	95.8%	689	269	120

Financial Quarter Balance Sheet

year	qrt	Biological assets (A-0)	Deferred tax assets (A-0)	Intangible assets (A-0)	Investment in associated companies (A-0)	Investment properties (A-0)	Other investments (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Rolls & Moulds (A-0)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Current tax assets (A-1)	Derivative assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Deferred tax liabilities (L-0)	Employee benefits (L-0)	Loans & borrowings (L-0)	Bank overdraf (L-1)	Current tax liabilities (L-1)	Derivative liabilities (L-1)	Dividend payable (L-1)	Liabilities directly associated with assets classified as held for sale (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Minority interest (M-1)
2011	3	-	19909	8151	1303	6994	252	12200	1125323	-	101281	-	1075	-	1092472	329870	16802	6249	537240	-	9499	-	-	-	881947	178323	3719
2011	2	-	6828	8289	1270	6994	304	12280	1104131	-	140560	-	1063	-	1244413	331794	17094	6772	540750	-	8564	-	-	-	1006086	165305	3600
2011	1	-	5979	8428	1186	6994	325	12360	1093786	-	63952	-	1854	-	1252927	238643	17250	7520	44260	-	4122	-	-	-	1353410	155522	3444
2010	4	-	9403	8566	1166	6994	303	12439	1070052	-	61572	-	1726	-	1239676	298826	16693	7591	46600	-	3699	-	-	-	1414644	146846	14731
2010	3	-	17242	8704	1124	5964	296	57881	917822	7957	43478	-	1479	-	1213378	186286	18260	7875	51280	-	10554	17	-	-	1225969	139209	14471
2010	2	-	16257	8843	1007	5964	227	58118	880062	7596	88660	1516	1595	117	1003119	189090	14680	8703	54790	2	10935	-	-	-	1008181	143623	15083
2010	1	-	13729	8981	853	5964	240	58356	837178	7807	142141	3004	1465	532	765066	196007	14875	8381	58300	1466	3357	-	-	-	862248	131637	14438
2009	4	-	14012	9120	775	5964	247	12646	868501	-	35031	3004	4970	-	890981	133011	16540	8232	-	-	1162	-	-	-	896385	129506	14340
2009	3	-	16395	9258	694	7480	248	59636	793612	8136	37660	-	72481	-	689298	123174	14404	8999	-	15	1438	-	-	-	775351	108994	13777
2009	2	-	19120	9396	622	7356	248	59879	787995	8252	65065	-	76940	-	640431	161674	14535	8857	274227	593	448	-	-	-	571985	103420	13625
2009	1	-	19643	9535	520	7356	248	60122	775158	8560	79219	3925	77320	-	875355	149138	14554	8557	250445	5336	98	-	-	-	807884	104184	28610
2008	4	-	18038	9673	506	7356	248	60366	709849	8559	41426	11190	69269	-	995316	143295	14619	8190	211153	728	396	-	-	-	827025	97464	-
2008	3	-	-	9950	483	16607	248	60608	576979	7647	44639	-	6380	-	1192645	279135	47441	10239	146531	430	57478	-	-	-	698883	134452	36857
2008	2	-	-	9820	427	16612	248	52451	440773	7259	43669	-	5572	-	962376	370305	47236	10419	116003	910	56393	-	-	-	409567	143616	36900
2008	1	-	117	10162	391	16619	249	52644	414828	6869	172213	99555	3672	-	735505	258420	46303	10135	94562	61	16870	-	-	26867	451757	126675	50181
2007	4	-	117	9791	356	16624	249	52840	412834	6635	92940	98958	4702	-	773326	218023	40623	9915	116003	351	10722	-	-	29654	496148	111967	44433
2007	3	51960	-	9791	152	13870	245	84690	453341	6770	21279	-	3419	-	712039	229379	59274	-	205607	5401	12625	-	-	-	437335	96168	50566
2007	2	52643	-	9378	142	13870	288	84983	459373	6032	18073	-	3370	-	722693	203355	57294	-	173671	2540	9439	-	-	-	445281	119226	59064
2007	1	53326	-	2127	138	13870	321	85275	462414	6358	31754	-	3854	-	535871	246932	58664	-	34860	-	3937	-	-	-	360531	91470	224163
2006	4	54009	-	2127	134	13870	322	93417	468347	5732	22798	-	8434	-	572842	245455	66648	-	43040	1148	3434	-	9855	-	415743	99912	211997

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Share of profit/ (loss) of associates	Investment gain/loss	Gain/loss on disposal of non-current assets held for sale	After tax effect
2011	3	625204	8765	5635	1400	654182	119	-	32	-	3705
2011	2	554715	6207	6666	1931	510957	156	-	85	-	3665
2011	1	557148	10964	6285	8032	505287	364	-	20	-	3625
2010	4	428564	4988	3286	4542	427334	261	-	41	-	3705
2010	3	333934	3772	6023	15453	329962	612	-	117	-	3705
2010	2	595431	5975	4678	3820	517221	645	-	155	-	3665
2010	1	473947	4573	4377	2387	425650	329	-	78	-	3624
2009	4	276394	2575	4372	406	246571	563	-	81	-	2532
2009	3	382185	3242	4833	2208	330775	153	-	72	-	2533
2009	2	424299	915	6576	1586	416739	461	-	103	-	2511
2009	1	220127	1200	8215	2630	255680	1058	-	14	-	2569
2008	4	225389	129196	8713	1512	548532	4836	-	23	724	4254
2008	3	618851	30485	6165	4663	535509	1903	-	56	0	4254
2008	2	706504	46492	4585	6474	480779	6177	-	36	5527	4207
2008	1	671309	22954	5714	3850	543619	6138	-	35	8179	3699
2007	4	656935	6148	7074	5838	592248	4392	-	8	7582	-
2007	3	477319	7219	7068	2640	419002	4783	-	10	8254	-
2007	2	366984	7707	4357	2071	314550	7264	4	-	4085	-
2007	1	446620	5890	4272	3768	401244	10400	4	-	1653	-
2006	4	333297	5785	3837	1430	303283	7442	-	23	1866	1920

Financial Quarter Segments Revenue

year	qrt	Others	Elimination/Adjustment	Manufacturing	Trading
2011	3	7235	280067	723584	174452
2011	2	8065	122967	468670	200948
2011	1	8084	183553	555312	177305
2010	4	112290	168696	333854	151116
2010	3	7169	108445	253621	181589
2010	2	4732	66787	475600	191350
2010	1	224649	279758	408811	120245
2009	4	4949	44325	249654	66116
2009	3	62464	114778	353240	81259
2009	2	5185	45664	377483	87295
2009	1	10378	51558	181208	80099
2008	4	10188	19789	176193	58797
2008	3	16039	25100	553483	74430
2008	2	81926	102842	631916	95504
2008	1	3553	16710	604393	80073
2007	4	19512	9418	558788	60308
2007	3	133482	127290	414313	70094
2007	2	14133	26399	301132	86863
2007	1	9399	40330	389705	93645
2006	4	27317	43599	269182	86875

Financial Quarter Segments Profit

year	qrt	Others	Elimination/Adjustment	Manufacturing	Trading
2011	3	1554	-	30110	447
2011	2	2614	-	28143	14651
2011	1	2192	1780	42688	16505
2010	4	108431	112889	3225	6929
2010	3	1755	68	13463	3768
2010	2	102	69	68584	13291
2010	1	209507	209212	42767	7444
2009	4	525	3046	25239	7468
2009	3	57874	57808	45393	7762
2009	2	380	-	9065	579
2009	1	5532	4825	32151	1930
2008	4	1338	-	303027	20481
2008	3	6747	-	74185	19417
2008	2	5637	-	212265	24643
2008	1	3502	-	120952	13206
2007	4	18813	1550	64898	10090
2007	3	5383	-	52311	10834
2007	2	2796	-	42527	13171
2007	1	909	-	11633	37359
2006	4	103	-	23928	9414

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



6-Months Historical Chart from shareinvestor.com

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING

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1-Years Historical Chart from shareinvestor.com

5-Years Historical Chart from shareinvestor.com