KLCI Stock - TGUAN / 7034 - 2011 Quarter 3

THONG GUAN INDUSTRIES BERHAD

Company Description

THONG GUAN INDUSTRIES BERHAD is a Malaysia-based company. The Company is principally engaged in investment holding activities, and also in trading of plastic and paper products. It operates in three business segments: plastic products, which is engaged in the manufacturing and trading of plastic based products; food and beverages, which is engaged in the manufacturing and trading of consumer food products, such as tea, coffee, biscuits, snack food and curry powder, and operations of food and beverage outlet, and others, which is engaged in the manufacturing and trading of products, such as high-density monofilament ropes, polypropylene string, paper serviette, colonge paper towel, rubber band, drinking straw and machinery. The business segments are operated principally in Malaysia and China.

Company Info

Listing Date	1997-12-19
Market Capital (Capital Size)	129,401,535 (Small)
Par Value	RM 1.00
Board	Main
Sector	Industrial Products
Major Industry	Plastic Products
Sub Industry	Food & Beverage
Website	http://www.thongguan.com/

My Analysis

Forecast P/E now	(1.23-0.05)/0.2664 = 4.43 (Moderate)
Target Price	1.60+0.05 = 1.65 (PE 6.0, EPS 0.2664, DPS 0.05)
Decision	BUY if stock price near to SMA20 and buying volume stronger than selling
Comment	Revenue increased 11% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 15%, eps decreased 28.5% but higher than preceding year corresponding quarter 60.8%, cash generated from operating enough for financing expenses but still spent 22.4% of Group cash for investing expenses, weaker liquidity ratio but still at moderate level now, higher gearing ratio at below moderate level now, all accounting ratio are good, higher inventory can indicate Group products demand is good, plastics products division (main profit contributor) growth
First Support Price	1.18
Second Support Price	1.1
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	11.61%
Dividend Yield	4.07%
Profit Margin	4.42%
Tax Rate	13.59%
Asset Turnover	1.5654
Net Asset Value Per Share	2.23
Net Tangible Asset per share	2.23
Price/Net Tangible Asset Per Share	0.52
Cash Per Share	0.4
Liquidity Current Ratio	2.3273
Liquidity Quick Ratio	1.3341
Liquidity Cash Ratio	0.4416
Gearing Debt to Equity Ratio	0.4579
Gearing Debt to Asset Ratio	0.314
Working capital per thousand Ringgit sale	23.9%
Days to sell the inventory	69
Days to collect the receivables	57
Days to pay the payables	51

Technical Analysis

SMA 20	1.194 (Uptrend 19 days)
SMA 50	1.164 (Uptrend)
SMA 100	1.12 (Uptrend)
SMA 200	1.096 (Uptrend)
MACD	0.024827 (Uptrend 1 day)
MACD Histogram	0.004747 (Uptrend 13 days)

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue mainly due to the increase in export volume of the group's products (higher demand for the group's plastic packaging products)

- Higher pbt than FY10Q3 mainly due to the increase in revenue and better margin

- Lower pbt than FY11Q2 mainly due to the unrealised loss on derivatives contracts with a negative impact of RM1.43 million from the Group's hedging activities as the USD and JPY strengthen unexpectedly against the RM

- Estimate next 4Q eps after 2011 Q3 result announced = 0.2664, estimate PE on current price 1.23 = 4.43(DPS 0.05)
- Estimate next 4Q eps after 2011 Q2 result announced = (0.0603+0.0729)*2 = 0.2664, estimate highest/lowest PE = 4.73/3.3 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.2129*1.05 = 0.2235, estimate highest/lowest PE = 5.86/3.85 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1935*1.1 = 0.2129, estimate highest/lowest PE = 4.93/4.23 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.045*4 = 0.18(profit margin around 4%), estimate highest/lowest PE = 5.67/4.89 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.04*4 = 0.16, estimate highest/lowest PE = 6.38/5.19(DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1351*1.1 = 0.1486 (10% increase), estimate highest/lowest PE = 7.81/4.98 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1351 (revenue growth but cost also increasing), estimate highest/lowest PE = 5.92/5.26 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.134, estimate highest/lowest PE = 6.42/5.45 (DPS 0.02)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1138, estimate highest/lowest PE = 7.73/6.63 (DPS 0.02)

TGUAN latest news (English)

TGUAN 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	-	2.34%	8.32%	142325	395154	6297	21788	5479	19500	0.0521	0.1854	341534	107254	72	234280	9232	15278	5500	51494	6046	11546	39948	105205	105205	122037	2011-09-30	4.42%	13.59%	1.5654	-	2.23	2.23	0.52	0.4	2.3273	1.3341	0.4416	0.4579	0.314	23.9%	69	57	51
2011-08-25	2011	2	1.31	0.93	-	3.32%	6.07%	128202	252829	8304	15491	7674	14021	0.0729	0.1333	324819	93648	-	231171	3804	6275	5313	50833	10079	4766	46067	105205	105205	104152	2011-06-30	6.48%	7.59%	1.5889	-	2.2	2.2	0.45	0.47	2.6062	1.516	0.6046	0.4051	0.2883	25.6%	66	51	38
2011-05-27	2011	1	1.36	0.91	-	2.85%	2.85%	124627	124627	7187	7187	6347	6347	0.0603	0.0603	309743	87145	-	222598	5647	3046	2671	50629	8693	11364	39265	105205	105205	110465	2011-03-31	5.77%	11.69%	1.6109	-	2.12	2.12	0.5	0.4	2.6391	1.6316	0.5561	0.3915	0.2813	24.8%	58	57	41
2011-02-25	2010	4	1.1	0.95	0.05	3.29%	9.40%	139486	488434	8439	22727	7133	20361	0.0678	0.1935	323176	106465	-	216711	37968	21757	1122	33816	16211	17333	51149	105205	105205	96788	2010-12-31	6.05%	15.48%	1.5114	4.7536	2.06	2.06	0.45	0.53	2.2421	1.3996	0.5894	0.4913	0.3294	24.0%	62	55	53
2010-11-30	2010	3	1.06	0.92	-	1.62%	6.30%	123787	348948	3550	14288	3407	13228	0.0324	0.1257	290468	80632	-	209836	21732	12166	288	33827	9566	9278	43105	105205	105205	102048	2010-09-30	2.87%	4.03%	1.5782	-	1.99	1.99	0.49	0.43	2.7431	1.7456	0.6705	0.3843	0.2776	25.7%	56	55	40
2010-08-26	2010	2	1.06	0.87	-	1.99%	4.63%	111067	225161	4408	10738	4220	9821	0.0401	0.0934	308432	96308	-	212124	1347	11188	13186	34237	9841	3345	37582	105205	105205	95736	2010-06-30	3.97%	4.26%	1.4204	-	2.02	2.02	0.45	0.39	2.4011	1.3732	0.4998	0.454	0.3123	26.5%	75	57	46
2010-05-27	2010	1	1.2	0.78	-	2.69%	2.69%	114094	114094	6330	6330	5601	5601	0.0532	0.0532	291492	83418	-	208074	2431	2704	3328	34297	5135	8463	25834	105205	105205	82059	2010-03-31	5.55%	11.52%	1.4723	-	1.98	1.98	0.39	0.28	2.5011	1.4992	0.3893	0.4009	0.2862	26.2%	69	67	52
2010-02-25	2009	4	0.84	0.75	0.04	1.52%	6.95%	109458	403060	3846	17509	3101	14209	0.0295	0.1351	288998	84591	-	204407	67620	5694	34666	7610	61926	27260	34870	105205	105205	84690	2009-12-31	3.51%	19.37%	1.3947	5.9603	1.94	1.94	0.41	0.37	2.4049	1.458	0.5142	0.4138	0.2927	26.4%	70	61	52
2009-11-20	2009	3	0.88	0.75	-	2.56%	5.55%	103464	293602	5581	13663	5117	11108	0.0486	0.1056	263089	62841	-	200248	59740	4466	40988	7631	55274	14286	21917	105205	105205	82059	2009-09-30	5.39%	8.31%	1.5395	-	1.9	1.9	0.41	0.25	2.7986	1.5468	0.4842	0.3138	0.2389	24.4%	64	50	34
2009-08-27	2009	2	0.9	0.775	-	2.28%	3.01%	102139	190138	5705	8082	4531	5991	0.0431	0.0569	271784	72890	-	198894	60786	3615	38497	7674	57171	18674	26348	105205	105205	82059	2009-06-30	5.59%	20.58%	1.7454	-	1.89	1.89	0.41	0.28	2.4255	1.4235	0.4444	0.3665	0.2682	19.7%	52	47	37
2009-05-28	2009	1	0.85	0.68	-	0.74%	0.74%	87999	87999	2377	2377	1460	1460	0.0139	0.0139	268151	71923	-	196228	36794	1431	28358	7631	35363	7005	14636	105205	105205	75747	2009-03-31	2.70%	38.58%	1.923	-	1.87	1.87	0.39	0.15	2.3574	1.2255	0.2496	0.3665	0.2682	17.0%	54	43	28
2009-02-27	2008	4	0.8	0.55	0.02	3.69%	2.42%	111419	564558	10126	3815	7067	4646	0.0672	0.0442	297774	106069	-	191705	2703	2160	5150	17644	4863	10013	7631	105205	105205	71539	2008-12-31	9.09%	-	1.896	15.3981	1.82	1.82	0.37	0.13	1.8435	0.9242	0.1338	0.5533	0.3562	14.8%	61	49	27
2008-11-28	2008	3	0.8	0.65	-	1.37%	5.84%	172802	453165	3489	13916	2721	11567	0.0259	0.1099	364160	166033	-	198127	10634	504	5188	17644	11138	5950	11694	105205	105205	84164	2008-09-30	2.02%	22.01%	1.6252	-	1.88	1.88	0.43	0.17	1.5819	0.7518	0.1136	0.838	0.4559	15.2%	84	60	58
2008-08-28	2008	2	1.0	0.795	-	3.01%	4.59%	143431	280363	7135	10427	5809	8846	0.0552	0.0841	332758	140078	-	192680	1071	203	6047	17644	868	5179	12465	105205	105205	89424	2008-06-30	4.97%	18.58%	1.6725	-	1.83	1.83	0.46	0.15	1.6757	0.7823	0.1246	0.727	0.421	15.5%	80	55	55
2008-05-29	2008	1	1.0	0.8	-	1.63%	1.63%	136932	136932	3292	3292	3037	3037	0.0289	0.0289	320276	133406	-	186870	5250	936	8838	17644	4314	13152	4492	105205	105205	91002	2008-03-31	2.40%	7.75%	1.6851	-	1.78	1.78	0.49	0.1	1.6554	0.8199	0.0881	0.7139	0.4165	14.6%	72	59	52
2008-02-29	2007	4	1.1	0.81	0.03	0.47%	6.53%	138651	518215	1395	14993	871	12008	0.0083	0.1141	336393	152529	-	183864	34014	9132	17775	10537	24882	7107	17644	105205	105205	86268	2007-12-31	1.01%	38.71%	1.5405	7.1842	1.75	1.75	0.47	0.24	1.529	0.7548	0.1862	0.8296	0.4534	14.1%	80	55	61
2007-11-23	2007	3	1.07	0.81	-	2.90%	6.09%	137515	379564	5390	12762	5308	11137	0.0505	0.1059	338722	155977	16	182745	23624	7707	11939	10537	15917	3978	14515	105205	105205	105205	2007-09-30	3.92%	1.52%	1.4854	-	1.74	1.74	0.57	0.18	1.5186	0.7073	0.1379	0.8536	0.4605	14.4%	89	58	66
2007-08-30	2007	2	1.13	0.985	-	1.38%	3.22%	126584	242049	3734	7372	2487	5819	0.0236	0.0553	337142	156548	26	180594	18268	5005	9199	10537	13263	4064	14601	105205	105205	N/A	2007-06-30	2.95%	33.40%	1.0844	-	1.72	1.72	N/A	0.19	1.5084	0.7496	0.1447	0.867	0.4643	19.4%	114	84	87
2007-05-31	2007	1	N/A	N/A	-	1.87%	1.87%	115465	115465	3638	3638	3332	3332	0.0317	0.0317	310277	132171	26	178106	20280	3325	13327	10537	16955	3628	14165	105205	105205	150443	2007-03-31	3.15%	8.41%	0.7704	-	1.69	1.69	0.85	0.17	1.591	0.8078	0.1602	0.7422	0.426	28.1%	147	112	105
2007-02-28	2006	4	N/A	N/A	0.03	1.54%	12.34%	123563	469514	6378	26905	2691	21572	0.0256	0.2050	312038	137264	26	174774	17436	24049	4707	12045	6613	1906	10139	105205	105205	150443	2006-12-31	5.16%	57.79%	0.396	6.974	1.66	1.66	0.86	0.14	1.5545	0.8129	0.1276	0.7855	0.4399	52.9%	283	238	178

Financial Quarter Balance Sheet

year	qrt	Other investments (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Deposits with licensed banks (A-1)	Inventories (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2011	3	1891	11596	103896	24374	2173	18156	95660	83788	7625	3317	1930	24230	70152	72
2011	2	2052	9188	99317	29568	2630	20136	89625	72303	7962	3474	1103	30325	50784	-
2011	1	2026	9164	99362	29099	2858	12870	76048	78316	7880	3789	495	20875	54106	-
2010	4	1966	9279	100323	49031	3013	6600	79511	73453	8051	4034	487	25363	68530	-
2010	3	1890	7473	95939	41514	3584	3750	67333	68985	7899	5230	-	19819	47684	-
2010	2	1985	7609	99531	34050	4305	7438	85322	68192	8160	5143	-	30789	52216	-
2010	1	2017	6665	95758	26715	4384	2400	74931	78622	8426	203	-	18475	56314	-
2009	4	2017	6826	97704	36059	3943	2950	71835	67664	8517	207	172	22332	53363	-
2009	3	2067	6723	100728	26570	2728	-	68690	55583	7732	235	2509	16212	36153	-
2009	2	1997	6993	103934	29108	2630	-	65624	61498	7078	316	4858	14527	46111	-
2009	1	2100	7127	106583	16128	2425	-	73144	60644	7044	256	3976	22926	37721	-
2008	4	2100	7012	106645	13215	1734	-	90770	76298	7044	291	3109	55193	40432	-
2008	3	2427	7030	110915	17508	454	-	127933	97893	8960	2961	3361	62638	88113	-
2008	2	2874	6763	109447	15887	-	-	113914	83873	8960	3601	3229	45466	78822	-
2008	1	2874	6801	111761	10585	-	-	100360	87895	9000	4287	2305	44660	73154	-
2007	4	2873	6847	115895	25666	415	-	106729	77968	9280	5398	2211	54285	81355	-
2007	3	2204	6879	117151	19300	-	-	113515	79673	9438	6615	255	55637	84032	16
2007	2	1273	6917	118946	20140	-	-	105637	84229	9738	7583	3085	55009	81133	26
2007	1	1401	6954	120959	18217	-	-	89079	73667	9739	8692	2106	48284	63350	26
2006	4	1368	6961	120633	15030	-	-	87336	80710	9738	9754	1941	60990	54841	26

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
2011	3	142325	856	128814	205	3020	4890	38	140	-	5173	-	106
2011	2	128202	630	115265	171	5811	4508	-	104	-	4749	-	1120
2011	1	124627	840	108458	158	1385	10272	-	63	-	-	-	-
2010	4	139486	1306	123962	174	2321	9294	-	62	-	-	-	-
2010	3	123787	143	107030	214	360	13385	-	32	-	-	-	-
2010	2	111067	188	99258	128	1633	8928	-	22	-	-	-	-
2010	1	114094	729	100344	127	1108	8422	-	-	-	-	21	-
2009	4	109458	745	96851	105	1202	5572	-	-	-	4300	14	-
2009	3	103464	464	88627	147	624	4849	-	-	-	3653	17	-
2009	2	102139	1174	88301	153	422	4483	-	-	-	3930	11	-
2009	1	87999	917	78482	426	922	7639	-	-	-	-	3	-
2008	4	111419	3059	113975	712	2256	4409	-	-	-	4740	35	-
2008	3	172802	768	159120	460	287	4021	-	-	-	5476	51	-
2008	2	143431	1326	127705	645	44	3439	-	-	-	4491	28	-
2008	1	136932	255	124965	902	677	3995	-	-	-	4505	50	-
2007	4	138651	540	127956	2397	3837	5725	16	-	57	5106	34	-
2007	3	137515	82	124453	819	781	3614	0	-	38	4127	69	-
2007	2	126584	1247	114734	693	152	3611	-	-	128	3589	57	-
2007	1	115465	306	104816	959	794	3642	-	-	33	3296	59	-
2006	4	123563	3686	107829	1099	712	4859	1	-	143	4067	100	-

Financial Quarter Segments Revenue

year	qrt	Others	Food & Beverages	Plastics Products
2011	3	935	6620	134770
2011	2	1440	7888	118874
2011	1	1063	6400	117164
2010	4	1071	7492	130923
2010	3	1287	5027	117473
2010	2	976	5579	104512
2010	1	1424	5347	107323
2009	4	1352	5717	102389
2009	3	1156	5137	97171
2009	2	1198	5227	95714
2009	1	1233	5233	81533
2008	4	1216	4578	105625
2008	3	1061	5729	166012
2008	2	1248	6038	136145
2008	1	1108	5569	130255
2007	4	1646	5595	136202
2007	3	2897	6272	134140
2007	2	3342	2895	85262
2007	1	2206	5698	142646
2006	4	1259	4358	137972

Financial Quarter Segments Profit

year	qrt	Others	Food & Beverages	Plastics Products
2011	3	306	339	5717
2011	2	68	1076	7228
2011	1	95	175	7012
2010	4	24	433	8142
2010	3	35	130	3567
2010	2	44	111	4359
2010	1	-	243	6193
2009	4	21	34	3992
2009	3	27	63	5621
2009	2	20	135	5692
2009	1	15	144	2671
2008	4	1	241	9210
2008	3	36	181	3229
2008	2	68	424	7258
2008	1	38	376	3729
2007	4	1295	154	10407
2007	3	353	440	6015
2007	2	289	62	4147
2007	1	43	110	4352
2006	4	2657	128	4990

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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ARCHIVES

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5-Years Historical Chart from shareinvestor.com