cwyeoh KLCI stock analysis: KLCI Stock - PWROOT / 7237

POWER ROOT BERHAD

Company Description

Power Root Berhad (formerly Natural Bio Resources Berhad) is an investment holding company. The Company, together with its subsidiaries, is engaged in the manufacture and sale of beverage products. Its operation is divided into local and export market. The local market relates to sales to customers within Malaysia. The export market relates to sales to overseas customers with Middle East Asia being the principal market segment. In January 2009, it opened Restoran Alicafe - Kelana Mall. The restaurant offers a mix of local and western delicacies and drinks. In addition, in January 2009, the Company launched its freeze-dried coffee, the Alicafe Premium Gold Series. The Alicafe Premium Gold Series comprises six new products, four in the form of instant premixed coffee and two in the form of can drinks. The Company's subsidiaries include Power Root (M) Sdn. Bhd., Power Root Marketing Sdn. Bhd., Power Root Manufacturing Sdn. Bhd. and Power Root Nnergy Sdn. Bhd.

Company Info

Listing Date	2007-05-14
Market Capital (Capital Size)	154,500,000 (Small)
Par Value	RM 0.20
Board	Main
Sector	Consumer Products
Major Industry	Beverages Products
Sub Industry	Cafe
Website	http://www.powerroot.com/

My Analysis

Forecast P/E now	(0.515-0.04)/0.0496 = 9.58 (Moderate)
Target Price	0.50+0.04 = 0.54 (PE 10.0, EPS 0.0496, DPS 0.04)
Decision	BUY for dividend
Comment	Revenue increased 5.9% and was fourth consecutive quarter increasing(higher than preceding year corresponding quarter 43.6%), eps increased 81.2% and also higher than preceding year corresponding quarter 305.3%, cash generated from operating more than enough to cover all expenses, lower liquidity ratio but still at high level now, higher gearing ratio at below moderate level now, higher inventory can indicate stronger demand of Group products
First Support Price	0.505
Second Support Price	0.48
Risk Rating	MODERATE

Research House

JF Apex Target Price

0.61 (2011-01-26)

Accounting Ratio

Return on Equity	7.82%
Dividend Yield	7.77%
Profit Margin	10.88%
Tax Rate	23.71%
Asset Turnover	0.8514
Net Asset Value Per Share	0.62
Net Tangible Asset per share	0.6
Price/Net Tangible Asset Per Share	0.82
Cash Per Share	0.12
Liquidity Current Ratio	3.1895
Liquidity Quick Ratio	2.5135
Liquidity Cash Ratio	0.7481
Gearing Debt to Equity Ratio	0.2799
Gearing Debt to Asset Ratio	0.2187
Working capital per thousand Ringgit sale	51.5%
Days to sell the inventory	125
Days to collect the receivables	143
Days to pay the payables	157

Technical Analysis

SMA 20	0.517 (Uptrend 22 days)
SMA 50	0.501 (Uptrend)
SMA 100	0.498 (Uptrend)
SMA 200	0.509 (Same)
MACD (26d/12d)	0.004463 ( 0.00047 )
Signal (9)	0.005725 ( 0.000315 )
MACD Histogram	0.001262 (Bearish trend 6 days)

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue and pbt mainly attributable to the increase in local and export sales from the Group's Fast Moving Consumer Goods business

- Estimate next 4Q eps after 2012 Q3 result announced = 185972*0.08/300000 = 0.0496(ROE 8%), estimate PE on current price 0.515 = 9.58(DPS 0.04)
- Estimate next 4Q eps after 2012 Q2 result announced = 0.0085*4 = 0.034, estimate highest/lowest PE = 15/12.79 (DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 12.76/10.19 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 13.47/11.83 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

PWROOT latest news (English)

PWROOT 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
2012-01-17	2012	3	N/A	N/A	-	2.48%	6.42%	55582	158427	6047	14383	4613	11941	0.0154	0.0398	238034	52062	-	185972	14027	4531	3433	26390	9496	6063	32453	300000	300000	147000	2011-11-30	10.88%	23.71%	0.8514	-	0.62	0.6	0.82	0.12	3.1895	2.5135	0.7481	0.2799	0.2187	51.5%	125	143	157
2011-10-25	2012	2	0.55	0.475	0.02	1.41%	4.04%	52475	102845	2375	8336	2553	7328	0.0085	0.0244	225896	44565	-	181331	5414	4633	4741	26362	781	3960	22402	300000	300000	154500	2011-08-31	4.53%	-	0.8225	-	0.6	0.59	0.87	0.09	3.4262	2.6488	0.6455	0.2458	0.1973	52.9%	127	147	135
2011-07-26	2012	1	0.585	0.475	-	2.58%	2.58%	50370	50370	5961	5961	4775	4775	0.0159	0.0159	227823	42952	-	184871	2209	1919	451	26455	290	741	27196	300000	300000	171000	2011-05-31	11.83%	19.90%	0.8038	-	0.62	0.6	0.95	0.1	3.6787	2.9658	0.8048	0.2323	0.1885	56.4%	114	154	137
2011-04-26	2011	4	0.595	0.525	0.02	1.40%	6.78%	44228	182440	4651	14821	2525	12213	0.0084	0.0407	218900	38803	-	180097	2965	5367	22403	52010	2402	24805	27205	300000	300000	165000	2011-02-28	10.52%	45.71%	0.8334	13.5102	0.6	0.58	0.95	0.09	3.8128	3.111	0.8267	0.2155	0.1773	53.1%	100	145	124
2011-01-25	2011	3	0.665	0.52	-	0.58%	4.96%	38718	138212	924	10170	1136	9688	0.0038	0.0323	240346	44830	-	195516	6861	6764	4333	52190	97	4236	47954	300000	300000	196500	2010-11-30	2.39%	-	0.7306	-	0.65	0.63	1.04	0.17	3.672	3.0069	1.2282	0.2293	0.1865	62.7%	128	138	173
2010-10-26	2011	2	0.815	0.55	0.06	2.05%	4.40%	49799	99494	4014	9246	3986	8552	0.0133	0.0285	238678	44305	-	194373	6941	2730	4458	52183	4211	247	51936	300000	300000	210000	2010-08-31	8.06%	0.70%	0.7191	-	0.65	0.63	1.11	0.18	3.7406	3.1795	1.3406	0.2279	0.1856	65.1%	111	145	178
2010-07-27	2011	1	0.73	0.56	-	2.32%	2.32%	49695	49695	5232	5232	4566	4566	0.0152	0.0152	239546	43102	-	196444	9736	1106	2238	52010	8630	10868	62878	300000	300000	165000	2010-05-31	10.53%	12.73%	0.7084	-	0.65	0.64	0.86	0.22	3.8562	3.2945	1.6431	0.2194	0.1799	66.8%	106	128	166
2010-04-27	2010	4	0.6	0.495	0.02	0.41%	5.31%	37377	153107	994	12982	794	10180	0.0026	0.0339	225358	33488	-	191870	32862	11781	14324	45253	21081	6757	52010	300000	300000	178500	2010-02-28	2.66%	179.88%	0.6794	17.5344	0.64	0.62	0.96	0.18	4.5657	3.7267	1.7746	0.1745	0.1486	70.4%	133	127	145
2010-01-26	2010	3	0.61	0.485	-	1.66%	5.70%	34768	115730	3245	11988	3202	10966	0.0107	0.0366	233011	40578	-196	192433	26098	10371	6845	45223	15727	8882	54105	300000	300000	171000	2009-11-30	9.33%	1.08%	0.607	-	0.64	0.62	0.92	0.19	3.8986	3.1759	1.5102	0.2107	0.1741	76.9%	138	145	144
2009-10-27	2010	2	0.62	0.515	0.02	2.89%	3.97%	47851	80962	6524	8743	5654	7764	0.0188	0.0259	231041	35610	-	195431	17843	8627	6625	45223	9216	2591	47814	300000	300000	174000	2009-08-31	13.63%	13.34%	0.6211	-	0.65	0.63	0.92	0.17	4.4522	3.616	1.5373	0.1822	0.1541	78.3%	143	156	149
2009-07-28	2010	1	0.64	0.45	-	1.08%	1.08%	33111	33111	2219	2219	2110	2110	0.0070	0.0070	225489	29712	-	195777	10041	1528	1643	45223	8513	6870	52093	300000	300000	160500	2009-05-31	6.70%	4.91%	0.6227	-	0.65	0.64	0.84	0.18	5.4212	4.1601	2.0159	0.1518	0.1318	83.9%	179	134	128
2009-04-29	2009	4	0.57	0.32	0.02	0.57%	5.04%	25711	138146	2150	9367	1104	9759	0.0037	0.0325	225625	31958	-	193667	20229	17642	24408	67043	2587	21821	45222	300000	300000	96000	2009-02-28	8.36%	-	0.6123	9.8371	0.65	0.63	0.51	0.16	5.0325	3.7407	1.6333	0.165	0.1416	84.3%	196	149	130
2009-01-21	2009	3	0.345	0.215	-	2.09%	4.49%	36831	112435	4942	11517	4020	8655	0.0134	0.0289	225559	32996	-	192563	9712	13465	22408	69009	3753	26161	42848	300000	300000	78000	2008-11-30	13.42%	18.66%	0.6933	-	0.64	0.63	0.41	0.14	5.4042	4.0813	1.5644	0.1714	0.1463	77.1%	222	151	135
2008-10-21	2009	2	0.325	0.255	0.01	1.69%	2.28%	44760	75604	4942	6574	3450	4634	0.0115	0.0154	247425	43883	-	203542	7350	8317	1141	69009	967	2108	66901	300000	300000	90000	2008-08-31	11.04%	30.19%	0.6582	-	0.68	0.66	0.45	0.22	6.1884	4.9471	2.3762	0.2156	0.1774	89.7%	214	162	152
2008-07-23	2009	1	0.64	0.275	-	0.59%	0.59%	30842	30842	1631	1631	1183	1183	0.0039	0.0039	234731	34639	-	200092	2275	1582	594	69009	693	99	69108	300000	300000	192000	2008-05-31	5.29%	27.47%	0.7087	-	0.67	0.65	0.98	0.23	9.1436	6.9679	3.7671	0.1731	0.1476	89.8%	269	129	111
2008-04-29	2008	4	0.83	0.635	0.04	5.21%	19.72%	43952	178479	10234	47937	10362	39220	0.0345	0.1307	242142	43233	-	198909	8888	27118	81565	3708	18230	63335	67043	300000	300000	244500	2008-02-29	23.28%	-	0.7433	6.2341	0.66	0.65	1.25	0.23	6.6858	5.1162	2.6176	0.2174	0.1785	83.3%	278	130	167
2008-01-28	2008	3	0.99	0.76	-	5.59%	14.85%	43293	136023	14244	37741	10883	28896	0.0363	0.1035	230852	36258	-	194594	735	8797	89193	5428	8062	81131	86559	300000	279167	285000	2007-11-30	32.90%	23.60%	0.5892	-	0.7	0.68	1.4	0.29	8.9968	7.1134	4.2979	0.1863	0.1571	118.4%	316	152	128
2007-10-29	2008	2	1.17	0.92	0.02	5.80%	9.80%	48269	92730	13923	23495	10655	18011	0.0355	0.0670	218131	34423	-	183708	6812	5234	90218	5428	12046	78172	83600	300000	268750	342000	2007-08-31	28.84%	23.47%	N/A	-	0.68	0.66	1.73	0.28	10.1349	8.211	4.9263	0.1874	0.1578	N/A	-	N/A	N/A
2007-07-30	2008	1	N/A	N/A	-	4.25%	4.25%	44461	44461	9572	9572	7356	7356	0.0310	0.0310	244352	71298	-	173054	5077	653	119271	5428	5730	113541	118969	237500	237500	377625	2007-05-31	21.53%	23.15%	N/A	-	0.73	0.71	2.24	0.5	3.7801	3.175	2.2199	0.412	0.2918	N/A	-	N/A	N/A
N/A	2007	4	N/A	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	116420	65827	-	50593	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	2007-02-28	0.00%	-	N/A	-	N/A	N/A	N/A	N/A	1.5566	1.0982	0.1348	1.3011	0.5654	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Deferred tax assets (A-0)	Goodwill on consolidation (A-0)	Intangible assets (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Fixed deposits with licensed banks (A-1)	Inventories (A-1)	Other investments (A-1)	Other receivables, deposits and prepayments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Bank overdraf (L-1)	Current tax liabilities (L-1)	Dividend payable (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	3	-	5239	132	80653	12399	4512	20054	32216	3200	-	79629	2673	1729	-	32	-	7158	-	40470	-
2012	2	-	5239	136	81661	15171	6485	7231	31505	3761	-	74707	2228	1808	-	1087	-	5771	-	33671	-
2012	1	-	5227	139	80524	16917	6184	10504	27505	3630	-	77193	2473	1897	-	826	-	4874	-	32882	-
2011	4	-	5227	143	82154	15450	6285	11755	24181	1281	-	72424	2317	2029	-	56	-	4291	-	30110	-
2011	3	-	5227	147	83706	14298	7122	33656	27401	2642	-	66147	1116	2520	-	50	-	4091	-	37053	-
2011	2	-	5227	151	80854	14758	6754	37178	22869	2699	-	68188	1031	2520	-	105	-	3967	-	36682	-
2011	1	-	5227	155	81206	15566	6154	47534	22281	2074	-	59349	917	2520	-	311	-	4663	-	34691	-
2010	4	-	5227	158	81933	12234	5858	39998	25366	1422	-	53162	734	2520	-	49	-	2425	-	27760	-
2010	3	708	5115	162	80788	11785	6118	43928	27111	934	2181	54181	-	3068	-	-	6000	3279	-	28231	196
2010	2	857	4830	166	80306	11195	6419	38233	27209	599	2440	58787	-	3068	-	730	-	3499	-	28313	-
2010	1	1093	4830	170	74954	11270	5549	42441	33599	-	2886	48697	-	3068	-	96	-	2483	-	24065	-
2009	4	1105	4830	173	74128	9723	4530	37462	37320	-	1389	54965	-	3068	-	4	-	4124	-	24762	-
2009	3	-	4830	177	72531	6350	4197	36498	36235	-	2362	62379	1843	3763	-	-	3000	2430	14067	7893	-
2009	2	-	4830	181	68186	19411	-	47489	34948	-	9087	63293	1737	13992	-	1884	-	1469	11878	12923	-
2009	1	-	4830	185	61977	7126	-	61982	39913	-	6297	52421	1808	14486	-	328	-	1521	11063	5433	-
2008	4	-	4829	189	60865	9043	1697	59966	41380	-	1993	62180	1711	15159	-	66	-	1441	13412	11444	-
2008	3	-	4830	195	44631	7787	-	78772	37933	-	2050	54654	533	15585	-	2279	-	2434	8380	7047	-
2008	2	-	4830	196	41116	5943	-	77657	32648	-	1136	54605	520	16933	-	1744	-	2090	6472	6664	-
2008	1	-	4829	201	36744	18134	-	100835	32425	-	2116	49068	366	17341	-	773	-	31035	11830	9953	-
2007	4	-	4829	204	36422	4771	-	1721	22077	-	2347	44049	380	17287	1064	786	-	26623	8351	11336	-

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Depreciation & amortisation	Changes in inventories of finished goods	Raw material & consumables used	Other expenses	Staff costs
2012	3	55582	1434	40	1290	15732	-	1580	-	27781	-	5772
2012	2	52475	178	105	85	-	-	1596	-	26892	16687	4735
2012	1	50370	1186	177	361	-	-	1580	-	21174	16861	4978
2011	4	44228	2126	21	1446	-	-	1618	4766	15042	23357	5793
2011	3	38718	212	117	419	-	-	1509	2162	16073	14829	3523
2011	2	49799	28	119	100	-	-	1651	869	24661	13373	5212
2011	1	49695	666	289	40	-	-	1457	-	20250	17456	4971
2010	4	37377	1788	25	1258	-	-	1519	1232	16135	13137	5643
2010	3	34768	35	79	25	-	8	1335	4659	19152	11453	4138
2010	2	47851	870	144	445	-	-	1294	8623	12010	16327	3374
2010	1	33111	109	97	498	-	-	1260	1327	12116	11818	3776
2009	4	25711	3254	27	2572	-	-	1232	3181	11766	15792	4797
2009	3	36831	922	400	82	-	-	1182	283	16548	9966	3592
2009	2	44760	1492	270	57	-	-	1065	1907	17763	15382	3374
2009	1	30842	448	291	82	-	-	959	77	11363	13670	3087
2008	4	43952	128	464	559	-	-	797	4719	17795	6408	4094
2008	3	43293	3361	209	63	-	-	687	6567	21168	10568	3047
2008	2	48269	3268	409	532	-	-	648	850	19708	10305	2958
2008	1	44461	2216	697	180	-	-	564	2763	19595	13892	3084

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

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