KLCI Stock - XINQUAN / 5155 - 2013 Quarter 1

XINGQUAN INTERNATIONAL SPORTS HOLDINGS LIMITED


Company Description

XINGQUAN INTERNATIONAL SPORTS HOLDINGS LIMITED is engaged in investment holding and provision of management services. The Company, along with its subsidiaries, is principally engaged in the manufacturing of shoe soles and shoes, and sales of shoe soles, shoes, apparels and accessories. The Company's subsidiaries include Addnice Holdings Limited (Addnice Holdings), Addnice (China) Co., Ltd. (Addnice China), Fujian Aidinaisi Sports Goods Co., Ltd. (Addnice Sports) and Xingquan (Fujian) Shoes Plastics Co. Ltd. (Xingquan Plastics).

Company Info 

Listing Date	2009-07-10
IPO Price	2.1
Market Capital (Capital Size)	227,424,200 (Small)
Par Value	USD 0.10
Board	Main
Sector	Consumer Products
Major Industry	Footwear
Sub Industry	Apparel & Accessories
Website	http://www.xingquan-international.com/

My Analysis 

Forecast P/E now	(0.74-0.02)/0.4021 = 1.79 (Moderate)
Target Price	0.80+0.02 = 0.82 (PE 2.0, EPS 0.4021, DPS 0.02)
Decision	BUY if stock price sustain and uptrend above 0.7
Comment	Revenue increased 6.1% but lower than preceding year corresponding quarter 4%, eps increased 108.3% and also higher than preceding year corresponding quarter 3.8%, cash generated from operating more than enough to cover all expenses, gross margin recorded vey high above 30%, liquidity ratio indicate very firm position to meet current obligation but holding too many cash and pay low dividend, gearing ratio indicate low liabilities risk, all accounting turnover period is good which can generate free cash flow, footwear business weakening, shoe soles business maintain, apparels & accessories business growth
First Support Price	0.7
Second Support Price	0.665
Risk Rating	MODERATE

Research House

Mercury Target Price	1.1 (2012-08-27)
CIMB Target Price	1.01 (2012-09-03)

Accounting Ratio 

Return on Equity	24.07%
Dividend Yield	2.70%
Gross Profit Margin	34.56%
Operating Profit Margin	22.75%
Net Profit Margin	22.62%
Tax Rate	18.31%
Asset Turnover	1.1589
Net Asset Value Per Share	2.04
Net Tangible Asset per share	2.04
Price/Net Tangible Asset Per Share	0.36
Cash Per Share	1.11
Liquidity Current Ratio	6.7959
Liquidity Quick Ratio	6.4293
Liquidity Cash Ratio	4.0319
Gearing Debt to Equity Ratio	0.1375
Gearing Debt to Asset Ratio	0.1209
Working capital per thousand Ringgit sale	59.2%
Days to sell the inventory	20
Days to collect the receivables	89
Days to pay the payables	40

Technical Analysis 

SMA 10	0.73 (Uptrend)
SMA 20	0.736 (Downtrend 81 days)
SMA 50	0.752 (Downtrend)
SMA 100	0.812 (Downtrend)
SMA 200	0.866 (Same)
MACD (26d/12d)	-0.008821 ( 0.001633 )
Signal (9)	-0.009375 ( 0.000139 )
MACD Histogram	0.000554 (Bullish trend 1 day)
Bolinger Upper Band	0.759
Bolinger Lower Band	0.713

My notes based on 2013 quarter 1 report (number in '000):
- Lower revenue than FY12Q1 due to decrease in sales volume of shoe and accessories

- Higher pbt due to increase in average selling price of apparel

- Estimate next 4Q eps after 2013 Q1 result announced = 0.4021, estimate PE on current price 0.74 = 1.79
- Estimate next 4Q eps after 2012 Q4 result announced = 0.4021, estimate highest/lowest PE = 2.04/1.69 (DPS 0.02)
- Estimate next 4Q eps after 2012 Q3 result announced = 68622*2.2/307330 = 0.4912, estimate highest/lowest PE = 1.87/1.69
- Estimate next 4Q eps after 2012 Q2 result announced = 553353*0.24/307330 = 0.4321, estimate highest/lowest PE = 2.36/1.94
- Estimate next 4Q eps after 2012 Q1 result announced = 0.4, estimate highest/lowest PE = 2.6/1.66
- Estimate next 4Q eps after 2011 Q4 result announced = 0.3845*1.05*0.8696 = 0.3511(adjustment of issue new securities), estimate highest/lowest PE = 2.76/2.18
- Estimate next 4Q eps after 2011 Q3 result announced = 0.3154*1.1 = 0.3469, estimate highest/lowest PE = 3.32/2.31 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.3452*1.1 = 0.3797, estimate highest/lowest PE = 3.56/2.82 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.3452*1.1 = 0.3797, estimate highest/lowest PE = 4.87/3.56 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.095*4 = 0.38(0.095 is average of recent 2Q minus little eps due to end of tax exemption and reduction), estimate highest/lowest PE = 4.93/2.91 (DPS 0.025)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1584*2*1.1 = 0.3485, estimate highest/lowest PE = 3.77/3 (DPS 0.025)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0834*4 = 0.3336, estimate highest/lowest PE = 4.2/3.15
- Estimate next 4Q eps after 2009 Q4 result announced = 0.4288, estimate highest/lowest PE = 3.59/3.03

XINQUAN latest news (English)

XINQUAN 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	c_asset	liab	c_liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	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
2012-11-16	2013	1	N/A	N/A	-	6.24%	6.24%	199199	199199	45068	45068	36818	36818	0.1198	0.1198	712542	573460	86111	84383	-	626431	42073	2685	N/A	300839	39388	39388	340227	307330	307330	227424	2012-09-30	34.56%	22.75%	22.62%	18.31%	1.1589	-	2.04	2.04	0.36	1.11	6.7959	6.4293	4.0319	0.1375	0.1209	59.2%	20	89	40
2012-08-27	2012	4	0.84	0.7	0.02	3.65%	25.52%	187821	844149	26511	158306	17662	123575	0.0575	0.4021	661320	521885	71676	69948	-	589644	102848	9451	12597	228223	93397	80800	309023	307330	307330	262767	2012-06-30	23.29%	14.25%	14.12%	33.38%	1.2611	2.1264	1.92	1.92	0.45	0.98	7.461	7.1417	4.3009	0.1216	0.1084	54.2%	14	87	31
2012-05-17	2012	3	0.92	0.83	-	7.84%	21.28%	216786	638424	47506	128199	37942	103023	0.1235	0.3352	644980	505114	71869	70143	-	573111	40052	6677	12253	221998	33375	21122	243120	307330	307330	262767	2012-03-31	36.50%	22.04%	21.91%	20.13%	1.3059	-	1.86	1.86	0.46	0.79	7.2012	6.8316	3.4661	0.1254	0.1114	51.6%	17	102	30
2012-02-22	2012	2	1.02	0.84	-	6.34%	13.92%	221942	436583	38646	83552	30680	67387	0.0998	0.2193	643077	498829	89724	87937	-	553353	16906	2838	13695	229867	14068	373	230240	307330	307330	295036	2011-12-31	32.82%	17.52%	17.41%	20.61%	1.2552	-	1.8	1.8	0.53	0.75	5.6726	5.3783	2.6182	0.1621	0.1395	50.9%	17	110	43
2011-11-18	2012	1	1.04	0.665	-	7.33%	7.33%	207465	207465	43406	43406	35481	35481	0.1154	0.1154	607390	462345	87792	86016	-	519598	18101	1150	8371	222181	19251	27622	194559	307330	307330	287353	2011-09-30	31.95%	21.11%	20.92%	18.26%	1.2908	-	1.69	1.69	0.55	0.65	5.3751	5.0774	2.3245	0.169	0.1445	48.0%	17	110	40
2011-08-26	2011	4	1.06	0.84	-	12.97%	36.81%	196081	748207	46362	155673	44373	125979	0.1444	0.4099	580991	434146	96749	94974	-	484242	13512	66638	11426	292775	53126	64552	228223	307330	307330	301183	2011-06-30	29.89%	23.85%	23.64%	4.29%	1.2816	2.3907	1.58	1.58	0.62	0.75	4.5712	4.3042	2.4177	0.1998	0.1665	45.5%	18	88	41
2011-05-18	2011	3	1.2	0.85	-	8.80%	23.20%	181695	537064	38415	106329	30103	79380	0.0980	0.2583	519207	381898	112208	104452	-	406999	43626	63451	4581	284788	107077	111658	173130	307330	307330	356502	2011-03-31	31.10%	21.47%	21.14%	21.64%	1.3178	-	1.32	1.32	0.88	0.55	3.6562	3.4165	1.6165	0.2757	0.2161	40.5%	19	100	47
2011-02-18	2011	2	1.4	1.12	-	6.76%	14.91%	198748	367967	35807	70324	23143	51026	0.0753	0.1688	501441	383938	111851	104017	-	389590	73436	39352	5236	294883	112788	107552	187331	307330	302319	430262	2010-12-31	32.79%	18.27%	18.02%	35.37%	1.3299	-	1.29	1.29	1.09	0.57	3.6911	3.4499	1.697	0.2871	0.2231	42.0%	20	100	50
2010-11-18	2011	1	1.64	1.35	-	8.09%	8.09%	168093	168093	34286	34286	27697	27697	0.0901	0.0901	480904	393637	117558	115716	-	363346	28382	6220	599	292492	22162	21563	314055	307330	307330	491728	2010-09-30	30.47%	20.66%	20.40%	19.22%	1.347	-	1.18	1.18	1.36	0.95	3.4018	3.2733	2.5157	0.3235	0.2445	42.9%	12	49	66
2010-08-16	2010	4	1.9	1.4	0.025	17.07%	90.23%	135695	576678	27214	127194	19139	101160	0.0628	0.3319	431810	347972	89614	87956	-	342196	105992	55583	137451	85612	50409	187860	273472	304804	304804	579127	2010-06-30	29.62%	20.31%	20.06%	29.67%	1.391	5.7249	1.12	1.12	1.7	0.9	3.9562	3.7466	3.1182	0.2619	0.2075	43.3%	17	34	49
2010-05-17	2010	3	1.9	1.13	-	27.74%	72.43%	164340	450979	37369	98986	31104	81205	0.1023	0.2672	442624	378940	111538	111538	-	331086	84664	32701	138734	84852	51963	190697	275549	303965	303965	352599	2010-03-31	33.34%	22.92%	22.74%	16.77%	1.2828	-	1.09	1.09	1.06	0.94	3.3974	3.249	2.5714	0.3369	0.252	47.1%	16	49	79
2010-02-25	2010	2	1.34	1.07	0.025	25.33%	42.23%	179660	311254	34898	59854	28394	47350	0.0939	0.1566	432797	393276	112247	112247	-	320550	55672	6216	135474	91737	49456	184930	276667	302319	302319	344643	2009-12-31	35.04%	19.53%	19.42%	18.64%	1.1786	-	1.06	1.06	1.08	0.99	3.5037	3.3439	2.6757	0.3502	0.2594	55.1%	20	54	91
2009-11-11	2010	1	1.4	1.05	-	19.71%	19.71%	120969	120969	27616	27616	22101	22101	0.0743	0.0743	382760	346204	89348	89348	-	293412	29885	1575	112273	83962	28310	140583	224545	297308	297308	392446	2009-09-30	36.99%	23.11%	22.83%	19.97%	1.1543	-	0.99	0.99	1.33	0.87	3.8748	3.6775	2.907	0.3045	0.2334	58.1%	23	57	102
2009-08-24	2009	4	1.54	1.3	-	20.54%	86.19%	102829	403265	24778	102926	20424	85684	0.0949	0.3983	215530	181311	103417	103417	-	112113	86839	4554	30275	35611	82285	52010	87621	215130	215130	286122	2009-06-30	35.01%	24.60%	24.10%	17.57%	1.9224	3.3393	0.52	0.52	2.56	0.45	1.7532	1.5756	0.9361	0.9224	0.4798	18.8%	26	58	97
2009-07-07	2009	3	1.91	1.3	-	22.51%	65.75%	106645	300940	26699	78277	22374	65367	0.1040	0.3038	200205	162353	97890	97890	-	102315	46642	2849	26889	35670	43793	16904	52574	215130	215130	N/A	2009-03-31	35.11%	25.52%	25.04%	16.20%	1.9927	-	0.48	0.48	N/A	0.31	1.6585	1.5094	0.6909	0.9568	0.4889	16.2%	21	73	86
N/A	2009	2	N/A	N/A	-	22.96%	45.35%	111374	203752	27453	54089	22824	45086	0.1061	0.2096	N/A	N/A	N/A	N/A	-	N/A	42710	2429	36581	37407	40281	3700	41107	215130	215130	N/A	2008-12-31	38.68%	25.15%	24.65%	16.86%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2009	1	N/A	N/A	-	22.66%	22.66%	93482	93482	26954	26954	22527	22527	0.1047	0.1047	N/A	N/A	N/A	N/A	-	N/A	16719	1368	11085	37854	15351	4266	42120	215130	215130	N/A	2008-09-30	37.87%	29.40%	28.83%	16.42%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2008	4	N/A	N/A	-	N/A	N/A	87439	327639	21689	75842	18624	66596	0.0866	0.3096	186367	148112	86954	86954	504	99413	58477	6648	47862	34374	51829	3967	38341	215130	215130	N/A	2008-06-30	31.98%	25.39%	24.80%	14.13%	0.4692	-	0.46	0.46	N/A	0.23	1.7033	1.5324	0.5802	0.8791	0.4666	69.9%	91	346	357

Financial Quarter Balance Sheet

year	qrt	Leasehold land use rights (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Inventories (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2013	1	6562	132520	340228	30934	202298	1728	8250	14600	61533	-
2012	4	6597	132838	300839	22334	198712	1728	7191	14600	48157	-
2012	3	6626	133240	243120	25924	236070	1726	9564	14588	45991	-
2012	2	6896	137352	230240	25879	242710	1787	7966	14098	65873	-
2012	1	6886	138159	199948	25609	236788	1776	8145	19006	58865	-
2011	4	6918	139927	229623	25358	179165	1775	8488	28995	57491	-
2011	3	6430	130879	168850	25037	188011	7756	7916	36059	60477	-
2011	2	6526	110977	176513	25087	182338	7834	5773	36418	61826	-
2011	1	6484	80783	291104	14867	87666	1842	7418	29211	79087	-
2010	4	6594	77244	274266	18439	55267	1658	4757	29558	53641	-
2010	3	10650	53034	286810	16558	75572	-	6487	25515	79536	-
2010	2	4409	35112	300338	17934	75004	-	6505	23443	82299	-
2010	1	4486	32070	259736	17626	68842	-	6071	5080	78197	-
2009	4	4242	29977	96807	18363	66141	-	4354	29247	69816	-
2009	3	4758	33094	67637	14597	80119	-	4817	32632	60441	-
2008	4	4664	33591	50455	14862	82795	-	3066	25674	58214	504

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Selling and distribution costs
2013	1	199199	8250	130346	245	332	3948	-	19924
2012	4	187821	8849	144083	251	392	5009	-	12359
2012	3	216786	9564	137650	272	284	5845	-	25797
2012	2	221942	7966	149103	245	402	7279	-	27071
2012	1	207465	7925	141186	394	2553	4649	-	20383
2011	4	196081	1989	137469	405	258	5773	-	6330
2011	3	181695	8312	125184	595	154	5709	-	11946
2011	2	198748	12664	133587	513	203	7407	-	21637
2011	1	168093	6589	116874	444	250	3674	-	13065
2010	4	135695	8075	95500	349	1886	2428	-	12090
2010	3	164340	6265	109549	305	189	3975	-	13331
2010	2	179660	6504	116700	194	189	9173	-	18884
2010	1	120969	5515	76220	337	98	8561	-	8333
2009	4	102829	4354	66832	514	99	3781	0	7023
2009	3	106645	4325	69198	519	84	1706	-	8607
2009	2	111374	4629	68289	563	175	3956	-	11288
2009	1	93482	4427	58083	533	477	1399	-	6990
2008	4	87439	3065	59478	508	2591	1612	0	6743

Financial Quarter Segments Revenue

year	qrt	Shoe soles	Footwear	Apparels & Accessories
2013	1	99603	129746	179966
2012	4	98817	112849	164052
2012	3	101280	176862	167679
2012	2	102958	172260	166580
2012	1	103666	157588	164045
2011	4	90958	130464	133901
2011	3	73848	168103	144131
2011	2	68603	183375	156533
2011	1	71406	155158	120234
2010	4	67316	149022	83017
2010	3	53275	172316	129893
2010	2	57369	162781	137739
2010	1	49233	139628	73278
2009	4	40933	110883	63352
2009	3	41583	118846	62351
2009	2	43049	119473	59339
2009	1	44051	99539	40429

Financial Quarter Segments Profit

year	qrt	Shoe soles	Footwear	Apparels & Accessories
2013	1	32607	50746	59128
2012	4	18220	29661	39614
2012	3	35554	74934	52256
2012	2	33644	60863	50157
2012	1	32823	55026	48342
2011	4	8977	60097	22098
2011	3	37929	21376	22429
2011	2	17533	37190	15261
2011	1	21500	32964	17825
2010	4	19212	24624	9280
2010	3	14546	46592	23026
2010	2	15712	44624	18700
2010	1	14085	47819	12921
2009	4	10574	34296	10648
2009	3	11147	32925	9522
2009	2	7993	38274	9975
2009	1	11731	33190	8681

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 = average working capital per thousand Ringgit sale
inv_d = average days to sell the inventory, rec_d = Average days to collect the receivables

CURRENT

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