Company Info
My Analysis
Accounting Ratio
My notes based on 2010 Quarter 3 report (number in '000):-
- The Group reported higher revenue in this reporting quarter as compared to the corresponding quarter in the previous year is due to increasing demand and consolidation of the newly acquired subsidiary, Tong Heer Aluminium Industries Sdn Bhd and its subsidiaries
- The higher pbt in this reporting quarter as compared to the corresponding quarter in the previous year is due to lower cost of raw materials and higher selling price for finished goods produced. In addition, profit for the quarter also include adjustment for negative goodwill of RM 5.1 million, being recognition of excess of fair value of Tong Heer Aluminium Industries Sdn Bhd and its subsidiaries identifiable assets, liabilities and contingent liabilities over the cost of investment
- The higher profit before taxation in the current reporting quarter as compared to the preceding quarter is due to lower cost of raw materials and cost containment measures undertaken
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0375*4 = 0.15(0.0375 is average eps of recent 2 quarter exclude non-repeatable profit RM 5.1 million), estimate PE on current price 2.67 = 17.47(DPS 0.05)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.154*1.1 = 0.1694(0.154 is recent 4Q cum_eps), estimate highest/lowest PE = 11.22/9.92 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0347(average of recent 3Q)*4 = 0.1388, estimate highest/lowest PE = 13.54/11.53 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0469*4 = 0.1876, estimate highest/lowest PE = 10.61/8.8 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0278*4 = 0.1112, estimate highest/lowest PE = 16.19/14.39 (DPS 0.05)
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| Market Capital (Capital Size) | 340,238,100 (Small) |
| Par Value | RM 1.00 |
My Analysis
| Forecast P/E now | (2.67-0.05)/0.15 = 17.47 (High) |
| Target Price | 1.50+0.05 = 1.55 (PE 10.0, EPS 0.15, DPS 0.05) |
| Decision | NOT BUY |
| Comment | Revenue is highest since FY07Q4, eps is highest since FY08Q3, neither free nor positive net cash flow, liquidity ratio decreasing to moderate level now, gearing ratio increasing to below moderate now, inventory turnover period increasing but this will be acceptable if coming quarter also high revenue |
| First Support Price | 2.2 |
| Second Support Price | 1.8 |
| Risk Rating | HIGH |
Accounting Ratio
| Return on Equity | 6.99% |
| Dividend Yield | 1.87% |
| Profit Margin | 21.56% |
| Tax Rate | 59.37% |
| Asset Turnover | 0.6045 |
| Net Asset Value Per Share | 2.29 |
| Net Tangible Asset per share | 2.29 |
| Price/Net Tangible Asset Per Share | 0.81 |
| Cash Per Share | 0.63 |
| Liquidity Current Ratio | 2.742 |
| Liquidity Quick Ratio | 1.3206 |
| Liquidity Cash Ratio | 0.7892 |
| Gearing Debt to Equity Ratio | 0.3676 |
| Gearing Debt to Asset Ratio | 0.227 |
| Working capital per thousand Ringgit sale | 62.5% |
| Days to sell the inventory | 219 |
| Days to collect the receivables | 69 |
| Days to pay the payables | 10 |
My notes based on 2010 Quarter 3 report (number in '000):-
- The Group reported higher revenue in this reporting quarter as compared to the corresponding quarter in the previous year is due to increasing demand and consolidation of the newly acquired subsidiary, Tong Heer Aluminium Industries Sdn Bhd and its subsidiaries
- The higher pbt in this reporting quarter as compared to the corresponding quarter in the previous year is due to lower cost of raw materials and higher selling price for finished goods produced. In addition, profit for the quarter also include adjustment for negative goodwill of RM 5.1 million, being recognition of excess of fair value of Tong Heer Aluminium Industries Sdn Bhd and its subsidiaries identifiable assets, liabilities and contingent liabilities over the cost of investment
- The higher profit before taxation in the current reporting quarter as compared to the preceding quarter is due to lower cost of raw materials and cost containment measures undertaken
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0375*4 = 0.15(0.0375 is average eps of recent 2 quarter exclude non-repeatable profit RM 5.1 million), estimate PE on current price 2.67 = 17.47(DPS 0.05)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.154*1.1 = 0.1694(0.154 is recent 4Q cum_eps), estimate highest/lowest PE = 11.22/9.92 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0347(average of recent 3Q)*4 = 0.1388, estimate highest/lowest PE = 13.54/11.53 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0469*4 = 0.1876, estimate highest/lowest PE = 10.61/8.8 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0278*4 = 0.1112, estimate highest/lowest PE = 16.19/14.39 (DPS 0.05)
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