KLCI Stock - KFC / 3492 - 2011 Quarter 2

KFC HOLDINGS (M) BERHAD

Company Description

KFC HOLDINGS (MALAYSIA) BERHAD is a Malaysia-based investment holding company. Through its subsidiaries, the Company operates in three segments, namely restaurants, integrated poultry and ancillary. Its integrated poultry operations include breeder farms and hatchery, feed mills, poultry farms, contract broiler farming, and processing and further processing plants. Its ancillary support system encompasses sauce manufacturing, as well as bakery and commissary operations. As of December 31, 2009, the Company operated 475 restaurants across Malaysia, 77 stores in Singapore, nine restaurants in Brunei and 72 restaurants in India. In 2009, the Company had a total of 43 RasaMas restaurants in Malaysia and Brunei and 35 Kedai Ayamas stores across Malaysia. On December 15, 2009, the Company had acquired the entire issued and paid-up capital of Rasamas Terminal Larkin Sdn Bhd and Rasamas Melaka Sdn Bhd.

Company Info

Listing Date	1988-11-11
Market Capital (Capital Size)	2,617,777,087 (Large)
Par Value	RM 0.50
Board	Main
Sector	Trading/Services
Major Industry	Restaurants
Sub Industry	Poultry
Website	http://www.kfcholdings.com.my

My Analysis

Forecast P/E now	(3.3-0.085)/0.2002 = 16.06 (High)
Target Price	3.20+0.085 = 3.29 (PE 16.0, EPS 0.2002, DPS 0.085)
Decision	Not interested unless stock price got uptrend signal
Comment	Revenue increased 7.1% and also higher than preceding year corresponding quarter 13.8%, eps increased 0.7% and also higher than preceding year corresponding quarter 1.1%, cash generated from operating enough to cover financing expenses but remaining not enough for investing expenses hence spent 21% of Group cash to cover, slightly lower liquidity ratio at low level now, slightly lower gearing ratio at moderate level now, all accounting ratio are good
First Support Price	3.17
Second Support Price	3.0
Risk Rating	MODERATE

Research House

BIMB Target Price	4.3 (2011-02-22)
Maybank Target Price	3.97 (2011-02-22)
AMMB Target Price	4.15 (2011-03-03)
OSK Target Price	4.15 (2011-05-25)
MIDF Target Price	4.12 (2011-06-14)
RHB Target Price	4.25 (2011-07-25)

Accounting Ratio

Return on Equity	16.13%
Dividend Yield	2.58%
Profit Margin	7.67%
Tax Rate	30.02%
Asset Turnover	1.6065
Net Asset Value Per Share	1.29
Net Tangible Asset per share	1.19
Price/Net Tangible Asset Per Share	3.24
Cash Per Share	0.13
Liquidity Current Ratio	1.141
Liquidity Quick Ratio	0.6354
Liquidity Cash Ratio	0.2421
Gearing Debt to Equity Ratio	0.5878
Gearing Debt to Asset Ratio	0.3664
Working capital per thousand Ringgit sale	2.3%
Days to sell the inventory	33
Days to collect the receivables	23
Days to pay the payables	56

My notes based on 2011 quarter 2 report (number in '000):-
- The Group’s revenue for the period under review improved primarily from its continuing strategy of network expansion and its effective KFC marketing programs. The growth in the integrated poultry segment was attributed to better sales to the restaurants and retail outlets and the continuing improvement in its local open market sales and export sales

- Malaysia operations revenue and profit growth were due to:-
i) continuing network expansion where 19 new KFC restaurants were opened during the period under review
ii) the introduction of innovative new products and promotions such as the 500th restaurant celebration Combo, KFC Fish Donut, KFC Lunch Treats, new thematic campaign – “So Good”, KFC Chicken Chop with mushroom gravy, new AM Breakfast menu and KFC Ole Pocketful

- Singapre operations introduction of new products such as the Fortune Feast, KFC Mandarin Orange egg tarts, Blueberry Pancakes, Ultimate Roasta Box and value products such as KFC Snacker and Hearty Deal drove sales and transactions at the restaurants. The higher throughput during the period under review improved its restaurants profitability

- India operations currently operates 9 outlets of KFC as at end June 2011 as compared to 2 outlets at end June prior year. Its outlets registered encouraging sales but the profitability of its new additions was hampered by initial start-up costs

- Integrated Poultry segment registered improved sales to the KFC restaurants and better sales of its Ayamas products to the local open market and export market, its profitability was negatively affected by the higher cost of broiler purchases from the open market to supplement the requirements of its expanded KFC restaurants network and its Rasamas restaurants performance. Management is currently consolidating and rationalising the Rasamas restaurants chain to improve its profitability

- Ancillary segment got negative contribution partly attributed to its KFCH International College operations which expanded its facilities at both its Bandar Dato Onn and Puchong campuses. Substantive marketing programs and talks have been developed and being implemented progressively to increase its students intake. In addition, the profitability of its sauce manufacturing operations was dampened by the increased sugar prices

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0455*4*1.1 = 0.2002, estimate PE on current price 3.3 = 16.06(DPS 0.085)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.061+0.0452)*2*1.1 = 0.2336, estimate highest/lowest PE = 16.8/14.49 (DPS 0.085)

KFC latest news (English)

KFC 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
2011-08-24	2011	2	N/A	N/A	0.03	3.48%	6.94%	690090	1334309	52963	105613	36356	72480	0.0455	0.0907	1649368	604351	16932	1045017	118290	111930	34044	131712	6360	27684	104028	799420	799420	3085761	2011-06-30	7.67%	30.02%	1.6065	-	1.29	1.19	3.24	0.13	1.141	0.6354	0.2421	0.5878	0.3664	2.3%	33	23	56
2011-05-24	2011	1	4.01	3.47	-	3.57%	3.57%	644219	644219	52650	52650	36124	36124	0.0452	0.0452	1608106	597404	16051	1010702	51652	49822	39462	131712	1830	37632	94080	799180	799180	3076843	2011-03-31	8.17%	30.01%	1.5956	-	1.24	1.15	3.35	0.12	1.1433	0.6231	0.2218	0.6006	0.3715	2.4%	34	24	59
2011-02-21	2010	4	4.11	3.55	0.055	4.84%	15.60%	683924	2522358	63393	221833	48695	156869	0.0610	0.1965	1583032	577760	15025	1005272	264514	253672	3595	124465	10842	7247	131712	798469	798469	3074105	2010-12-31	9.27%	22.92%	1.5934	19.5966	1.24	1.15	3.35	0.16	1.1652	0.6839	0.3157	0.5835	0.365	2.7%	32	22	57
2010-11-24	2010	3	4.15	3.46	-	4.35%	12.31%	631551	1838434	56236	158440	38204	108174	0.0481	0.1361	1409113	530246	15197	878867	144037	158045	161	123449	14008	14169	109280	794766	794766	3115482	2010-09-30	8.90%	30.05%	1.7477	-	1.09	0.99	3.96	0.14	1.1981	0.739	0.2781	0.6139	0.3763	3.2%	29	27	52
2010-08-24	2010	2	11.4	2.7	0.1	4.20%	8.22%	606207	1206883	52086	102204	35727	69970	0.1802	0.3529	1325463	474279	14065	851184	79831	98798	15965	123449	18967	34932	88517	198275	198275	2121542	2010-06-30	8.59%	29.95%	1.823	-	4.22	3.85	2.78	0.45	1.1877	0.6945	0.2469	0.5666	0.3578	2.8%	29	24	48
2010-05-25	2010	1	11.5	8.3	-	4.08%	4.08%	600676	600676	50118	50118	34243	34243	0.1727	0.1727	1297645	458570	13306	839075	3229	37549	10153	123449	40778	50931	72518	198275	198275	1685337	2010-03-31	8.34%	30.13%	1.8275	-	4.16	3.79	2.24	0.37	1.2445	0.7143	0.2073	0.5553	0.3534	3.6%	31	27	50
2010-02-24	2009	4	8.5	7.59	0.16	4.35%	16.21%	624229	2297431	54736	190015	35024	130403	0.1766	0.6577	1290470	486222	12491	804248	243261	158716	57757	96661	84545	26788	123449	198275	198275	1574303	2009-12-31	8.77%	35.11%	1.7803	12.0726	3.99	3.65	2.18	0.62	1.2238	0.7527	0.3375	0.6141	0.3768	3.6%	30	24	56
2009-11-24	2009	3	8.01	7.3	-	4.56%	12.43%	585151	1673202	49443	135279	35002	95379	0.1765	0.4810	1209512	442166	12287	767346	132096	81642	36344	97985	50454	14110	112095	198275	198275	1467235	2009-09-30	8.45%	28.11%	1.881	-	3.81	3.46	2.14	0.57	1.2986	0.819	0.3496	0.5856	0.3656	4.2%	27	23	47
2009-08-19	2009	2	8.0	6.51	0.08	4.26%	8.12%	561412	1088051	44903	85836	31680	60377	0.1598	0.3045	1161822	418513	11591	743309	49652	45326	23988	97985	4326	19662	78323	198275	198275	1447407	2009-06-30	8.00%	28.06%	1.9301	-	3.69	3.34	2.19	0.4	1.3448	0.8046	0.2746	0.572	0.3602	4.4%	27	23	43
2009-05-21	2009	1	7.55	6.7	-	3.92%	3.92%	526639	526639	40933	40933	28697	28697	0.1447	0.1447	1160066	428243	10968	731823	11559	12663	4471	97985	1104	3367	101352	198275	198275	1368097	2009-03-31	7.77%	28.09%	1.9058	-	3.64	3.28	2.1	0.51	1.1647	0.7166	0.2988	0.5941	0.3692	2.5%	27	22	44
2009-02-26	2008	4	7.3	6.75	0.14	4.04%	16.88%	601907	2179788	40024	167457	28385	118535	0.1432	0.5978	1154407	452017	10232	702390	135476	168280	8274	139063	32804	41078	97985	198275	198275	1397838	2008-12-31	6.65%	28.25%	1.8882	11.7926	3.49	3.14	2.25	0.6	1.1527	0.7014	0.3366	0.6531	0.3916	2.5%	29	20	50
2008-11-20	2008	3	7.65	6.8	-	4.59%	13.16%	552440	1577881	44124	127433	31451	90150	0.1586	0.4547	1119261	434446	10250	684815	81134	112660	3921	140358	31526	35447	104911	198275	198275	1368097	2008-09-30	7.99%	27.88%	1.8505	-	3.4	3.05	2.26	0.63	1.1719	0.6965	0.3559	0.644	0.3882	2.9%	32	20	52
2008-08-20	2008	2	7.0	5.5	0.08	4.66%	8.99%	529843	1025441	43202	83309	30411	58699	0.1534	0.2960	1051775	398723	9938	653052	67636	65022	17159	140358	2614	14545	125813	198275	198275	1368097	2008-06-30	8.15%	28.24%	1.8516	-	3.24	2.89	2.39	0.72	1.1682	0.7453	0.4496	0.62	0.3791	2.7%	28	17	51
2008-05-21	2008	1	8.4	5.7	-	4.42%	4.42%	495598	495598	40107	40107	28288	28288	0.1427	0.1427	1031492	391835	9347	639657	22362	19523	1072	140358	2839	1767	142125	198275	198275	1288787	2008-03-31	8.09%	28.17%	1.7675	-	3.18	2.83	2.3	0.72	1.3549	0.875	0.5472	0.6217	0.3799	5.1%	27	17	52
2008-02-22	2007	4	6.8	5.5	0.12	5.21%	17.12%	493263	1730371	45191	150624	31714	104269	0.1599	0.5259	1006128	397187	6920	608941	174528	83406	100001	149237	91122	8879	140358	198275	198275	1249132	2007-12-31	9.16%	28.95%	1.7198	11.9799	3.04	2.69	2.34	0.71	1.288	0.8518	0.5451	0.6598	0.3948	4.3%	26	17	56
2007-11-28	2007	3	7.2	5.95	-	4.46%	12.35%	428738	1237108	38299	105433	26226	72555	0.1323	0.3659	957856	370312	6743	587544	106398	60407	89061	149237	45991	43070	106167	198275	198275	1407752	2007-09-30	8.93%	30.81%	1.7284	-	2.93	2.58	2.75	0.54	1.3098	0.8416	0.4819	0.6376	0.3866	4.1%	25	17	51
2007-08-30	2007	2	8.0	7.0	0.08	4.06%	7.97%	405613	808370	34178	67134	23601	46329	0.1190	0.2337	971399	390142	6470	581257	53196	37445	33211	149237	15751	17460	131777	198275	198275	1179736	2007-06-30	8.43%	30.14%	1.263	-	2.9	2.55	2.33	0.66	1.3111	0.8858	0.5587	0.6788	0.4016	6.0%	33	22	64
2007-05-22	2007	1	N/A	N/A	-	4.08%	4.08%	402757	402757	32956	32956	22728	22728	0.1146	0.1146	950233	392883	6193	557350	11432	14936	31541	149237	3504	35045	114192	198275	198275	1110340	2007-03-31	8.18%	30.04%	0.8643	-	2.78	2.44	2.3	0.58	1.2385	0.7758	0.4787	0.7128	0.4135	6.9%	54	30	94
2007-02-15	2006	4	N/A	N/A	0.14	5.59%	18.39%	418484	1523839	42383	142304	29853	98280	0.1506	0.4957	974078	439737	5865	534341	176412	61000	89347	123172	115412	26065	149237	198275	198275	1070685	2006-12-31	10.13%	28.91%	0.4296	10.8942	2.67	2.33	2.32	0.75	1.1529	0.7964	0.5349	0.8321	0.4514	10.2%	97	59	199

Financial Quarter Balance Sheet

year	qrt	Fixed deposits (A-0)	Goodwill on consolidation (A-0)	Intangible assets (A-0)	Investment properties (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Quoted investment (A-0)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Current tax assets (A-1)	Inventories (A-1)	Investments in unquoted shares (A-1)	Other investments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Employee benefits (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Employee benefits (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2011	2	-	50741	22859	910	-	1060984	23600	104028	-	-	217244	-	-	169002	54548	2877	117225	19137	515	36891	373158	16932
2011	1	-	50741	23215	910	-	1024914	23400	94080	-	-	220639	-	-	170207	53793	2906	116577	15260	515	29127	379226	16051
2010	4	-	50018	23578	910	-	999984	22400	131712	-	-	200797	-	-	153633	51795	2913	105845	12697	644	46702	357164	15025
2010	3	-	48739	24775	898	-	840907	23000	109280	-	-	180409	-	-	181105	32729	3093	101466	19836	604	54165	318353	15197
2010	2	-	48739	24611	898	-	814899	10524	88517	-	-	176798	-	-	160477	32695	3247	79832	19588	401	45508	293008	14065
2010	1	-	48739	24746	898	-	787977	-	72518	-	-	185450	-	-	177317	32714	3158	72922	16227	401	34437	298711	13306
2009	4	-	43399	25275	898	-	773241	-	123449	-	-	172339	-	-	151869	32940	3099	84387	12159	401	32049	321187	12491
2009	3	-	43399	26133	898	62399	660264	-	112095	-	4252	153781	-	-	146291	31763	3372	86352	-	293	51134	269252	12287
2009	2	-	43399	26910	898	62605	644390	-	78323	-	8011	154096	-	-	143190	31625	3309	98318	-	293	39568	245400	11591
2009	1	-	43399	27082	898	63652	629927	-	101352	-	5820	152008	-	-	135928	31594	3354	54071	-	293	91455	247476	10968
2008	4	-	43399	26436	898	63841	615059	-	97985	-	9139	158474	-	20203	118973	31602	3313	65944	-	623	75111	275424	10232
2008	3	-	43399	26427	-	63751	574426	-	104911	-	-	166830	4500	20000	115017	25149	3903	54466	154	-	78853	271921	10250
2008	2	-	43399	26926	-	64250	546125	-	125813	-	-	134318	4500	17000	89444	25135	3863	52079	472	-	67941	249233	9938
2008	1	6324	43399	26380	2000	64462	532509	4500	142125	-	-	124640	-	-	85153	25055	3854	103186	2595	-	21638	235507	9347
2007	4	6324	42762	25301	2000	63941	529658	4500	140358	-	-	112312	-	-	78972	25036	3758	110907	3296	-	12080	242110	6920
2007	3	12230	42762	26115	2000	63812	517891	4500	106167	-	3004	103146	-	-	76229	29702	3500	116809	-	201	11226	208874	6743
2007	2	12230	42762	25845	2000	64134	510678	4500	131777	-	2475	100308	-	-	74690	29659	3123	121490	-	166	42131	193573	6470
2007	1	15793	42762	24567	2000	62490	502664	4500	114192	3090	868	110367	-	-	66940	29684	3004	121628	-	240	47226	191101	6193
2006	4	15793	42762	24271	2000	62687	500393	4500	149237	5162	-	99475	-	-	67798	29722	2971	128028	2790	235	72367	203624	5865

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest
2011	2	690090	15900	1333	640	636434	707
2011	1	644219	15800	1196	639	591012	726
2010	4	683924	14531	1386	7839	626984	167
2010	3	631551	16900	1161	651	574805	1132
2010	2	606207	15600	984	618	553755	759
2010	1	600676	15100	836	728	550450	775
2009	4	624229	19218	976	743	569260	494
2009	3	585151	13900	1085	280	534903	541
2009	2	561412	12600	1472	817	515854	623
2009	1	526639	11500	1906	1492	485292	736
2008	4	601907	11307	1931	1068	561020	332
2008	3	552440	12300	1917	1131	507530	373
2008	2	529843	12200	1842	1368	486167	591
2008	1	495598	11300	1869	2290	455912	519
2007	4	493263	13081	1876	1116	447312	396
2007	3	428738	11800	2137	1968	390270	273
2007	2	405613	10300	2623	2417	371229	277
2007	1	402757	9900	4666	2952	368087	328
2006	4	418484	12255	4072	1743	373772	275

Financial Quarter Segments Revenue

year	qrt	Malaysia KFC Restaurants	Malaysia Integrated Poultry	Malaysia Ancillary	Foreign KFC Restaurants	Revaluation Surplus
2011	2	408100	141900	27700	112400	-
2011	1	387800	130900	23800	101700	-
2010	4	408000	137200	24900	113800	-
2010	3	373300	141500	22200	94500	-
2010	2	358400	129800	25300	92700	-
2010	1	357200	124900	28500	90100	-
2009	4	376700	125900	24900	96700	-
2009	3	347300	124300	21900	91700	-
2009	2	337700	115700	21100	86900	-
2009	1	303900	118300	21600	82800	-
2008	4	361500	120700	30200	89500	-
2008	3	314700	122000	25900	89800	-
2008	2	313000	104900	27000	84900	-
2008	1	295200	97400	22700	80300	-
2007	4	309100	88000	18700	77500	-
2007	3	254200	79600	20700	74200	-
2007	2	242600	74200	20300	68500	-
2007	1	237500	75200	18400	71700	-
2006	4	247800	79400	17300	74000	-

Financial Quarter Segments Profit

year	qrt	Malaysia KFC Restaurants	Malaysia Integrated Poultry	Malaysia Ancillary	Foreign KFC Restaurants	Revaluation Surplus
2011	2	51500	600	1800	3900	-
2011	1	50600	1500	200	800	-
2010	4	54100	700	-	1900	6700
2010	3	50500	1000	300	5000	-
2010	2	46500	500	2200	2900	-
2010	1	42600	1900	2900	2700	-
2009	4	49700	1100	200	6300	-
2009	3	43100	1900	300	4700	-
2009	2	42900	1000	1300	4300	-
2009	1	35200	1300	1700	2700	-
2008	4	44300	3400	3600	2700	-
2008	3	40000	2500	1300	2900	-
2008	2	33400	5500	100	4200	-
2008	1	31700	2400	2100	3900	-
2007	4	48800	2300	2900	1600	-
2007	3	31100	1700	2200	3300	-
2007	2	27400	4000	400	2300	-
2007	1	25300	3400	1200	3100	-
2006	4	34400	9900	5200	3300	-

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

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-Year Historical Daily Chart


5-Year Historical Weekly Chart