Company Info
| Market Capital (Capital Size) | 57,000,000 (Very Small) |
| Par Value | RM 0.20 |
My Analysis
| Forecast P/E now | (0.285-0.0225)/0.0514 = 5.11 (Moderate) |
| Target Price | 0.31+0.0225 = 0.33 (PE 6.0, EPS 0.0514, DPS 0.0225) |
| Decision | BUY when MACD moving back to uptrend and got very stronger buying volume than selling |
| Comment | Revenue increased 4.2% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 9.8%, eps decreased 18.9% and also lower than preceding year corresponding quarter 7.6%, cash generated from operating more than enough to cover all expenses, stronger liquidity ratio from high to strong level now, lower gearing ratio at below moderate level now, all accounting ratio are good, inventory level still higher than previous year, affecting by increase in raw material cost and weakening of USD against RM but probably can offset by foreign currency hedge |
| First Support Price | 0.27 |
| Second Support Price | 0.22 |
| Risk Rating | MODERATE |
Accounting Ratio
| Return on Equity | 16.48% |
| Dividend Yield | 7.89% |
| Profit Margin | 13.95% |
| Tax Rate | 5.87% |
| Asset Turnover | 1.1091 |
| Net Asset Value Per Share | 0.33 |
| Net Tangible Asset per share | 0.33 |
| Price/Net Tangible Asset Per Share | 0.91 |
| Cash Per Share | 0.07 |
| Liquidity Current Ratio | 4.9843 |
| Liquidity Quick Ratio | 2.4184 |
| Liquidity Cash Ratio | 1.483 |
| Gearing Debt to Equity Ratio | 0.2216 |
| Gearing Debt to Asset Ratio | 0.1761 |
| Working capital per thousand Ringgit sale | 40.3% |
| Days to sell the inventory | 108 |
| Days to collect the receivables | 34 |
| Days to pay the payables | 40 |
Technical Analysis
| SMA 20 | 0.295 (Uptrend 25 days) |
| SMA 50 | 0.281 (Same) |
| SMA 100 | 0.265 (Uptrend) |
| SMA 200 | 0.261 (Downtrend) |
| MACD (26d/12d) | 0.002161 ( 0.000782 ) |
| Signal (9) | 0.004283 ( 0.00053 ) |
| MACD Histogram | 0.002122 (Bearish trend 9 days) |
My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue was attributed to better selling price of certain product
- Lower pbt was primarily attributed to the recognition of net fair value loss on foreign exchange derivatives and higher cost of raw materials
- Estimate next 4Q eps after 2012 Q1 result announced = 68514*0.15/200000 = 0.0514, estimate PE on current price 0.285 = 5.11(DPS 0.0225)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0196*4 = 0.0784, estimate highest/lowest PE = 3.83/2.93 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0088*4*1.05 = 0.037, estimate highest/lowest PE = 7.57/4.86 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q2 result announced = (0.0172+0.0085)*2 = 0.0514, estimate highest/lowest PE = 7.2/4.67 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0172*4*1.05 = 0.0722(revenue incrreased, improved balance sheet), estimate highest/lowest PE = 6.09/4.57 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0207*4 = 0.0828, estimate highest/lowest PE = 7/4.29 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0242*4*0.95 = 0.092, estimate highest/lowest PE = 6.47/4.35 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0268*4*0.95 = 0.1018, estimate highest/lowest PE = 6.04/4.91 (DPS 0.04)
- In FY2010, revenue recorded RM110 million and profit RM21.7 million
- In FY2009, revenue recorded RM108.4 million and profit RM22.7 million
- In FY2008, revenue recorded RM92.6 million and profit RM12.4 million
- In FY2007, revenue recorded RM73.8 million and profit RM10.5 million
- Revenue regions percentage: Europe-60%, Australasia-26%, North & South America-8%, Others-6%
- Revenue products percentage: Upholstered Sofas-55%, Upholstered Dining Chairs-30%, Upholstered Bed Frames-13%, Others-2%
- Dividend policy envisage not less than 40% of net profit, intends to recommend and distribute at least 50% of net profits
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