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Sunday, December 9, 2012

KLCI Stock - FAVCO / 7229 - 2012 Quarter 3

FAVELLE FAVCO BERHAD


Company Description
FAVELLE FAVCO BERHAD is a Malaysia-based investment holding company. Through its subsidiaries the Company is engaged in designing, manufacturing, supply, servicing, trading and renting of cranes, and sales of spare parts and services. Its brands include Favelle Favco and Kroll. The Company's product line consists of offshore, tower, wharf and crawler cranes. Kroll cranes are heavy lifting electric hammerhead cranes. The K-series crane sizes range from 70 meter tons to 25000 meter tons. Favelle Favco cranes are high-speed diesel hydraulic luffing cranes. The M-series crane sizes range from 60 meter tons to 2000 meter tons. The Company is a manufacturer of offshore cranes, delivering approximately 80 offshore cranes per year. Lifting capacities range from 5 tons to 300 tons. The Favelle Favco crawler crane range is jointly developed with Caterpillar Industrial Products Inc. The model lineup is divided into lattice boom and telescopic boom.

Company Info 
Listing Date2006-08-15
Market Capital (Capital Size)349,793,008 (Small)
Par ValueRM 0.50
BoardMain
SectorIndustrial Products
Major IndustryCranes
Sub IndustryMachinery & Equipment
Websitehttp://www.favellefavco.com/

My Analysis 
Forecast P/E now(1.65-0.12)/0.4118 = 3.72 (Moderate)
Target Price1.85+0.12 = 1.97 (PE 4.5, EPS 0.4118, DPS 0.12)
DecisionBUY if stock price strong rebound around SMA100 or SMA200
Comment
Revenue decreased 6.9% but higher than preceding year corresponding quarter 76.2%, eps decreased 6.1% but higher than preceding year corresponding quarter 16.7%, cash generated from operating enough to cover financing expenses but still spent 12.8% of Group cash to cover investing expenses, total current assets still increased which can indicate business still good prospect, gross margin lower than preceding year corresponding quarter 4% but still higher than average of 19%/qrt, liquidity ratio indicate group still tight enough to meet current obligation with condition maintain inventory liquid, gearing ratio indicate group can manage to utilize high financial leverage to generate more income, all accounting of turnover period still long time but is improving
First Support Price1.65
Second Support Price1.5
Risk RatingMODERATE

Research House
Jupiter Target Price1.82 (2012-08-07)

Accounting Ratio 
Return on Equity30.56%
Dividend Yield7.27%
Gross Profit Margin20.20%
Operating Profit Margin13.30%
Net Profit Margin13.13%
Tax Rate26.93%
Asset Turnover0.9232
Net Asset Value Per Share1.49
Net Tangible Asset per share1.46
Price/Net Tangible Asset Per Share1.12
Cash Per Share0.57
Liquidity Current Ratio1.3407
Liquidity Quick Ratio0.6772
Liquidity Cash Ratio0.2212
Gearing Debt to Equity Ratio1.7765
Gearing Debt to Asset Ratio0.6376
Working capital per thousand Ringgit sale23.0%
Days to sell the inventory204
Days to collect the receivables177
Days to pay the payables150

Technical Analysis 
SMA 101.639 (Downtrend)
SMA 201.654 (Downtrend 10 days)
SMA 501.674 (Downtrend)
SMA 1001.644 (Uptrend)
SMA 2001.511 (Uptrend)
MACD (26d/12d)-0.008608 ( 0.001198 )
Signal (9)-0.007692 ( 0.000229 )
MACD Histogram0.000916 (Bearish trend 9 days)
Bolinger Upper Band1.692
Bolinger Lower Band1.616

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue and pbt than FY11Q3 mainly due to increase in sales from crane segment which due to global recovery in investment in equipment and good execution of several high margin projects

- Higher pbt than FY12Q2 mainly contributed by improvement in margin from sales of cranes

- Estimate next 4Q eps after 2012 Q3 result announced = 0.3744*1.1 = 0.4118, estimate PE on current price 1.65 = 3.72(DPS 0.12)
- Estimate next 4Q eps after 2012 Q2 result announced = 0.3604*1.1 = 0.3964, estimate highest/lowest PE = 4.34/3.51 (DPS 0.12)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.2962*1.1 = 0.3258, estimate highest/lowest PE = 5.31/3.62 (DPS 0.12)
- Estimate next 4Q eps after 2011 Q4 result announced = 241502*0.21/182623 = 0.2777, estimate highest/lowest PE = 5.29/4.29 (DPS 0.12)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.2047*0.8 = 0.1638, estimate highest/lowest PE = 8.12/6.84 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0955*1.2 = 0.1146, estimate highest/lowest PE = 11.08/6.94 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0217*4*1.1 = 0.0955(lower down estimate due to previous high profit was from other income), estimate highest/lowest PE = 18.43/10.99 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.1362, estimate highest/lowest PE = 10.5/7.05 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1602*0.85 = 0.1362(450 million equal to 15% decrease from 2009 Q4 cum_eps), estimate highest/lowest PE = 8.37/5.58 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1442*0.7 = 0.1009 (30% drop from 0.1442, revenue drop and margin expect will not increase much), estimate highest/lowest PE = 8.42/7.04 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1442(10% drop from 0.1602, revenue drop and margin expect will not increase much), estimate highest/lowest PE = 6.93/4.92 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1442, estimate highest/lowest PE = 5.76/4.99 (DPS 0.025)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1442, estimate highest/lowest PE = 6.45/5.49 (DPS 0.025)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1442, estimate highest/lowest PE = 8.11/5.72 (DPS 0.025)

FAVCO latest news (English)

FAVCO latest news (Chinese)


Financial Quarter Summary
a_dateyearqrth_pricel_pricedivroec_roerevc_revpbtc_pbtprofc_profepsc_epsassetc_assetliabc_liabminoequicfocficffcashfcfnetfinalsharec_sharem_capdategros_moper_mprof_mvatasset_tpenavpsntapsp/ntapscpsl_curl_quil_cashg_deg_daavg_winv_drec_dpay_d
2012-11-2620123N/AN/A-7.73%20.22%190917525100250725573918597486280.10080.263776559564073948814747791126672774481354617454108191151653908147271004381844381844383024782012-09-3020.20%13.30%13.13%26.93%0.9232-1.491.461.120.571.34070.67720.22121.77650.637623.0%204177150
2012-08-27201221.841.51-8.21%12.48%205082334183196703066719749300310.10740.1633750149624379480473469767306126967612456142933948115183183757851093981838491838493217352012-06-3015.03%9.73%9.59%2.25%0.8321-1.451.421.230.641.32910.69080.24951.80210.640524.8%221194172
2012-05-28201211.851.3-4.27%4.27%129101129101109971099710282102820.05610.0561758092642128507572496783346725052030067530242211588629537271151430011833141833142658052012-03-3117.76%8.98%8.52%6.67%0.6978-1.351.321.10.781.29260.60820.28792.05450.669527.5%299203200
2012-02-22201141.591.310.1210.34%24.34%181696485097233015219320219476040.11070.261868056356100344002542861435562405386701821199110798015645819347401148961826231818442282782011-12-3126.58%15.65%12.82%13.29%0.71284.77491.31.270.980.631.30890.59990.26811.85680.646627.3%293195212
2011-11-22201131.381.17-7.91%14.00%108340303401155762889215476273850.08640.1537673702549654456593444864-21710939901247142250889731151877321824101791571781162131962011-09-3024.25%14.21%14.38%0.64%0.5993-1.221.171.020.461.23560.59410.18522.10310.677726.0%320273246
2011-08-23201121.320.845-4.11%6.09%1098801950619133133168042119090.04520.0671665045541272453550441904-211495392811546232498098323819205701015531778891775862063512011-06-3015.11%8.15%8.31%11.95%0.6197-1.191.151.010.571.22490.61330.22982.14450.68224.1%289255222
2011-05-23201111.811.1-1.98%1.98%851818518141834183386738670.02170.0217620861503174419983407816-20087832221634823237948325873235501030331781431781432529632011-03-3117.33%5.17%4.91%7.55%0.6369-1.131.081.310.581.23380.66590.25262.09070.676524.1%262237187
2011-02-23201041.471.00.055.32%15.07%100365385186119533442410105286080.05680.1627592248476439396640383770-195608750913637217421225792114642888796911779531758291939682010-12-3120.27%12.29%11.91%15.46%0.65046.69931.111.061.030.471.24150.67510.222.02770.669724.1%256230225
2010-11-23201031.280.965-4.79%9.74%11668428482112235224719102185030.05100.1059597412481107412989400341-1844231494511922242391212493023212161000331783101747961738522010-09-3016.12%10.98%10.49%25.61%0.7712-1.061.00.970.561.20170.58430.24992.23940.691317.5%240197154
2010-08-24201021.180.8-3.16%4.95%93187168137645310236599994010.03450.0542599537496113420650407486-178887569377015924118014320119125988891738901734741443282010-06-3019.90%7.55%6.92%7.04%0.8258-1.030.980.850.571.21750.5980.24272.35150.701617.9%226191123
2010-05-25201010.890.75-1.79%1.79%749507495037833783340234020.01950.0195621959515778445942431840-1760177414186516833122584927926112964721744721744721343432010-03-3123.24%5.82%5.05%10.07%0.7983-1.010.950.810.551.19440.64520.22342.53350.71716.9%214206134
2010-02-25200941.040.750.046.95%17.24%175899535835120853523511198277830.06400.1602685922573248496043480774-189879933592648524235710666874692971264031749141734381346832009-12-3116.97%7.45%6.87%7.34%0.78124.80681.091.030.750.721.19230.66290.26312.61240.723217.3%210200167
2009-11-26200930.850.74-4.45%10.29%1510613599369524231507168165850.04110.0954655981561021472894458796-1830874815953984441573844276138320957041743981739311395182009-09-3013.84%6.91%6.30%24.74%0.834-1.050.980.820.571.22280.6020.21832.58290.720918.7%232199139
2009-08-21200920.950.8-2.79%5.84%94609208875804013626450194170.02580.0540642112549153464864450140-177248281221314538550792680826270813491744361744271578642009-06-3024.26%9.43%8.50%44.02%0.8267-1.020.940.960.51.220.56460.19512.62270.72418.7%248205136
2009-05-26200911.190.845-3.05%3.05%11426611426655865586491649160.02840.0284612852519550445281429919-167571156665621079502181622817307329111731111731111462782009-03-3116.67%6.39%4.89%11.99%0.925-0.970.890.950.231.20850.53670.0922.65730.726615.8%219217122
2009-02-26200841.00.5750.0258.70%16.67%187164581125156062738211392218240.06580.1264610279515078449152433284-1611272348459662133152704175183813488911730341726471263142008-12-3118.87%8.83%8.34%27.00%0.95225.77490.930.850.860.311.18880.54750.12272.78760.73614.1%203205123
2008-11-25200830.750.52-1.77%7.97%1347793939613033117762311104320.01330.0600633655563249494868479558-1387872978767101752756904230775550624541740881738121305662008-09-3014.05%3.30%2.25%23.80%0.8314-0.80.780.960.361.17450.51270.13153.56570.78115.9%257223161
2008-08-26200821.120.49-2.84%6.20%13069625918240338743372481210.02130.0464575443502592433763417518-141680582228571316657986296510201477851749381749341854342008-06-309.43%4.06%3.09%7.66%0.8968-0.810.791.340.271.20380.51150.11453.06160.753816.5%238208159
2008-05-27200811.50.98-3.36%3.36%12848612848647104710439743970.02500.0250561734489639425925409098-13580941386261402956310476418793375171755901755902651402008-03-3112.57%4.59%3.67%6.65%0.9083-0.770.752.010.251.19690.46460.1063.13620.758215.8%250211156
2008-02-26200741.711.380.03255.49%16.45%1328554538967044215626321189350.03620.1075529907457107398986381516-13092180419101672243291757025247820569951748291761172972092007-12-3121.97%6.33%5.30%10.26%0.856615.81190.740.722.360.421.19810.50370.19273.04750.752916.7%252206157
2007-11-27200731.81.59-4.19%10.96%1240313210415078145184829126140.02760.0719530330461049403309380937-12702148927355719108129924537026262392541749641754383061872007-09-3011.55%5.38%4.09%4.90%0.8345-0.720.72.50.321.21030.45240.14813.17510.760518.1%275217168
2007-08-23200721.921.74-3.72%6.76%12487119701055289440428377850.02430.0441474747404455351358326497-1233893179329806035136942881322778364721764371764373175862007-06-3010.35%5.87%4.43%22.52%0.671-0.70.672.690.271.23880.5140.14592.84760.740124.5%315276181
2007-05-2420071N/AN/A-3.04%3.04%721397213939123912350235020.02010.0201437974366677319744292381-1182303202719784324131503004925725388751738231738232085872007-03-3119.40%8.02%5.42%10.48%0.4422-0.680.651.850.291.25410.49040.1732.70440.730138.4%503399289
2007-02-2820064N/AN/A0.0175N/AN/A121525357956280310946234898680.01370.0711434269362691319146289544-1151231017687437788433414339221135551713871387901371092006-12-3114.59%4.25%2.31%16.23%0.279811.25170.830.781.030.161.25260.46910.0942.77220.734960.2%798730441

Financial Quarter Balance Sheet
yearqrtDeferred tax assets (A-0)Intangible assets (A-0)Investment in associated companies (A-0)Property, plant and equipment (A-0)Cash and cash equivalents (A-1)Current tax assets (A-1)Derivative assets (A-1)Inventories (A-1)Other receivables, deposits and prepayments (A-1)Work in progress (A-1)Deferred tax liabilities (L-0)Loans & borrowings (L-0)Amount due to customers (L-1)Current tax liabilities (L-1)Derivative liabilities (L-1)Loans & borrowings (L-1)Payables and accruals (L-1)Provisions (L-1)Minority interest (M-1)
20123236854787699109311105700672707189992215157127116596742691645117248-6373323264997702667
20122236853117776110315117200710-17452020661712533258624844155395197540726712423326479373061
20121236857855467102344143001672872201418156208138562536854211979482011-6230522783466853467
201142368634757321051131148963072987183823138938120052541259991548422151-4524721983865363556
201132627785559151076518241062-1646541818111207175197653216935337211634447152197965645-
2011226278140606210694410155311044863145395163495124862453771091755373842-487252078425958-
201112627808566631003121030341068818113449015930297099448976781701203517-626031658905686-
2010426278652631698214844301077962013902516394378344442084501405473366-435531907835521-
201031560900064219932410003362-132509133833114670360090481707397230-541881591739011-
2010215609506929226698889210-137386144587115041356595991861978312-667671376878523-
20101156010235799430796472301-138751181849984053761103411747729491-905491490877941-
200941560111858499845126509574-15322819161610132140801118912520210661-1337692026888454-
20093-1288011281968100166334-1619751756731228732216118821464778471-11987417135412620-
20092-136131137923387837194-1623981661121326122219125051392898220-12968516159411352-
20091-14062837915739569306-1431051908701457002247131151310154855-1249011607938355-
20084-14142368102353163232-1360291838351418192188136801129304224-1415911672837256-
20083-277935675926307260-1776571827581397022248130621458101820-1259491991956784-
20082-333016695054778760-1612101656931278422202140431037821836-1115581939986344-
20081-351021685644335058-150655146651148925216214665986611780-1166441866325381-
20074-398022687987353158-126903118591138024218515285772891685-1327671644795296-
20073-47296464488564251405-140505114493148221226020112789531184-1185381767575505-
20072-54067364813476231256-11490911893912172823112255066246857-1185511357305113-
20071-59639265242505821554-102849912491204432286250774381821-1156391283994504-
20064-666511664797272081904-9054310671013632623242727833866117-1256511253124598-

Financial Quarter Income Statement
yearqrtRevenueIncome tax expenseCost of salesFinance/interest costsOther incomeAdministrative/Operating expensesMinority interestFinance/interest incomeShare of profit/ (loss) of associatesSelling and distribution costsOther expenses
20123190917675115234664689210305276412771991-
201222050824431742657103661125785225641391945-
201211291017331061726067029955182782652086-
20114181696309613340755332542199841455015834591054
201131083401008206969216228666-10211473482351
20112109880109193282366355110088-63494750352
20111851813167042158216489779-6192581874351
2010410036518488001923954089212-251224203-
2010311668431339788055942288439-1731871785-
2010293187454746446823139571-88131625-
20101749503815752871714439658-14451960-
200941758998871460551214135412333-227283057-
200931510612356130155101933829294-10414554-
2009294609353971659998127911276-83301470-
200911142666709521617971659957-33471955-
2008418716442141518521532328011309-60614192-
20083134779722115849-25639913-1438202003-
20082130696309118376149439839313-22361680-
20081128486313112335144916099939-26411925-
200741328557231036721730655210906-402433310-
20073124031249109709-35259535-158991636-
200721248711245111950209845638597-314181557-
20071721394105814521219407931-270251215-
20064121525455103791212585110042-631761674-

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


CHANGES IN SHAREHOLDING
ANNUAL REPORTS


HISTORICAL


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