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 Date	2006-08-15
Market Capital (Capital Size)	349,793,008 (Small)
Par Value	RM 0.50
Board	Main
Sector	Industrial Products
Major Industry	Cranes
Sub Industry	Machinery & Equipment
Website	http://www.favellefavco.com/

My Analysis 

Forecast P/E now	(1.65-0.12)/0.4118 = 3.72 (Moderate)
Target Price	1.85+0.12 = 1.97 (PE 4.5, EPS 0.4118, DPS 0.12)
Decision	BUY 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 Price	1.65
Second Support Price	1.5
Risk Rating	MODERATE

Research House

Jupiter Target Price

1.82 (2012-08-07)

Accounting Ratio 

Return on Equity	30.56%
Dividend Yield	7.27%
Gross Profit Margin	20.20%
Operating Profit Margin	13.30%
Net Profit Margin	13.13%
Tax Rate	26.93%
Asset Turnover	0.9232
Net Asset Value Per Share	1.49
Net Tangible Asset per share	1.46
Price/Net Tangible Asset Per Share	1.12
Cash Per Share	0.57
Liquidity Current Ratio	1.3407
Liquidity Quick Ratio	0.6772
Liquidity Cash Ratio	0.2212
Gearing Debt to Equity Ratio	1.7765
Gearing Debt to Asset Ratio	0.6376
Working capital per thousand Ringgit sale	23.0%
Days to sell the inventory	204
Days to collect the receivables	177
Days to pay the payables	150

Technical Analysis 

SMA 10	1.639 (Downtrend)
SMA 20	1.654 (Downtrend 10 days)
SMA 50	1.674 (Downtrend)
SMA 100	1.644 (Uptrend)
SMA 200	1.511 (Uptrend)
MACD (26d/12d)	-0.008608 ( 0.001198 )
Signal (9)	-0.007692 ( 0.000229 )
MACD Histogram	0.000916 (Bearish trend 9 days)
Bolinger Upper Band	1.692
Bolinger Lower Band	1.616

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_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
2012-11-26	2012	3	N/A	N/A	-	7.73%	20.22%	190917	525100	25072	55739	18597	48628	0.1008	0.2637	765595	640739	488147	477911	2667	277448	13546	17454	10819	115165	3908	14727	100438	184438	184438	302478	2012-09-30	20.20%	13.30%	13.13%	26.93%	0.9232	-	1.49	1.46	1.12	0.57	1.3407	0.6772	0.2212	1.7765	0.6376	23.0%	204	177	150
2012-08-27	2012	2	1.84	1.51	-	8.21%	12.48%	205082	334183	19670	30667	19749	30031	0.1074	0.1633	750149	624379	480473	469767	3061	269676	12456	14293	3948	115183	1837	5785	109398	183849	183849	321735	2012-06-30	15.03%	9.73%	9.59%	2.25%	0.8321	-	1.45	1.42	1.23	0.64	1.3291	0.6908	0.2495	1.8021	0.6405	24.8%	221	194	172
2012-05-28	2012	1	1.85	1.3	-	4.27%	4.27%	129101	129101	10997	10997	10282	10282	0.0561	0.0561	758092	642128	507572	496783	3467	250520	30067	530	2422	115886	29537	27115	143001	183314	183314	265805	2012-03-31	17.76%	8.98%	8.52%	6.67%	0.6978	-	1.35	1.32	1.1	0.78	1.2926	0.6082	0.2879	2.0545	0.6695	27.5%	299	203	200
2012-02-22	2011	4	1.59	1.31	0.12	10.34%	24.34%	181696	485097	23301	52193	20219	47604	0.1107	0.2618	680563	561003	440025	428614	3556	240538	67018	21199	11079	80156	45819	34740	114896	182623	181844	228278	2011-12-31	26.58%	15.65%	12.82%	13.29%	0.7128	4.7749	1.3	1.27	0.98	0.63	1.3089	0.5999	0.2681	1.8568	0.6466	27.3%	293	195	212
2011-11-22	2011	3	1.38	1.17	-	7.91%	14.00%	108340	303401	15576	28892	15476	27385	0.0864	0.1537	673702	549654	456593	444864	-	217109	39901	24714	22508	89731	15187	7321	82410	179157	178116	213196	2011-09-30	24.25%	14.21%	14.38%	0.64%	0.5993	-	1.22	1.17	1.02	0.46	1.2356	0.5941	0.1852	2.1031	0.6777	26.0%	320	273	246
2011-08-23	2011	2	1.32	0.845	-	4.11%	6.09%	109880	195061	9133	13316	8042	11909	0.0452	0.0671	665045	541272	453550	441904	-	211495	39281	15462	3249	80983	23819	20570	101553	177889	177586	206351	2011-06-30	15.11%	8.15%	8.31%	11.95%	0.6197	-	1.19	1.15	1.01	0.57	1.2249	0.6133	0.2298	2.1445	0.682	24.1%	289	255	222
2011-05-23	2011	1	1.81	1.1	-	1.98%	1.98%	85181	85181	4183	4183	3867	3867	0.0217	0.0217	620861	503174	419983	407816	-	200878	32221	6348	2323	79483	25873	23550	103033	178143	178143	252963	2011-03-31	17.33%	5.17%	4.91%	7.55%	0.6369	-	1.13	1.08	1.31	0.58	1.2338	0.6659	0.2526	2.0907	0.6765	24.1%	262	237	187
2011-02-23	2010	4	1.47	1.0	0.05	5.32%	15.07%	100365	385186	11953	34424	10105	28608	0.0568	0.1627	592248	476439	396640	383770	-	195608	7509	13637	21742	122579	21146	42888	79691	177953	175829	193968	2010-12-31	20.27%	12.29%	11.91%	15.46%	0.6504	6.6993	1.11	1.06	1.03	0.47	1.2415	0.6751	0.22	2.0277	0.6697	24.1%	256	230	225
2010-11-23	2010	3	1.28	0.965	-	4.79%	9.74%	116684	284821	12235	22471	9102	18503	0.0510	0.1059	597412	481107	412989	400341	-	184423	14945	11922	24239	121249	3023	21216	100033	178310	174796	173852	2010-09-30	16.12%	10.98%	10.49%	25.61%	0.7712	-	1.06	1.0	0.97	0.56	1.2017	0.5843	0.2499	2.2394	0.6913	17.5%	240	197	154
2010-08-24	2010	2	1.18	0.8	-	3.16%	4.95%	93187	168137	6453	10236	5999	9401	0.0345	0.0542	599537	496113	420650	407486	-	178887	569	3770	15924	118014	3201	19125	98889	173890	173474	144328	2010-06-30	19.90%	7.55%	6.92%	7.04%	0.8258	-	1.03	0.98	0.85	0.57	1.2175	0.598	0.2427	2.3515	0.7016	17.9%	226	191	123
2010-05-25	2010	1	0.89	0.75	-	1.79%	1.79%	74950	74950	3783	3783	3402	3402	0.0195	0.0195	621959	515778	445942	431840	-	176017	7414	1865	16833	122584	9279	26112	96472	174472	174472	134343	2010-03-31	23.24%	5.82%	5.05%	10.07%	0.7983	-	1.01	0.95	0.81	0.55	1.1944	0.6452	0.2234	2.5335	0.717	16.9%	214	206	134
2010-02-25	2009	4	1.04	0.75	0.04	6.95%	17.24%	175899	535835	12085	35235	11198	27783	0.0640	0.1602	685922	573248	496043	480774	-	189879	93359	26485	2423	57106	66874	69297	126403	174914	173438	134683	2009-12-31	16.97%	7.45%	6.87%	7.34%	0.7812	4.8068	1.09	1.03	0.75	0.72	1.1923	0.6629	0.2631	2.6124	0.7232	17.3%	210	200	167
2009-11-26	2009	3	0.85	0.74	-	4.45%	10.29%	151061	359936	9524	23150	7168	16585	0.0411	0.0954	655981	561021	472894	458796	-	183087	48159	5398	4441	57384	42761	38320	95704	174398	173931	139518	2009-09-30	13.84%	6.91%	6.30%	24.74%	0.834	-	1.05	0.98	0.82	0.57	1.2228	0.602	0.2183	2.5829	0.7209	18.7%	232	199	139
2009-08-21	2009	2	0.95	0.8	-	2.79%	5.84%	94609	208875	8040	13626	4501	9417	0.0258	0.0540	642112	549153	464864	450140	-	177248	28122	1314	538	55079	26808	26270	81349	174436	174427	157864	2009-06-30	24.26%	9.43%	8.50%	44.02%	0.8267	-	1.02	0.94	0.96	0.5	1.22	0.5646	0.1951	2.6227	0.724	18.7%	248	205	136
2009-05-26	2009	1	1.19	0.845	-	3.05%	3.05%	114266	114266	5586	5586	4916	4916	0.0284	0.0284	612852	519550	445281	429919	-	167571	15666	562	1079	50218	16228	17307	32911	173111	173111	146278	2009-03-31	16.67%	6.39%	4.89%	11.99%	0.925	-	0.97	0.89	0.95	0.23	1.2085	0.5367	0.092	2.6573	0.7266	15.8%	219	217	122
2009-02-26	2008	4	1.0	0.575	0.025	8.70%	16.67%	187164	581125	15606	27382	11392	21824	0.0658	0.1264	610279	515078	449152	433284	-	161127	23484	5966	21331	52704	17518	3813	48891	173034	172647	126314	2008-12-31	18.87%	8.83%	8.34%	27.00%	0.9522	5.7749	0.93	0.85	0.86	0.31	1.1888	0.5475	0.1227	2.7876	0.736	14.1%	203	205	123
2008-11-25	2008	3	0.75	0.52	-	1.77%	7.97%	134779	393961	3033	11776	2311	10432	0.0133	0.0600	633655	563249	494868	479558	-	138787	29787	6710	17527	56904	23077	5550	62454	174088	173812	130566	2008-09-30	14.05%	3.30%	2.25%	23.80%	0.8314	-	0.8	0.78	0.96	0.36	1.1745	0.5127	0.1315	3.5657	0.781	15.9%	257	223	161
2008-08-26	2008	2	1.12	0.49	-	2.84%	6.20%	130696	259182	4033	8743	3724	8121	0.0213	0.0464	575443	502592	433763	417518	-	141680	5822	2857	13166	57986	2965	10201	47785	174938	174934	185434	2008-06-30	9.43%	4.06%	3.09%	7.66%	0.8968	-	0.81	0.79	1.34	0.27	1.2038	0.5115	0.1145	3.0616	0.7538	16.5%	238	208	159
2008-05-27	2008	1	1.5	0.98	-	3.36%	3.36%	128486	128486	4710	4710	4397	4397	0.0250	0.0250	561734	489639	425925	409098	-	135809	4138	626	14029	56310	4764	18793	37517	175590	175590	265140	2008-03-31	12.57%	4.59%	3.67%	6.65%	0.9083	-	0.77	0.75	2.01	0.25	1.1969	0.4646	0.106	3.1362	0.7582	15.8%	250	211	156
2008-02-26	2007	4	1.71	1.38	0.0325	5.49%	16.45%	132855	453896	7044	21562	6321	18935	0.0362	0.1075	529907	457107	398986	381516	-	130921	80419	10167	22432	9175	70252	47820	56995	174829	176117	297209	2007-12-31	21.97%	6.33%	5.30%	10.26%	0.8566	15.8119	0.74	0.72	2.36	0.42	1.1981	0.5037	0.1927	3.0475	0.7529	16.7%	252	206	157
2007-11-27	2007	3	1.8	1.59	-	4.19%	10.96%	124031	321041	5078	14518	4829	12614	0.0276	0.0719	530330	461049	403309	380937	-	127021	48927	3557	19108	12992	45370	26262	39254	174964	175438	306187	2007-09-30	11.55%	5.38%	4.09%	4.90%	0.8345	-	0.72	0.7	2.5	0.32	1.2103	0.4524	0.1481	3.1751	0.7605	18.1%	275	217	168
2007-08-23	2007	2	1.92	1.74	-	3.72%	6.76%	124871	197010	5528	9440	4283	7785	0.0243	0.0441	474747	404455	351358	326497	-	123389	31793	2980	6035	13694	28813	22778	36472	176437	176437	317586	2007-06-30	10.35%	5.87%	4.43%	22.52%	0.671	-	0.7	0.67	2.69	0.27	1.2388	0.514	0.1459	2.8476	0.7401	24.5%	315	276	181
2007-05-24	2007	1	N/A	N/A	-	3.04%	3.04%	72139	72139	3912	3912	3502	3502	0.0201	0.0201	437974	366677	319744	292381	-	118230	32027	1978	4324	13150	30049	25725	38875	173823	173823	208587	2007-03-31	19.40%	8.02%	5.42%	10.48%	0.4422	-	0.68	0.65	1.85	0.29	1.2541	0.4904	0.173	2.7044	0.7301	38.4%	503	399	289
2007-02-28	2006	4	N/A	N/A	0.0175	N/A	N/A	121525	357956	2803	10946	2348	9868	0.0137	0.0711	434269	362691	319146	289544	-	115123	10176	8743	7788	4334	1433	9221	13555	171387	138790	137109	2006-12-31	14.59%	4.25%	2.31%	16.23%	0.2798	11.2517	0.83	0.78	1.03	0.16	1.2526	0.4691	0.094	2.7722	0.7349	60.2%	798	730	441

Financial Quarter Balance Sheet

year	qrt	Deferred 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)
2012	3	2368	5478	7699	109311	105700	67	2707	189992	215157	127116	5967	4269	164511	7248	-	63733	232649	9770	2667
2012	2	2368	5311	7776	110315	117200	710	-	174520	206617	125332	5862	4844	155395	1975	4072	67124	233264	7937	3061
2012	1	2368	5785	5467	102344	143001	67	2872	201418	156208	138562	5368	5421	197948	2011	-	62305	227834	6685	3467
2011	4	2368	6347	5732	105113	114896	307	2987	183823	138938	120052	5412	5999	154842	2151	-	45247	219838	6536	3556
2011	3	2627	7855	5915	107651	82410	62	-	164654	181811	120717	5197	6532	169353	3721	1634	44715	219796	5645	-
2011	2	2627	8140	6062	106944	101553	1104	4863	145395	163495	124862	4537	7109	175537	3842	-	48725	207842	5958	-
2011	1	2627	8085	6663	100312	103034	1068	8181	134490	159302	97099	4489	7678	170120	3517	-	62603	165890	5686	-
2010	4	2627	8652	6316	98214	84430	1077	9620	139025	163943	78344	4420	8450	140547	3366	-	43553	190783	5521	-
2010	3	1560	9000	6421	99324	100033	62	-	132509	133833	114670	3600	9048	170739	7230	-	54188	159173	9011	-
2010	2	1560	9506	92	92266	98889	210	-	137386	144587	115041	3565	9599	186197	8312	-	66767	137687	8523	-
2010	1	1560	10235	79	94307	96472	301	-	138751	181849	98405	3761	10341	174772	9491	-	90549	149087	7941	-
2009	4	1560	11185	84	99845	126509	574	-	153228	191616	101321	4080	11189	125202	10661	-	133769	202688	8454	-
2009	3	-	12880	112	81968	100166	334	-	161975	175673	122873	2216	11882	146477	8471	-	119874	171354	12620	-
2009	2	-	13613	113	79233	87837	194	-	162398	166112	132612	2219	12505	139289	8220	-	129685	161594	11352	-
2009	1	-	14062	83	79157	39569	306	-	143105	190870	145700	2247	13115	131015	4855	-	124901	160793	8355	-
2008	4	-	14142	36	81023	53163	232	-	136029	183835	141819	2188	13680	112930	4224	-	141591	167283	7256	-
2008	3	-	2779	35	67592	63072	60	-	177657	182758	139702	2248	13062	145810	1820	-	125949	199195	6784	-
2008	2	-	3330	16	69505	47787	60	-	161210	165693	127842	2202	14043	103782	1836	-	111558	193998	6344	-
2008	1	-	3510	21	68564	43350	58	-	150655	146651	148925	2162	14665	98661	1780	-	116644	186632	5381	-
2007	4	-	3980	22	68798	73531	58	-	126903	118591	138024	2185	15285	77289	1685	-	132767	164479	5296	-
2007	3	-	4729	64	64488	56425	1405	-	140505	114493	148221	2260	20112	78953	1184	-	118538	176757	5505	-
2007	2	-	5406	73	64813	47623	1256	-	114909	118939	121728	2311	22550	66246	857	-	118551	135730	5113	-
2007	1	-	5963	92	65242	50582	1554	-	102849	91249	120443	2286	25077	43818	21	-	115639	128399	4504	-
2006	4	-	6665	116	64797	27208	1904	-	90543	106710	136326	2324	27278	33866	117	-	125651	125312	4598	-

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income	Share of profit/ (loss) of associates	Selling and distribution costs	Other expenses
2012	3	190917	6751	152346	646	892	10305	276	412	77	1991	-
2012	2	205082	443	174265	710	3661	12578	522	564	139	1945	-
2012	1	129101	733	106172	606	702	9955	18	278	265	2086	-
2011	4	181696	3096	133407	5533	2542	19984	14	550	158	3459	1054
2011	3	108340	100	82069	692	1622	8666	-	1021	147	3482	351
2011	2	109880	1091	93282	366	3551	10088	-	634	94	750	352
2011	1	85181	316	70421	582	1648	9779	-	619	258	1874	351
2010	4	100365	1848	80019	239	5408	9212	-	25	122	4203	-
2010	3	116684	3133	97880	559	4228	8439	-	173	187	1785	-
2010	2	93187	454	74644	682	313	9571	-	88	13	1625	-
2010	1	74950	381	57528	717	1443	9658	-	144	5	1960	-
2009	4	175899	887	146055	1214	1354	12333	-	227	28	3057	-
2009	3	151061	2356	130155	1019	3382	9294	-	104	1	4554	-
2009	2	94609	3539	71659	998	1279	11276	-	83	30	1470	-
2009	1	114266	670	95216	1797	165	9957	-	33	47	1955	-
2008	4	187164	4214	151852	1532	3280	11309	-	606	1	4192	-
2008	3	134779	722	115849	-	2563	9913	-	1438	20	2003	-
2008	2	130696	309	118376	1494	3983	9313	-	223	6	1680	-
2008	1	128486	313	112335	1449	1609	9939	-	264	1	1925	-
2007	4	132855	723	103672	1730	6552	10906	-	402	43	3310	-
2007	3	124031	249	109709	-	3525	9535	-	1589	9	1636	-
2007	2	124871	1245	111950	2098	4563	8597	-	314	18	1557	-
2007	1	72139	410	58145	2121	940	7931	-	270	25	1215	-
2006	4	121525	455	103791	2125	851	10042	-	63	176	1674	-

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

KLCI Stock - FAVCO / 7229 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	256,208,838 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.43-0.06)/0.2777 = 4.93 (Moderate)
Target Price	2.22+0.06 = 2.28 (PE 8.0, EPS 0.2777, DPS 0.06)
Decision	BUY if MACD back to uptrend and got strong buying volume than selling
Comment	Revenue increased 67.7% and also higher than preceding year corresponding quarter 81%, eps increased 28.1% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 94.9%, cash generated from operating is more than enough to cover all expenses, better gross and operating profit margin, slightly better liquidity ratio at low level now, slightly lower gearing ratio but still at very high level now, all accounting ratio also high, lower debt ratio at historical low, higher inventory can indicate better demand of Group products
First Support Price	1.35
Second Support Price	1.25
Risk Rating	MODERATE

Research House

CIMB Target Price

1.23 (2011-11-24)

Accounting Ratio

Return on Equity	19.71%
Dividend Yield	4.20%
Gross Profit Margin	26.58%
Operating Profit Margin	15.44%
Net Profit Margin	12.82%
Tax Rate	13.29%
Asset Turnover	0.712
Net Asset Value Per Share	1.31
Net Tangible Asset per share	1.27
Price/Net Tangible Asset Per Share	0.98
Cash Per Share	0.63
Liquidity Current Ratio	1.3117
Liquidity Quick Ratio	0.6004
Liquidity Cash Ratio	0.2683
Gearing Debt to Equity Ratio	1.8483
Gearing Debt to Asset Ratio	0.6455
Working capital per thousand Ringgit sale	27.5%
Days to sell the inventory	293
Days to collect the receivables	197
Days to pay the payables	208

Technical Analysis

SMA 20	1.43 (Uptrend 23 days)
SMA 50	1.346 (Uptrend)
SMA 100	1.274 (Uptrend)
SMA 200	1.247 (Same)
MACD (26d/12d)	0.024385 ( 0.001364 )
Signal (9)	0.030348 ( 0.001491 )
MACD Histogram	0.005963 (Bearish trend 6 days)

My notes based on 2011 quarter 4 report (number in '000):-
- Higher revenue and pbt 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

- As at 16 February 2012, outstanding order book of the group is RM657.7 million of which majority is from the oil and gas cranes for the offshore oil and gas exploration and production activities. Remaining are from the shipyard, construction and wind turbine industry

- Estimate next 4Q eps after 2011 Q4 result announced = 241502*0.21/182623 = 0.2777, estimate PE on current price 1.43 = 4.93(DPS 0.05)
- 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)

KLCI Stock - FAVCO / 7229 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	218,583,764 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.22-0.05)/0.1638 = 7.14 (Moderate)
Target Price	1.31+0.05 = 1.36 (PE 8.0, EPS 0.1638, DPS 0.05)
Decision	BUY if MACD back to uptrend and got strong buying volume than selling
Comment	Revenue decreased 1.4% and also lower than preceding year corresponding quarter 7.2%, eps increased 91.2% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 69.2%, cash generated from operating is more than enough to cover financing expenses but still spent 8.2% of Group cash to cover investing expenses, slightly better liquidity ratio at low level now, slightly lower gearing ratio at very high level now, all accounting ratio also high, higher inventory can indicate better demand of Group products
First Support Price	1.15
Second Support Price	1.05
Risk Rating	MODERATE

Research House

CIMB Target Price

1.23 (2011-11-24)

Accounting Ratio

Return on Equity	17.78%
Dividend Yield	4.10%
Profit Margin	14.38%
Tax Rate	0.64%
Asset Turnover	0.5993
Net Asset Value Per Share	1.22
Net Tangible Asset per share	1.17
Price/Net Tangible Asset Per Share	1.02
Cash Per Share	0.46
Liquidity Current Ratio	1.2356
Liquidity Quick Ratio	0.5941
Liquidity Cash Ratio	0.1852
Gearing Debt to Equity Ratio	2.1031
Gearing Debt to Asset Ratio	0.6777
Working capital per thousand Ringgit sale	26.0%
Days to sell the inventory	286
Days to collect the receivables	273
Days to pay the payables	220

Technical Analysis

SMA 20	1.236 (Downtrend 3 days)
SMA 50	1.185 (Uptrend)
SMA 100	1.12 (Downtrend)
SMA 200	1.196 (Uptrend)
MACD	0.033499 (Downtrend 6 days)
MACD Histogram	-0.004785 (Downtrend 3 days)

My notes based on 2011 quarter 3 report (number in '000):-
- Higher pbt mainly contributed by improvement in margin from sales of goods

- As at 16 November 2011, outstanding order book of the Group is RM609 million

- Estimate next 4Q eps after 2011 Q3 result announced = 0.2047*0.8 = 0.1638, estimate PE on current price 1.22 = 7.14(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)

KLCI Stock - FAVCO / 7229 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	174,687,844 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.975-0.05)/0.1146 = 8.07 (High)
Target Price	0.92+0.05 = 0.97 (PE 8.0, EPS 0.1146, DPS 0.05)
Decision	Not interested unless stock price got uptrend signal
Comment	Revenue increased 29% and also higher than preceding year corresponding quarter 17.9%, eps increased 108.3% and also higher than preceding year corresponding quarter 31% (however got high other income), cash generated from operating is more than enough to cover all expenses, slightly weaker liquidity ratio at low level now, slightly higher gearing ratio at very high level now, all accounting ratio also high
First Support Price	0.95
Second Support Price	0.88
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	15.74%
Dividend Yield	5.13%
Profit Margin	8.31%
Tax Rate	11.95%
Asset Turnover	0.6197
Net Asset Value Per Share	1.19
Net Tangible Asset per share	1.15
Price/Net Tangible Asset Per Share	1.01
Cash Per Share	0.57
Liquidity Current Ratio	1.2249
Liquidity Quick Ratio	0.6133
Liquidity Cash Ratio	0.2298
Gearing Debt to Equity Ratio	2.1445
Gearing Debt to Asset Ratio	0.682
Working capital per thousand Ringgit sale	24.1%
Days to sell the inventory	260
Days to collect the receivables	255
Days to pay the payables	200

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to increase in sales

- As at 18 August 2011, outstanding order book of the Group is RM675.3 million of which majority is from oil and gas cranes for the offshore oil and gas exploration and production activities. Remaining are from the shipyard, construction and wind turbine industry

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0955*1.2 = 0.1146, estimate PE on current price 0.975 = 8.07(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)

KLCI Stock - FAVCO / 7229 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	252,602,408 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.42-0.05)/0.0955 = 14.35 (High)
Target Price	0.76+0.05 = 0.81 (PE 8.0, EPS 0.0955, DPS 0.05)
Decision	Not interested unless profit from core business increase more
Comment	Revenue decreased 15.1% and is second consecutive quarter decreasing but still higher than preceding year corresponding quarter 13.7%, eps decreased 61.8%(preceding quarter got high other income) but higher than preceding year corresponding quarter 11.3%, cash generated from operating is more than enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at very high level now, all accounting periods also quite long time
First Support Price	1.12
Second Support Price	1.0
Risk Rating	HIGH

Accounting Ratio

Return on Equity	15.39%
Dividend Yield	3.52%
Profit Margin	4.91%
Tax Rate	7.55%
Asset Turnover	0.6369
Net Asset Value Per Share	1.13
Net Tangible Asset per share	1.08
Price/Net Tangible Asset Per Share	1.31
Cash Per Share	0.58
Liquidity Current Ratio	1.2338
Liquidity Quick Ratio	0.6659
Liquidity Cash Ratio	0.2526
Gearing Debt to Equity Ratio	2.0907
Gearing Debt to Asset Ratio	0.6765
Working capital per thousand Ringgit sale	24.1%
Days to sell the inventory	235
Days to collect the receivables	237
Days to pay the payables	168

My notes based on 2011 quarter 1 report (number in '000):-
- As at 19 May 2011, outstanding order book of the Group is RM496.4 million of which majority is from oil and gas cranes for the offshore oil and gas exploration and production activities. Remaining are from the shipyard, construction and wind turbine industry

- 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 PE on current price 1.42 = 14.35(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)

KLCI Stock - FAVCO / 7229 - 2010 Quarter 3

Company Info

Market Capital (Capital Size)	187,536,281 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.06-0.04)/0.1362 = 7.49 (Moderate)
Target Price	1.09+0.04 = 1.13 (PE 8.0, EPS 0.1362, DPS 0.04)
Decision	NOT BUY unless price below 1
Comment	Revenue second consecutive quarter increasing but still lower than preceding year corresponding quarter, profit second consecutive quarter increasing, higher than preceding year corresponding quarter also, free cash flow increasing, strong cash, outstanding order book decreased compared to year 2008 and 2009, profit margin increasing, liquidity ratio maintained at low level, gearing ratio decreasing but still at high level
First Support Price	0.98
Second Support Price	0.8
Risk Rating	HIGH

Accounting Ratio

Return on Equity	15.93%
Dividend Yield	3.77%
Profit Margin	10.49%
Tax Rate	25.61%
Asset Turnover	0.7712
Net Asset Value Per Share	1.06
Net Tangible Asset per share	1.0
Price/Net Tangible Asset Per Share	0.97
Cash Per Share	0.56
Liquidity Current Ratio	1.2017
Liquidity Quick Ratio	0.5843
Liquidity Cash Ratio	0.2499
Gearing Debt to Equity Ratio	2.2394
Gearing Debt to Asset Ratio	0.6913
Working capital per thousand Ringgit sale	17.5%
Days to sell the inventory	217
Days to collect the receivables	106
Days to pay the payables	140

My notes based on 2010 quarter 3 report (number in '000):-
- For the current period ended 30 September 2010("Q3 2010"), the Group recorded revenue of RM284.8 million with profit before tax of RM22.5 million as compared with revenue of RM359.9 million with profit before tax of RM23.1 million in the preceding period ended 30 September 2009("Q3 2009"), the decrease was mainly due to decrease in sales resulted from slow order intake in Year 2009 attributed to global slowdown

- The Group recorded a profit before tax of RM12.2 million for the current quarter as compared to the profit before tax of RM6.4 million in the preceding quarter. The increase was mainly due to increase in sales

- Estimate next 4Q eps after 2011 Q3 result announced = 0.1362, estimate PE on current price 1.02 = 7.2(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)

KLCI Stock - FAVCO / 7229 - 2010 Quarter 2

Market Cap : 176885020*0.825 = 145,930,141.50 (Small)
NTA per share : (178887-9506)/173890 = 0.97 (Decreased)
P/BV : 0.825/0.97 = 0.8505
Forecast P/E now : (0.825-0.04)/0.1362 = 5.76 (High)
ROE : 15.08% (Moderate)
DY : 0.04/0.825*100 = 4.85% (Moderate)
Fixed Asset Turnover(3 year) : (0.8258+0.8267+0.8968)/3 = 0.8498 (Moderate)
Liquidity Ratio : 496113/407486 = 1.2175 (Low)
Receivables Collection Period : (144587+166112)/2/(495097/365) = 114 days (Acceptable)
My Target Price : Not interested unless order book increase more
My Decision : NOT BUY
My Comment : Outstanding order book decreased compared to year 2008 and 2009, strong cash, very high debt but decreasing, navps slightly increased, O&G sector recovery
Technical Support Price : 0.76
Risk Rating : HIGH

My notes based on 2010 quarter 2 report (number in '000):-

- For the current period ended 30 June 2010("Q2 2010"), the Group recorded 19.5% lower revenue with 25% lower profit before tax as compared to the preceding period ended 30 June 2009("Q2 2009"), the decrease was mainly due to decrease in sales resulted from slow order intake in Year 2009 attributed to global slowdown

- The Group recorded a 68.4% higher profit before tax for the current quarter as compared to the preceding quarter. The increase was mainly due to increase in sales

- As at 19 August 2010, outstanding order book of the Group is RM450 million of which majority is from oil and gas cranes for the offshore oil and gas exploration and production activities. Remaining are from the shipyard, construction and wind turbine industry

- 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 PE on current price 0.825 = 5.76(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)

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