From all time high of RM 2.44 to current of RM 1.40, certainly it is not expensive to buy a reasonably good company.

Can see the non-current liability remained low

Current share price @ RM 1.40

PE stand @ 9.4 times compared to peer between 12 - 25 times

Free Cash Flow (FCF)
-18,263,131 2,405,773 20,614,291 -3,563,955 11,631,428 11,687,882 30,542,566

Net Cash from Operating Activity 8,887,642 20,229,438 33,783,365 3,848,079 15,399,448 22,535,512 36,365,600

CAPEX 27,150,773 17,823,665 13,169,074 7,412,034 3,768,020 10,847,630 5,823,034

Asset Turn Over
0.7371 0.5907 0.6790 0.8301 0.9593 1.0797 1.0159

Receivable Turn Ratio (days)
127 157 131 125 130 124 129

Inventories Turn Over (times per year)
1.89 1.43 2.10 3.10 3.61 3.24 2.79

Cash return on Invested Capital (CROIC)
-13.09% 1.68% 15.53% -2.40% 7.75% 6.81% 17.10%

Free Cash Flow (FCF) to Revenue
-10.23% 1.74% 13.46% -1.93% 5.36% 4.18% 9.95%

Revenue Over Capex
6.57 7.75 11.63 24.94 57.60 25.75 52.70

Net Income Over CAPEX
1.45 0.55 0.77 1.65 4.43 3.25 6.81

Retained Earning contribute to Total Equity (%)
19.53% 69.02% 68.73% 66.68% 67.23% 69.90% 72.14%

Share Capital Contribute To Total Equity (%)
50.30% 30.98% 31.27% 33.32% 32.45% 29.13% 27.07%

Current Asset to Total Asset
72.79% 64.44% 61.25% 60.21% 64.48% 70.91% 73.97%

Current Ratio
6.69 5.03 4.57 3.73 3.42 2.76 2.52

Debt To Equity Ratio
0.22 0.17 0.17 0.22 0.26 0.38 0.43

Non-Current Liability
16,870,285 3,068,151 3,254,371 4,314,456 3,777,013 5,737,526 3,158,429

Current Liability (including dividend,trade payable etc)
26,362,693 28,889,709 30,233,427 35,553,379 43,864,383 73,180,980 93,597,269

Outstanding Shares
284,375,000 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 300,525,968

Share Price 28 feb
0.94 0.25 0.51 0.56 0.52 1.47 1.80

Earning Yield (Magic Formula) (%)
20.60% 23.37% 9.89% 8.39% 11.26% 8.65% 8.47%

PE Ratio using Magic Formula
4.85 4.28 10.11 11.92 8.88 11.57 11.81

DUPONT's ROE (%)
19.74% 5.04% 5.31% 6.78% 9.03% 17.13% 17.84%

Return of Asset (%)
16.21% 4.33% 4.52% 5.55% 7.18% 12.38% 12.43%

Return of Invested Capital (ROIC) (%)
28.13% 6.82% 7.67% 8.22% 11.12% 20.57% 22.22%

PARAMETERS
02/28/08 02/28/09 02/28/10 02/28/11 02/28/12 02/28/13 02/28/14

Revenue RM
178,478,659 138,146,241 153,107,212 184,823,929 217,036,013 279,354,884 306,852,297

Operating Profit Before Tax (NOPBT)
47,977,209 12,982,413 12,982,413 14,821,183 19,372,529 41,960,514 50,002,683

Net Operating Profit After Tax (NOPAT)
39,260,355 9,758,820 10,180,720 12,213,989 16,689,283 35,275,985 39,678,693

Earning Per Share (EPS)
RM 0.1380 0.0325 0.0339 0.0407 0.0544 0.1146 0.1292

Dividen Per Share (RM)
0.060 0.030 0.040 0.080 0.045 0.070 0.090

Outstanding Shares
284,375,000 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000 300,525,968

Share Price 28 feb
0.94 0.25 0.51 0.56 0.52 1.47 1.80

Total Asset
242,141,679 225,625,381 225,358,290 219,964,782 232,545,876 284,900,933 319,185,042

Total Current Asset
176,258,791 145,388,737 138,039,624 132,440,583 149,941,472 202,023,423 236,102,978


Total Liability
43,232,978 31,957,860 33,487,798 39,867,835 47,641,396 78,918,506 96,755,698

Non-Current Liability
16,870,285 3,068,151 3,254,371 4,314,456 3,777,013 5,737,526 3,158,429

Net Cash from Operating Activity
8,887,642 20,229,438 33,783,365 3,848,079 15,399,448 22,535,512 36,365,600

Cash and Cash Equivalent at the end of period
67,043,132 45,222,713 52,010,351 26,455,809 28,820,910 36,833,420 46,438,929

Earning before Interest & Tax (EBIT)
49,755,225 13,970,438 13,277,055 15,196,194 19,676,917 41,764,162 50,084,058

Mr kc, in fact, ROE, ROA, ROIC are all deteriorating...

Current FY's 3Q cash flow red flag!

1) DUPONT's ROE
17.99% 15.81% 16.10% 14.68
--------------------------------------------------
0.1251 0.1037 0.1036 0.1003
0.8505 0.8118 0.8081 0.7698
1.6909 1.8776 1.9220 1.9011

2) Debt to Equity
0.52 0.71 0.75 0.74

3) FCF
-13,290,563 -14,044,796 -7,136,285 1,740,732

4) ROA
10.64% 8.42% 8.37% 7.72%

5) ROIC
15.81% 12.97% 12.56% 11.83%

6) EY
20.59% 19.70% 19.77% 17.13%

7) PE
4.86 5.08 5.06 5.84

DUPONT's ROE (%)
29.45% 16.55% 13.41% 14.93% 13.53% 15.64% 13.82% 18.71% 16.59% 17.88% - PASS

Return of Asset (%)
24.78% 15.45% 13.05% 13.77% 12.53% 13.98% 11.71% 16.17% 14.40% 15.47% - PASS

Return of Invested Capital (ROIC) (%) - PASS
41.06% 50.04% 21.02% 22.55% 22.73% 28.44% 21.94% 27.66% 28.51% 29.24%

Earning Yield (Magic Formula) (%) - PASS
210.22% 41.49% 18.76% 24.65% 16.14% 16.75% 11.99% 18.45% 15.94% 14.38%

PE Ratio using Magic Formula - PASS
0.48 2.41 5.33 4.06 6.20 5.97 8.34 5.42 6.27 6.96

Current Ratio - PASS
4.35 18.01 50.39 11.61 11.83 7.64 5.05 5.35 5.61 5.19

Asset Turn Over - PASS
0.9388 0.7751 0.5789 0.7423 0.6162 0.7792 0.8482 0.8784 0.9054 0.8867

Debt To Equity Ratio - PASS
0.23 0.07 0.03 0.08 0.08 0.12 0.18 0.16 0.15 0.16

Receivable Turn Ratio (days) - PASS
133 137 159 126 148 105 99 112 111 115

Free Cash Flow (FCF)
267,361 -617,373 -1,255,611 1,143,563 4,253,034 4,374,273 1,745,007 1,650,978 4,829,707 1,034,366

Inventories Over Revenue- PASS
26.72% 26.04% 36.01% 28.83% 29.77% 19.98% 26.47% 26.88% 23.36% 26.19%

Net Receiveable Over Revenue (%) - PASS

36.49% 47.92% 42.14% 39.58% 37.61% 28.93% 29.43% 34.51% 28.81% 36.22%

Parameter 06/30/05 06/30/06 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14

Revenue
8,221,213 10,971,702 11,729,658 16,727,414 15,258,545 20,229,963 23,543,576 25,825,999 28,068,442 30,385,705

Gross Proft
5,095,397 7,072,647 6,415,023 8,376,626 8,696,488 10,774,361 12,342,316 13,502,214 13,911,781 15,023,560

Net Operating Profit After Tax (NOPAT)
2,169,850 3,020,947 2,738,058 3,317,164 3,186,068 3,704,405 3,397,597 4,817,654 4,639,370 5,618,340

Outstanding Shares
3,000,000 89,654,795 120,000,000 120,000,000 173,808,219 174,217,671 175,264,947 178,087,383 179,559,519 181,988,612

Earning Per Share (EPS) RM
0.7233 0.0337 0.0228 0.0276 0.0183 0.0213 0.0194 0.0271 0.0258 0.0307 - PASS

Share Price 31 December
0.19 0.19 0.20 0.19 0.18 0.19 0.23 0.19 0.215 0.250

Market Capitalization
570,000 17,034,411 24,000,000 22,800,000 31,285,479 33,101,357 40,310,938 33,836,603 38,605,297 45,497,153


Total Asset
8,756,919 19,552,907 20,974,127 24,096,229 25,429,467 26,498,016 29,018,580 29,786,287 32,217,379 36,317,811

Total Liability
1,683,504 1,303,368 559,377 1,879,350 1,875,155 2,810,372 4,442,693 4,040,173 4,252,184 4,889,297


Total Equity
7,367,907 18,249,539 20,414,750 22,216,879 23,554,312 23,687,644 24,575,887 25,746,114 27,965,195 31,428,514

Net Cash from Operating Activity
631,233 -147,615 1,074,895 3,245,883 4,514,861 5,114,320 3,885,573 3,992,852 7,625,449 4,377,464

CAPEX
363,872 469,758 2,330,506 2,102,320 261,827 740,047 2,140,566 2,341,874 2,795,742 3,343,098

KPJ : TMC Life

Market Cap (million): 3771/701 = 5.4 times size

Total liability (million): 1872/34 = 55 times

Cash (million): 213/190= 1.12 times

Note: Suggest to verified above figures

PE revisit: @ 0.76 share price

=> 6.8 x @ FY 13's EPS

Sensitivity analysis for foreign currency risk

Foreign currency risk arises from Group entities with Ringgit Malaysia (“RM”) and Singapore Dollar (“SGD”) functional currencies.

A 1% strengthening of the Euro, SGD and USD against the respective functional currencies of the Group entities would have increase/(decrease) profit net of tax by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant.


Group
2013 2012
RM’000 RM’000
Profit Net of tax
Euro/RM 4 9
SGD/RM 185 69
USD/RM 0 2

SGD currency has since appreciated about 5% to date against Ringgit.

Expected It translate into 185,000 x 5 = 925,000 net of tax if calculation and assumption is correct.

PARAMETERS
12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13

5) PE Ratio using Magic Formula
-10.36 3.17 1034.18 680.36 3.50 6.22 5.88 4.30 3.51 6.10

@0.72, the share is traded at 6.52 x of FY 13's earning.

Scenario 1:

8 x FY 13's earning, the share is POSSIBLY traded at RM 0.86

Scenario 2:

For asset-light company, 12 x FY 13's earning, the share is POSSIBLY traded at RM1.24

scenario 3:
Market Value (Share Price) Generation (per $ EPS Retained)
2.38 2.44 1.75 1.22 1.59 1.54 0.87 0.82 1.56

@ average of 1.57, the share possibility traded at RM 0.69 (already reflected).

1) DUPONT's ROE (%)
-7.63% 12.93% 19.27% 17.08% 15.49% 20.90% 15.18% 13.46% 21.06% 22.39% - PASS

2) Return of Asset (%)
-6.52% 10.72% 16.96% 15.23% 13.53% 18.16% 13.62% 12.29% 18.08% 18.45% - PASS

3) Return of Invested Capital (ROIC) (%)
-14.42% 26.87% 35.22% 29.93% 81.83% 124.87% 108.44% 72.51% 97.98% 81.86% - PASS

4) Earning Yield (Magic Formula) (%)
-9.65% 31.54% 0.10% 0.15% 28.60% 16.08% 17.00% 23.24% 28.46% 16.41% - PASS

5) PE Ratio using Magic Formula
-10.36 3.17 1034.18 680.36 3.50 6.22 5.88 4.30 3.51 6.10 - PASS

6) Current Ratio
6.49 5.56 7.87 8.12 6.97 6.70 8.78 10.26 6.38 5.30 - PASS

7) Debt To Equity Ratio
0.17 0.21 0.14 0.12 0.14 0.15 0.11 0.10 0.16 0.21 - PASS


8)Asset Turn Over
0.9688 0.9677 0.8965 1.0224 0.9001 0.9609 0.7903 0.7638 1.0944 1.0870 - PASS

9) Receivable Turn Ratio (days)
160 163 191 179 129 54 53 53 51 64 - PASS

10) Inventories Turn Over (times per year)
9.62 10.13 13.86 26.60 21.26 23.97 24.16 24.75 42.98 48.40 - PASS

11) Free Cash Flow (FCF) 1,468,050 3,952,604 566,000 3,521,000 14,156,000 8,320,000 16,468,000 6,157,000 1,803,000 17,889,000 - PASS

12) Cash return on Invested Capital (CROIC):

9.37% 24.47% 2.47% 12.79% 143.70% 82.36% 191.78% 53.27% 11.60% 75.91% - PASS

13) Free Cash Flow (FCF) to Revenue:
4.37% 10.87% 1.43% 6.78% 27.67% 13.42% 30.23% 11.80% 2.16% 17.43%- PASS

14) Free Cash Flow (FCF) to short term debt
0.30 0.57 0.10 0.60 1.88 0.92 2.45 1.07 0.15 0.99 - PASS

15) Revenue Over Capex
64.60 108.23 33.06 30.86 44.37 149.04 118.93 136.90 83.01 62.04 - PASS

16) Net Income Over CAPEX
-4.35 12.92 6.75 4.89 6.99 30.32 20.33 22.00 15.16 11.66 - PASS

17) Capex Requirement (%) per dollar net earning
-23.00% 7.74% 14.81% 20.43% 14.30% 3.30% 4.92% 4.55% 6.60% 8.57% - PASS

18) Retained Earning contribute to Total Equity (%)
16.25% 26.16% 46.10% 52.77% 52.44% 59.04% 60.44% 62.52% 67.96% 72.79% - PASS

19) Share Capital Contribute To Total Equity
83.75% 73.84% 59.32% 51.41% 47.66% 41.09% 40.42% 39.83% 34.29% 28.78% - PASS

20) Current Asset to Total Asset
92.67% 94.81% 94.09% 87.89% 88.05% 86.95% 86.17% 86.38% 88.45% 91.43% - PASS

A review on Williow:

PARAMETERS
12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13


1) Revenue RM
33,562,191 36,358,717 39,445,000 51,937,000 51,157,000 62,001,000 54,470,000 52,160,000 83,427,000 102,611,000

2) Net Operating Profit After Tax (NOPAT)
-2,258,626 4,341,172 8,055,000 8,238,000 8,061,000 12,614,000 9,312,000 8,381,000 15,231,000 19,291,000

3) Earning Per Share (EPS) RM
-0.0091 0.0175 0.0325 0.0332 0.0325 0.0510 0.0377 0.0349 0.0632 0.0795

4) Dividen Per Share (RM)
0 0.0 0.0000 0.0100 0.0200 0.0300 0.0300 0.0250 0.0300 0.0200

5) Share Price 31 December
0.10 0.12 0.20 0.23 0.23 0.35 0.40 0.30 0.34 0.68

6) Outstanding Shares
248000000 248,000,000 248,000,000 248,000,000 247,831,749 247,585,312 246,980,734 243,606,328 243,406,600 243,406,600

7) Enterprize Value
15,103,956 17,989,526 35,669,000 44,028,000 34,925,302 94,494,736 68,094,294 43,918,898 64,002,244 140,870,488

8) EBIT

-1,457,441 5,673,971 34,490 64,713 9,988,000 15,195,000 11,578,000 10,205,000 18,212,000 23,112,000

9) EBITDA
44,315 6,413,252 575,490 579,713 10,464,000 15,732,000 12,191,000 10,810,000 18,862,000 23,866,000

Scenario 2:
Market Value (Share Price) Generation per $ EPS Retained -1.08 -0.74 -0.16 0.80

@ RM 1.00 market value change vs RM 1.00 earning,

FY2014's earning, share price possibly traded at RM 0.90.

5.PE Ratio using Magic's Formula 3.88 5.25 2.69 3.08 4.54

Scenario 1:
at 8 x FY 2014's earning, the share price POSSIBLY trade at RM 1.245

1) DUPONT's ROE (%)
9.19% 5.07% 9.18% 11.10% 7.48% 10.66% 9.63% 11.19%

2)Return of Asset (%)
7.33% 3.83% 7.47% 9.25% 6.02% 8.39% 7.48% 8.83%

3) Return of Invested Capital (ROIC) (%)
10.47% 5.24% 10.63% 13.76% 8.64% 12.04% 10.58% 12.66%

4) PE Ratio using Magic Formula
7.85 15.36 5.45 7.07 9.48 6.45 7.34 7.60

5) Current Ratio
2.98 2.49 3.72 3.79 2.93 2.64 2.89 3.36

6) Asset Turn Over
1.0992 1.0568 0.9402 0.9402 1.0597 1.2831 1.2816 1.2773

7) Debt To Equity Ratio
0.25 0.32 0.23 0.20 0.24 0.27 0.29 0.27

8) Free Cash Flow (FCF)
4,852,881 -4,701,861 11,547,608 10,702,228 8,273,268 -500,444 5,348,993 17,530,980

9) Cash return on Invested Capital (CROIC):
6.07% -5.31% 12.57% 11.65% 8.18% -0.45% 4.40% 13.70%

10)Dividen Per Share (RM)
0.0007 0.0350 0.035 0.100 0.080 0.080 0.0800 0.0950

11) Revenue Over Capex
37.05 8.66 16.67 32.49 31.94 21.49 13.14 37.61

12) Net Income Over CAPEX
2.47 0.32 1.37 3.27 1.87 1.47 0.80 2.69

Parameters 03/31/07 03/31/08 03/31/09 03/31/10 03/31/11 03/31/12 03/31/13 03/31/14

Revenue RM
125,508,573 124,397,459 118,440,509 125,709,885 149,294,765 195,269,469 212,099,889 226,889,306

Net Operating Profit After Tax (NOPAT)
8,371,380 4,639,629 9,766,635 12,643,771 8,740,183 13,357,571 12,852,471 16,206,846

Earning Per Share (EPS) RM
0.1390 0.0790 0.1630 0.2067 0.1450 0.2181 0.2129 0.2695

Total Asset
114,184,892 121,226,918 130,723,679 136,676,616 145,099,665 159,266,086 171,723,113 183,543,437

Total Liability
23,103,218 29,705,615 24,330,467 22,814,631 28,297,497 33,906,347 38,310,903 38,724,381

Total Equity
91,081,674 91,521,303 106,393,212 113,861,985 116,802,168 125,359,739 133,412,210 144,819,056

Hi Mr Tan, kindly please put in my selection this year:

1. Coastal- 20%
2. Fiamma - 10%
3. Scicom - 20%
4. Inari - 20%
5. TMCLife - 15%
6. CBIP - 15%

Thank you

Mr Tan, if not too much trouble to you, May i suggest you also do a quarter review and sum up at the end of one year for one whole year review. Thank you.

Mr KCChongnz, thanks for your input. Agreed with you as too much expectation on future potential will not only required time, but also the luck. There maybe good in future but only god know. cheers!

Thanks Tan KW, indeed a great example of failure to invest based on future! Cheers!
http://klse.i3investor.com/servlets/pfs/26181.jsp

PARAMETERS 08/31/10 08/31/11 08/31/12 08/31/13 08/31/14

1.DUPONT's ROE (%) 35.03% 17.04% 21.77% 20.56% 24.08% - PASS

2.Return of Asset (%) 27.53% 13.37% 18.34% 17.28% 20.94% -PASS

3.Return of Invested Capital (ROIC) (%) 45.95% 18.19% 28.89% 30.08% 44.60% - PASS

4.Earning Yield (Magic Formula) (%) 25.79% 19.05% 37.21% 32.43% 22.04%- PASS

5.PE Ratio using Magic Formula 3.88 5.25 2.69 3.08 4.54- PASS

6.Current Ratio 4.38 3.69 5.95 5.85 7.57- PASS

7.Asset Turn Over 1.5096 1.1540 1.1855 1.1571 1.1568- PASS

8.Debt To Equity Ratio 0.27 0.27 0.19 0.19 0.15- PASS

9.Receivable Turn Ratio (days) 25 32 27 29 28- PASS

10.Inventories Turn Over (times per year) 3.42 2.41 2.36 2.80 3.20- PASS

11.Free Cash Flow (FCF) 14,832,786 -3,693,427 18,925,351 17,664,681- PASS
27,871,461

12.Cash return on Invested Capital (CROIC): 33.99% -6.07% 32.64% 29.62% 51.15%- PASS

13.Free Cash Flow (FCF) to Revenue: 13.49% -4.11% 18.33% 15.65% 21.92%- PASS

14.Free Cash Flow (FCF) to short term debt: 1.46 -0.30 2.03 1.48 2.56- PASS

15.Dividend Payout Ratio 49.18% 41.67% 40.82% 49.60% 50.40% - GOOD

16.Revenue Per $ Capex 56.32 11.10 90.10 114.93 72.02 - GOOD

17.Net Income Per $ CAPEX 10.27 1.37 14.62 18.26 13.76- GOOD

18.Graham Net Nets Current Asset Value (NCAV) 0.1496 0.1399 0.2057 0.2663
0.3370

19.Graham Net Nets Working Capital (NNWC) 0.0947 0.0644 0.1342 0.1902 0.2673

20.Retained Earning contribute to Total Equity (%) 25.25% 35.22% 42.61% 47.45% 51.66%- GOOD

21.Share Capital Contribute To Total Equity (%) 75.15% 66.19% 51.99% 45.84%
39.63% - GOOD

22.P.P.E. To Total Asset : 38.85% 44.11% 38.66% 32.30% 28.48%- GOOd

23.Current Asset to Total Asset 61.15% 55.32% 60.82% 67.24% 71.11% - GOOD

24.CAGR of EPS (%) 17.00%
EPS (sen) 10.37 5.40 7.35 7.56 10.12

25. CAGR of Dividend (%) 22.70%
DIvidend (RM) 0.051 0.0225 0.03 0.0375 0.051

26. CAGR of Revenue (%) 9.08%
Revenue (RM) 109,969,268 89,826,627 103,245,987 112,905,253 127,175,745

27. CAGR of Net Profit (%) 21.72%
NOPAT (RM) 20,054,894 11,071,554 16,749,628 17,940,910 24,303,054

28. CAGR of Fixed Asset (%) 2.47%
Fixed Asset (P,P,E) 28,299,682 36,533,776 35,315,119 33,525,918 33,059,482

29. CAGR of Current Asset (%) 13.13%
Current Asset 44,545,334 45,818,670 55,555,147 69,794,794 82,540,291

30. CAGR of Receiveable (%) 5.38%
Trade Receivable 7,438,261 8,471,578 7,078,371 11,029,828 8,507,602

31. CAGR of Inventories (%) 3.97%
Inventories 17,512,528 25,332,906 22,951,687 23,211,110 21,271,719

32.CAGR of Total Liabilty (%) -0.60%
Total Liability 15,601,183 17,843,222 14,411,414 16,540,950 15,136,957

33.CAGR of Current Liability / Payable (%) 1.41%
Current Liability/ Payable 10,161,121 12,422,967 9,335,305 11,923,810 10,898,549

34.CAGR of Non-Current Liability / Borrowing (%) -4.87%
Non-Current Liability/ Borrowing 5,440,062 5,420,255 5,076,109 4,617,140 4,238,408

35.CAGR of Asset (%) 9.77%
Total Asset 72,845,016 82,830,952 91,348,772 103,799,218 116,078,279

36.CAGR of Total Equity (%) 12.01%
Total Equity 57,243,833 64,987,730 76,937,358 87,258,268 100,941,322

CAGR of EPS (%) 26.05%
3.84 11.41 20.45 13.11 17.37 23.56 21.59 26.38 30.48

CAGR of Dividend (%) 12.98%
0.02 0.05 0.03 0.04 0.055 0.07 0.07 0.08 0.09

CAGR of Revenue (%) 15.57%
91,963,000 121,429,000 162,943,000 178,191,000 200,688,000 225,494,000 258,450,000 292,884,000 338,161,000

CAGR of Net Profit (%) 34.60%
3,136,000 9,923,000 17,131,000 15,757,000 22,459,000 30,254,000 29,722,000 38,047,000 45,473,000

CAGR of Fixed Asset (%) -5.00%
56,537,000 32,994,000 35,826,000 49,019,000 46,082,000 62,739,000 29,977,000 28,942,000 35,627,000

CAGR of Current Asset (%) 22.18%
62,474,000 89,674,000 106,976,000 136,741,000 152,678,000 185,608,000 241,203,000 350,478,000 379,034,000

CAGR of Total Liabilty (%) 21.06%
24,084,000 42,039,000 91,022,000 88,257,000 80,950,000 83,752,000 88,151,000 118,429,000 134,510,000

CAGR of Current Liability / Payable (%) 22.86%
20,069,000 37,569,000 75,300,000 71,528,000 72,805,000 77,903,000 82,488,000 115,233,000 128,036,000

CAGR of Non-Current Liability / Borrowing (%) 5.45%
4,015,000 4,470,000 15,722,000 16,729,000 8,145,000 5,849,000 5,663,000 3,196,000 6,474,000

CAGR of Total Asset (%) 14.50%
139,361,000 166,604,000 231,511,000 268,950,000 278,745,000 325,527,000 361,127,000 420,290,000 471,580,000

CAGR of Total Equity (%) 12.66%
115,277,000 124,565,000 140,489,000 180,693,000 197,795,000 241,775,000 272,976,000 301,861,000 337,070,000

11. Dividend Payout Ratio 52.08% 43.82% 14.67% 30.51% 31.66% 29.71% 32.42% 30.33% 29.53%

12. Revenue Over Capex 183.19 199.72 111.15 114.15 -183.11 106.26 163.16 146.15 34.03

13. Net Income Over CAPEX 6.25 16.32 11.69 10.09 -20.49 14.26 18.76 18.99 4.58

14. Graham Net Nets Current Asset Value (NCAV) 0.4628 0.6042 0.2131 0.4381 0.6083 0.8638 1.2273 1.7645 1.8006

15. Retained Earning contribute to Total Equity (%) IDEAL: > 23.70% 31.60% 36.12% 28.13% 33.77% 36.48% 38.91% 42.85% 47.41%

16. Share Capital Contribute To Total Equity (%) IDEAL: < 74.47% 68.92% 61.10% 69.26% 63.27% 51.76% 50.03% 46.90% 42.75%

17. Current Asset to Total Asset: 44.83% 53.82% 46.21% 50.84% 54.77% 57.02% 66.79% 83.39% 80.38%

Year 09/30/06 09/30/07 09/30/08 09/30/09 09/30/10 09/30/11 09/30/12 09/30/13 09/30/14
1. DUPONT's ROE (%) 2.72% 7.97% 12.19% 8.72% 11.35% 12.51% 10.89% 12.60% 13.49% - PASS

2.Return of Invested Capital (ROIC) (%) 3.41% 11.52% 16.33% 14.45% 18.94% 20.64% 21.70% 30.00% 38.35% - PASS

3. Earning Yield (Magic Formula) (%) 6.90% 15.74% 19.14% 18.52% 21.57% 26.93% 21.80% 22.39% 19.18% - PASS

4. PE Ratio using Magic Formula 14.49 6.35 5.22 5.40 4.64 3.71 4.59 4.47 5.21 - PASS

5. Current Ratio 3.11 2.39 1.42 1.91 2.10 2.38 2.92 3.04 2.96 - PASS

6. Debt To Equity Ratio 0.21 0.34 0.65 0.4 0.41 0.35 0.32 0.39 0.40 - PASS

7. Receivable Turn Ratio (days) 86 92 95 96 95 98 103 104 94- PASS

8. Free Cash Flow (FCF) 5,104,000 3,276,000 -2,771,000 23,349,000 14,609,000 21,502,000 -1,107,000 42,202,000 42,746,000 - PASS

9. Cash return on Invested Capital (CROIC): IDEAL > 13% 5.54% 3.80% -2.64% 21.41% 12.32% 14.67% -0.81% 33.27% 36.05% - PASS

10. Free Cash Flow (FCF) to Revenue: IDEAL > 10% 5.55% 2.70% -1.70% 13.10% 7.28% 9.54% -0.43% 14.41% 12.64% - PASS

Revenue Over Capex (Revenue Generated per $ capex)
FY 2006 2007 2008 2009 2010 2011 2012 2013 2014
(RM )11.21 11.26 26.00 18.14 25.91 50.37 21.01 18.12 45.43

Net Income Over CAPEX (Profit Generated per $ capex)
FY 2006 2007 2008 2009 2010 2011 2012 2013 2014
(RM )1.31 1.17 1.24 1.09 1.76 4.76 2.12 1.97 6.19

Net Operating Profit After Tax (NOPAT)
9,091,328 11,646,565 5,662,118 8,700,687 8,337,147 13,323,853 13,228,171 14,529,096 21,816,238

Asset Turn Over
1.5745 2.1152 2.1562 2.4206 1.9772 2.1675 1.8693 1.7904 1.9699

Return of Asset (%) 18.37% 22.10% 9.93% 13.91% 13.54% 19.44% 18.40% 18.71% 25.68%

Revenue RM
77,904,664 108,066,840 118,271,623 144,671,483 122,668,265 140,975,181 131,225,762 133,843,844 160,142,765

Retained Earning
9,000,295 15,096,527 15,849,343 19,244,170 20,944,692 28,571,927 33,420,684 39,386,445 41,853,260

Debt To Equity Ratio
0.34 0.18 0.24 0.26 0.18 0.12 0.11 0.10 0.18

Current Ratio
4.12 6.15 4.03 4.03 5.69 8.69 8.87 9.07 5.42

Return of Invested Capital (ROIC) (%)
55.75% 35.67% 21.06% 23.49% 22.11% 36.17% 34.47% 32.18% 61.51%

DUPONT's ROE (%)
24.57% 25.98% 12.35% 17.59% 16.01% 22.17% 20.38% 20.60% 30.36%

Free Cash Flow (FCF) to Revenue: IDEAL > 10%
8.66% 8.63% 14.93% 0.81% 5.34% 11.76% 7.17% 4.00% 20.09%

Cash return on Invested Capital (CROIC): IDEAL > 13%
41.36% 28.56% 65.71% 3.16% 17.38% 45.03% 24.51% 11.85% 90.70%

PARAMETERS
06/30/06 06/30/07 06/30/08 06/30/09 06/30/10 06/30/11 06/30/12 06/30/13 06/30/14
Free Cash Flow (FCF)
6,744,599 9,325,571 17,662,108 1,169,844 6,554,614 16,585,421 9,405,200 5,349,042 32,171,382

Indeed a Super Cash Cow!!!

#stock operator, Just sharing my findings:
1) I do not know if there is any mistake of my calculation but if i use Dupont to calculate the ROE, the ROE has been in the decrease mode of 21% -> 17% -> 12% -> 11% due to getting smaller net margin of 28% -> 26% -> 18% -> 16% up to last FY.
2) ROA has since dropped from 16% to 9% up to last FY.
3) FCF, ROIC etc are also deteriorating.
4) the foreign currency translation loss has topped to RM -14 million from RM 852k for past 4 years.

Perhaps long term investment may not be a good buy if situation not improved.

A very good articles to share (again)
ACE Market take-over trap
Saturday, 18 October 2014
By: YVONNE TAN

http://www.thestar.com.my/Business/Business-News/2014/10/18/ACE-Market-takeover-trap/?style=biz

THERE is growing concern that ACE Market firms are increasingly being seen as platforms for new owners to bring in businesses which fail to deliver value in the end.

These exercises often bypass the traditional reverse takeover (RTO) route.

For example, a new owner will first gain control of a target company by acquiring shares in it.

Once in a strong position, the new owner would then give the impression of turning around the company with a new business, thereby creating some excitement around the firm’s shares.

This typically results in the shares of the listed target moving up to reflect the perceived value of the new assets.

However over time, many of these assets don’t deliver the earnings value that they are supposed to.

A keen market observer opines that often, some of these target companies are used for the injection of “junk or low-quality assets”.

“At times, these small firms are used for consecutive asset injection, increasing their market value in a short span of time, after which the new owners will cash in on the inflated value of the firm,” notes the observer.

He says all these defeat the original purpose of the ACE Market which is a platform for young entrepreneurs to raise funds for their businesses.

“Now it looks like people are using companies as a quick route to access the capital markets.”

Notably, in certain circumstances, there are even no assets injected as in the case of GPRO Technologies Bhd.

Recall in GPRO’s case, there was talk in 2012 of foreign market personality Christian Kwok-Leun Yau Heilesen injecting assets into the loss-making firm when he took over it, but nothing to that end, materialised.

Save for a name change to G Neptune Bhd, the company remains loss-making today.

Generally, companies which are targets for these kind of thing are small, struggling ACE market firms that hardly attract any investor attention. In contrast to a new owner merely taking over a target firm by acquiring shares, RTOs are generally safeguarded in the sense that when a party wants to take over a firm, firstly it has to have assets to inject into the company.

The regulators have to vet the assets and study thoroughly the valuations.

To this end, shareholders are protected from low-quality assets going into a firm.

An example of a fairly recent RTO is IT firm Jag Bhd, formerly known as Infortech Alliance Bhd, buying over profit-making Jaring Metal Industries Sdn Bhd (JMI) which is involved in the recycling of E-waste last year.

With JMI injected into its stable, the initially loss-making Jag was immediately pushed into the black, recording a net profit of RM1.7mil on revenue of RM35.5mil for the fourth quarter ended Dec 31,2013 after bleeding red ink for quarters on end.

It has since completed several rounds of corporate exercises to reward shareholders.

Another example is PUC Founder (MSC) Bhd which was taken over by London’s AIM Market-listed Resource Holding Management Ltd.

PUC’s RTO exercise which was completed in January involved Resource Holding injecting the core business of its unit, Red Media Asia Ltd Group (RMA Group), into PUC for RM90mil.

For the six months ended June 30, PUC which core business involves supplying biometrics security products and providing electronic publishing and management information systems to publishers announced a net profit of RM4.7mil on revenue of RM28.3mil compared with a net profit of RM1.05mil on revenue of RM11.5mil earlier.

Following the injection of Resource Holding’s assets into PUC, there has been consolidation of additional earnings from the Malaysian-owned Resource Holding’s core businesses which are media brokerage services and financial related services.

All said and done, investors should be discerning enough to know the difference between an RTO and the scenario where a new shareholder emerges in a company with new, unsubstantiated plans.

价格 对垒 价值。此其彼落， 此消彼长。。无需太在意。。

Just sharing opinion: if you notice besides GOB, AMPROP & SYMLIFE are all companies with very low PE but high ROE.. My suggestion is for you to calculate the ROE using Dupont Analysis, use EBIT/EV to re-assess the earning yield and EV/EBIT to relook at the PE. Also to look at the Dividend yield. After you done your calculation, then you will know why these counter remained at low PE, high ROE and etc but not many interested to invest in this counter. Happy investing!