ENG TEKNOLOGI
Description: manufactures hard disk drive peripherals components, industrial machinery, equipment, precision tools, electronic and computer parts, high precision mould, die, jigs, fixture, and automation system.
Price: MYR 1.88 as at 10am 27 December 2010
52Wk High 3/25/2010: 2.98
52Wk Low 12/28/2009: 1.46
Highest P/E since 1/1/2009: 9.94
Lowest P/E 1/1/2009: 2.54
Average P/E: 5.59
Book Value/share: RM2.00
Holders
• PNB is the majority stakeholder, 14.46%
• Lembaga Tabung Haji 8.34%
• AIG ASIAN Oppurtunity 4.86%
• Prudential Unit Trust 1.09%
• Apex Investment Securities 0.08%
• RHB Unit Trust 0.06%
• Integra Capital 0.05%
• 28.94 out of 63.60%, about half of the substantial shareholders are institutions.
Highlights
• Dividend yield 6.49%, the highest among the peers
• Market Capitalization 228.22 million, the highest among the peers
• Net Cash
• Lowest trailing 12 month P/E among the peers
Risks
• Revenue, net income and EPS q-o-q decreased.
• Strengthening Ringgit Malaysia against USD
• High inventory levels as HDD’s consumer demand has been weak.
Catalyst
• ENG is technically bottomed out with return of buying interest, resistance at RM2.25 and RM2.63. RSI is getting closer to 70 level while daily fast MACD has entered positive territory.
• HDD companies have bottomed out and are recovering, thus I think ENG will follow suit.
• Higher demand for Notebooks & PCs
• Research house comments
HLG Research said “HDD growth is expected to continue, driven by growth in China, cloud computing, DVRs and the PC placement cycle”, “Notebook makers are seeing good demand, translating to increased orders in November”, “A re-stocking of HDDs in 1Q CY2011 could spur a re-rating cycle for Malaysian HDD companies.”
HLG Research has downward revised the target price to RM2.15, but maintained its Buy call. Personally, I think ENG has more upside compared with its peers. Why? 1) ENG has higher dividend yield of 6.49% compared with other local players such as JCY at 5.65%, Notion Vtec at 4.12%. 2) ENG has the lowest trailing 12-month P/E of 3.7x among the local and global players such as JCY at 9.56x, Notion Vtec at 6.72x, Western Digital at 6.03x and Seagate at 4.84x. 3) ENG priced below BPS.
Thus, I believe ENG will grow further. With an average industry P/E of 6.7 after 20% discount and FY2010 consensus EPS of 46 sen, i think ENG should worth about RM2.46, which is 15% more than HLG Research's target. Combined with technical configuration, I believe ENG may increase further to at least RM2.25.
Source: HLG Research
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Monday, December 27, 2010
Wednesday, December 22, 2010
Zelan technically bottoming out?
Facts:
1)Historical fundamental less attractive as FYE2010 revenue dropped by half
2)Loss making company
3)Gearing about 60%
4)Book Value 0.83
Current price 0.58
Yesterday 0.53
Technical-wise
Daily chart shows that the counter is bottoming up with the forming of second consecutive higher low.
Daily fast MACD crosses signal line, moving towards the zero line.
RSI improves and remains at neutral zone.
DMI is in the midst of staging positive crossover.
Support is at 0.50
Resistance lies between 0.65 and 0.75
Technically, i think downside of the company is limited without taking the fundamental into consideration. short-term ? I guess okay. Medium/Long-term? No Idea.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
1)Historical fundamental less attractive as FYE2010 revenue dropped by half
2)Loss making company
3)Gearing about 60%
4)Book Value 0.83
Current price 0.58
Yesterday 0.53
Technical-wise
Daily chart shows that the counter is bottoming up with the forming of second consecutive higher low.
Daily fast MACD crosses signal line, moving towards the zero line.
RSI improves and remains at neutral zone.
DMI is in the midst of staging positive crossover.
Support is at 0.50
Resistance lies between 0.65 and 0.75
Technically, i think downside of the company is limited without taking the fundamental into consideration. short-term ? I guess okay. Medium/Long-term? No Idea.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Monday, December 20, 2010
SCIENTEX (#2)
Update on 1QFY2011 Result
· Although revenue q-o-q dropped slightly to 186.63 m from 191.69 m in 4QFY2010 (-2.64%), it recorded a 13.17% increase from the same quarter in 2010.
· Within our expectation, the first quarter always has a lower sale value compared with the fourth quarter but overall it is in a rising trend as shown below.
· In line with revenue, PBT y-o-y surged 43%. This is mainly due to lower interest expense and higher investing results. However, a higher tax amount caused PAT y-o-y only recorded a 32% increase.
· Y-o-y, EPS leaped higher from 5.91 sen to 7.89 sen, representing a 33.5% increase.
· Reserves increased by 18.444 m. Largely came from the current asset includes receivables, derivative financial assets and cash and bank balances whilst total borrowings decreased by 6.37 m.
· Gearing improved from 0.11x (July 2010) to 0.08x (October 2010). (net of cash)
· ROE & ROA improved.
· There is no dividend policy but the company said that they will try to distribute 30% on average based on performance basis.
Highlights
Packaging Industries
· Stretch film and pp strapping band are the major contribution among the manufacturing lines to the top line, which contributed 55% and 10% respectively.
· Stretch film’s capacity has been growing since 1998 from 8k MT p.a to currently 100k MT p.a, which has a total of 8 production lines. The company will continue to expand its capacity by adding another RM 18 mil CAPEX for FY2011. (This CAPEX includes the expansion on strapping band as well). According to the company, capacity of stretch film will increase to 120k MT p.a. in FY2011. The expansion will help the company to aim for becoming one of the top 5 producers of stretch film where it is currently the only Asia Company in the top 10 stretch film producers among the world competitors.
· Strapping bands has a capacity of 16.2k MT p.a with 10 production lines. The company will expand its strapping band capacity to 24k MT p.a in FY2013.
· 95% of both stretch film and strapping band are exported to foreign countries.
· I’ll not cover the other packaging products as I do not think it will bring any significant changes to the top line.
Property division
· Current project in hand of RM418mil
· Pipeline projects of RM1.8mil last until 2018
· Total GDV – Completed GDV – On-going GDV = RM1.8 b.
· RM1.8b divided by on-going GDV RM418 m = 4.3 years
My View
RM '000 | |||
Manufacturing | Property | Assumption | |
Asset | 214.35 | PAT 25.16 *Ave. P/E 8.5x | |
351.37 | Remains the same | ||
Total Value | 565.72 | ||
Net Debt | 32.96 | ||
Equity Value | 532.76 | ||
Share m | 230.00 | ||
Value of Share | 2.32 | ||
Wednesday, December 15, 2010
Mamee-Double Decker (M) Berhad
Details
Share Price as at December 14, 2010: RM3.46
Distribution for FY2010 13 sen (50% dividend policy, YTD~41%)
Dividend Yield (%) 3.76%
Trailing 12-m P/E 9.61x
Average Historical P/E (2008 to present) 7.70x
Historical range of P/E (2008 to present) 5.18x – 10.40x
52 week High RM3.78
52 week Low RM1.99
Average Historical P/Book (2008 to present) 1.29
Historical range of P/Book (2008 to present) 0.74 – 2.26
Corporate Structure
Source: Company’s website
Management
• Datuk Pang Chin Hin, Chairman
• Datuk Pang Tee Chew, MD/CEO
• Datuk Pang Tee Nam, ED/COO
• Mr. Vuitton Pang, Business Development Manager
Source: Company’s website
Snapshot
• Established in 1971 as a manufacturer of dry noodle and instant vermicelli
• Listed on Main Board of Bursa Malaysia in 1992
• Malaysia’s leading manufacturer and marketer of a wide range of Food & Beverage products with 4 factories in Malaysia and 1 in Myanmar.
• Brands include Mamee Monster, Double Decker, Mister Potato Chips, Cheers, Nutrigen, Nicolet, Corntoz.
• Top market share among the snack food manufacturers in Peninsular Malaysia – approximately 31% share in February 2010.
• Actively serving more than 80 countries
• Non-core segment – oil palm plantation in Indonesia. Target to contribute to group revenue in 3 years’ time
Awards
• ISO9002
• ISO9001
• HACCP
Operational Highlights
• Launched “Rio Fiesta” orange and apple drinks to be sold in Malaysia and overseas
• Marketing support for new and existing products
• Additional warehouse in Melaka to increase capacity by 46%
• New building and machinery
Historical Financial Highlights
• Compounded Annual Growth Return over the past 5 years is 9.05%
• 9MFY2010 revenue y-o-y increased approximately 15.9% from 9MFY2009.
• Y-o-Y increasing trend of revenue seems to be maintained or better as several positive developments may act as catalyst.
• Geographically, main contributor is Malaysia followed by Australia, Singapore, Russia, Hong Kong and Netherlands based on 2009’s figure.
• Annualized PBT and Net Income margin for FY2010 are approximately 12.5% and 9.72% respectively dropped slightly from FY2009 13.48% and 10.78%.
Q-o-Q Revenue
• FY2010 quarterly revenues seem to be stable at a higher level compared with FY2008 and FY2009. Imagine the new developments start to kick in, what will be the result?
• Free cash flow remains healthy after RM10mil CAPEX in 3QFY2010
• Gearing – net cash. As at 3QFY2010, cash was 64.613m and no borrowings. However, we should consider that the new borrowings will be occur in FY2011, which is the 50% of 100mil capex.
*FY2010 figures are annualized. If new developments bring positive contribution to the top and bottom lines by FY2011, all percentage terms will not be the same. It may appear to be different from what we expected.
Risks
• Cost of raw materials increase.
• Business risk - Non-core segment – oil palm plantation. Contribution remains uncertain.
Technical Configuration
• Broke below the intermediate upward trend line in October 2010.
• Formed lower highs hinting at a short term downward trend.
• Indicators are mixed.
• Symmetrical triangle is brewing along with decreasing volume.
Reason to be positive
• Launched “Rio Fiesta” orange and apple drinks to be sold in Malaysia and overseas few weeks ago
• Additional warehouse in Melaka to increase capacity by 46%
• New building and machinery
• Top substantial shareholder remains the Pang family. Direct interest increased from approx. 61.42% as at 6 April 2010 to 63.6% recently. Position of the family may indirectly reflect how keen they are on the new developments and the company business???
• Although technical-wise I view it as neutral, all these catalysts may bring back the interest of the counter.
If 13.51x times annualized FY2010 EPS 32 sen, Mamee should price at RM4.32.
If 10.40x times annualized FY2010 EPS 32 sen, Mamee should price at RM3.32.
If 9.61x times annualized FY2010 EPS 32 sen, Mamee should price at RM3.07.
Then, I have a view that Mamee should range between RM3.07 and RM4.32.
Share Price as at December 14, 2010: RM3.46
Distribution for FY2010 13 sen (50% dividend policy, YTD~41%)
Dividend Yield (%) 3.76%
Trailing 12-m P/E 9.61x
Average Historical P/E (2008 to present) 7.70x
Historical range of P/E (2008 to present) 5.18x – 10.40x
52 week High RM3.78
52 week Low RM1.99
Average Historical P/Book (2008 to present) 1.29
Historical range of P/Book (2008 to present) 0.74 – 2.26
Corporate Structure
Source: Company’s website
Management
• Datuk Pang Chin Hin, Chairman
• Datuk Pang Tee Chew, MD/CEO
• Datuk Pang Tee Nam, ED/COO
• Mr. Vuitton Pang, Business Development Manager
Source: Company’s website
Snapshot
• Established in 1971 as a manufacturer of dry noodle and instant vermicelli
• Listed on Main Board of Bursa Malaysia in 1992
• Malaysia’s leading manufacturer and marketer of a wide range of Food & Beverage products with 4 factories in Malaysia and 1 in Myanmar.
• Brands include Mamee Monster, Double Decker, Mister Potato Chips, Cheers, Nutrigen, Nicolet, Corntoz.
• Top market share among the snack food manufacturers in Peninsular Malaysia – approximately 31% share in February 2010.
• Actively serving more than 80 countries
• Non-core segment – oil palm plantation in Indonesia. Target to contribute to group revenue in 3 years’ time
Awards
• ISO9002
• ISO9001
• HACCP
Operational Highlights
• Launched “Rio Fiesta” orange and apple drinks to be sold in Malaysia and overseas
• Marketing support for new and existing products
• Additional warehouse in Melaka to increase capacity by 46%
• New building and machinery
Historical Financial Highlights
• Compounded Annual Growth Return over the past 5 years is 9.05%
• 9MFY2010 revenue y-o-y increased approximately 15.9% from 9MFY2009.
• Y-o-Y increasing trend of revenue seems to be maintained or better as several positive developments may act as catalyst.
• Geographically, main contributor is Malaysia followed by Australia, Singapore, Russia, Hong Kong and Netherlands based on 2009’s figure.
• Annualized PBT and Net Income margin for FY2010 are approximately 12.5% and 9.72% respectively dropped slightly from FY2009 13.48% and 10.78%.
Q-o-Q Revenue
• FY2010 quarterly revenues seem to be stable at a higher level compared with FY2008 and FY2009. Imagine the new developments start to kick in, what will be the result?
• Free cash flow remains healthy after RM10mil CAPEX in 3QFY2010
• Gearing – net cash. As at 3QFY2010, cash was 64.613m and no borrowings. However, we should consider that the new borrowings will be occur in FY2011, which is the 50% of 100mil capex.
*FY2010 figures are annualized. If new developments bring positive contribution to the top and bottom lines by FY2011, all percentage terms will not be the same. It may appear to be different from what we expected.
Risks
• Cost of raw materials increase.
• Business risk - Non-core segment – oil palm plantation. Contribution remains uncertain.
Technical Configuration
• Broke below the intermediate upward trend line in October 2010.
• Formed lower highs hinting at a short term downward trend.
• Indicators are mixed.
• Symmetrical triangle is brewing along with decreasing volume.
My view is neutral on the share price until it breaks the symmetrical triangle.
Reason to be positive
• Launched “Rio Fiesta” orange and apple drinks to be sold in Malaysia and overseas few weeks ago
• Additional warehouse in Melaka to increase capacity by 46%
• New building and machinery
Increase capacity may improve volume efficiency of production by end of 2011—as well as increase top and bottom line??????
• The company announced 50% dividend payout policy in April 2010. YTD distributed dividend is about 41%. Hopefully, there will be a surprise for this coming 4Q2010. • Top substantial shareholder remains the Pang family. Direct interest increased from approx. 61.42% as at 6 April 2010 to 63.6% recently. Position of the family may indirectly reflect how keen they are on the new developments and the company business???
• Although technical-wise I view it as neutral, all these catalysts may bring back the interest of the counter.
• Mix of different market cap counters – average P/E among them = 13.51x
As MAMEE’s average volume for the last 30 days is the third largest among the companies and yet lower than LONBISC and F&N.
Majority counters are overvalued based on the comparison between price and book value per share. Thus, I personally don’t think it is applicable.
MAMEE’s historical highest P/E was 10.40x, which was above the historical trailing 12-m P/E. If 13.51x times annualized FY2010 EPS 32 sen, Mamee should price at RM4.32.
If 10.40x times annualized FY2010 EPS 32 sen, Mamee should price at RM3.32.
If 9.61x times annualized FY2010 EPS 32 sen, Mamee should price at RM3.07.
Then, I have a view that Mamee should range between RM3.07 and RM4.32.
Encouraged by all the catalysts n facts, by now, you should have your own view of how far MAMEE can go!
Cautious
I would say the market is full of uncertainty and volatile. Last few weeks, Ireland debt issue then Conflict between South and North Korea. And today, we have a news on "Spain's debt rating may be cut by Moody's amid struggle to limit contagion". for more detail, go to http://www.bloomberg.com/news/2010-12-15/spain-s-aa1-debt-rating-put-on-review-by-moody-s.html
Today, HSI dropped 455.84 points or 1.95%, STI dropped 29.71 points or 0.94% and KLCI edged 1.48 points lower.
sometimes we should look at some defensive stocks instead.
My interest
On 13 December 2010, I introduced YEELEE at RM0.905. Today it closed at RM0.955, representing 5% increase in less than 5 days. For more detail, http://scheherazadetrend.blogspot.com/2010/12/bottoms-out.html
On 14 December 2010, I introduced SCIENTEX at RM1.83. Today it closed high at RM1.89. For more detail, http://scheherazadetrend.blogspot.com/2010/12/scientex.html
Q1FY2011 result has just released today. I'll post my comments regarding the result soon.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Today, HSI dropped 455.84 points or 1.95%, STI dropped 29.71 points or 0.94% and KLCI edged 1.48 points lower.
sometimes we should look at some defensive stocks instead.
My interest
On 13 December 2010, I introduced YEELEE at RM0.905. Today it closed at RM0.955, representing 5% increase in less than 5 days. For more detail, http://scheherazadetrend.blogspot.com/2010/12/bottoms-out.html
On 14 December 2010, I introduced SCIENTEX at RM1.83. Today it closed high at RM1.89. For more detail, http://scheherazadetrend.blogspot.com/2010/12/scientex.html
Q1FY2011 result has just released today. I'll post my comments regarding the result soon.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Tuesday, December 14, 2010
SCIENTEX
Details
Share Price as at December 13, 2010: RM1.83
Distribution for FY2010 9 sen (performance-based dividend policy)
Dividend Yield (%) 4.91%
Trailing 12-m P/E 6.54x
Average Historical P/E (2005 to present) 6.56x
Historical range of P/E (2005 to present) 3.91x - 9.33x
52 week High RM1.96
52 week Low RM1.26
Average Historical P/Book (2005 to present) 1.17
Historical range of P/Book (2005 to present) 0.69 – 1.91
Board of Directors
• Tan Sri Dato’ Mohd Sheriff bin Mohd Kassim Chairman & Ind. Non-Executive Director
(He also sits on the Board of PLUS, PROPEL, Standard Chartered, MANULFE and Yayasan UEM.)
• Lim Teck Meng Executive Deputy Chairman
• Lim Peng Jin MD
• Lim Peng Cheong Non-Ind. Non- Executive Director
• Fok Chuan Meng Non-Ind. Non- Executive Director
• Wong Mook Weng Ind. Non-Executive Director
• Cham Chean Fong Ind. Non-Executive Director
• Dato’ Hazimah Binti Zainuddin Ind. Non-Executive Director
• Teow Her Kok Ind. Non-Executive Director
Corporate Structure
(Source: company's website)
Snapshot
• Scientex was incorporated in Malaysia under the Companies Act, 1965 as Scientific Textiles Industries Sdn. Bhd. to manufacture and market polyvinylchloride (PVC) leather cloth and sheetings.
• Scientex was listed on the Main Market in 1990.
• Scientex has a market capitalisation of more than MYR400 million and a total combined assets of approximately MYR600 million. For the financial year ended 2010, Scientex achieved a revenue exceeding MYR650 million.
• Core businesses are manufacturing and property development.
• Its manufacturing division comprises of two business units namely packaging and polymer.
• The packaging business unit produces various packaging products designed for outer, middle and inner packaging applications:-
• Outer packaging – stretch film, stretch hood, PP strapping band and HDPE tying tape.
• Middle packaging – woven bags, bulk bags (FIBC) and corrugated carton boxss.
• Inner packaging – adhesives, lamination film and PVC rigid film.
(Source: company's website)
Awards
ISO 9001 : 2000
• 1997 --Woventex Sdn Bhd
• 2002 --Scientex Packaging Film Sdn Bhd
• 2005 --Cosmo Scientex (M) Sdn Bhd
• 2007 --Scientex Containers Sdn Bhd
• 2008 --Pan Pacific Straptex Sdn Bhd
ISO 14001 : 2004
• 2005 --Scientex Packaging Film Sdn Bhd
• 2007 --Scientex Containers Sdn Bhd
• 2007 --Cosmo Scientex (M) Sdn Bhd
ISO TS 16949 : 2002
• 2008 --Scientex Polymer Sdn Bhd
ISO 9001:2008
• 2009 --K.C. Contract Sdn Bhd
Operational Highlights as at July 2010
Manufacturing
Scientex Packaging Film S/B – 100k MT p.a
Pan Pacific Straptex S/B – 16.2k MT p.a
Scientex Tsukasa (Vietnam) Co. Ltd – 3.6k MT p.a
Scientex Indusries Group S/B – 4.8k MT p.a
Property
Kulai - Landbank of 250 acres which located within the Secondary Promotion area of Iskandar Malaysia. It comprises 4,000 units of mixed development properties.
Pasir Gudang – Landbank of 1,100 acres which located within the East Growth Corridor of Iskandar Malaysia. It comprises 12,000 residential and 520 commercial properties when fully completed. Up-to-date, more than 5,000 residential and 143 commercial and industrial units completed.
Skudai - Landbank of 146 acres which located within the Primary development area of Iskandar Malaysia. It comprises 1,995 units of mixed development of properties.
Taman Muzaffar Heights - Landbank of 170 acres which located in Air Keroh.
Historical Financial Highlights
• Compounded Annual Growth Return over the past 10 years is 15.24%
• Turnover overall increased 36% in FYE2010 from FYE2009.
• Manufacturing division increased by 27% and Property development division increased by 84%.
• Geographically, the company seems to have changed its strategy. Instead of focusing only on Malaysia, it has managed to increase the revenue largely from Japan and also has expanded to other markets such as Australia. The revenue breakdown for FYE2010 were Malaysia 38.8%, Japan 38.3%, Australia 7.4%, Indonesia 4.4%, Vietnam 0.2% and others 10.9%.
• Net income margin is on an upward trend. For FYE2010, it has improved from 7.35% to 8.68%.
• ROE improved from 9.99% to 14.56%.
• EPS surged 65% from FYE2009 17 sen to FYE2010 28 sen.
• Free cash flow remains healthy.
Quarterly Net Income
Quarterly Revenue
Keys:
• Revenue up, Net Income up, Net income margin up, ROE up, EPS up, CFO up (since FYE2007), retained earnings up (since FYE2007). What do all these info infer about?
Technical Configuration - lagging
• Descending triangle, awaiting for either bullish or bearish breakout
• Indicators are mixed – hard to determine the next move.
• Illiquid, hard to trade
• Intermediate trend - upward trend
Suggestion: plz follow the Upcoming 1st Quarter result for year 2011.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Share Price as at December 13, 2010: RM1.83
Distribution for FY2010 9 sen (performance-based dividend policy)
Dividend Yield (%) 4.91%
Trailing 12-m P/E 6.54x
Average Historical P/E (2005 to present) 6.56x
Historical range of P/E (2005 to present) 3.91x - 9.33x
52 week High RM1.96
52 week Low RM1.26
Average Historical P/Book (2005 to present) 1.17
Historical range of P/Book (2005 to present) 0.69 – 1.91
Board of Directors
• Tan Sri Dato’ Mohd Sheriff bin Mohd Kassim Chairman & Ind. Non-Executive Director
(He also sits on the Board of PLUS, PROPEL, Standard Chartered, MANULFE and Yayasan UEM.)
• Lim Teck Meng Executive Deputy Chairman
• Lim Peng Jin MD
• Lim Peng Cheong Non-Ind. Non- Executive Director
• Fok Chuan Meng Non-Ind. Non- Executive Director
• Wong Mook Weng Ind. Non-Executive Director
• Cham Chean Fong Ind. Non-Executive Director
• Dato’ Hazimah Binti Zainuddin Ind. Non-Executive Director
• Teow Her Kok Ind. Non-Executive Director
Corporate Structure
(Source: company's website)
Snapshot
• Scientex was incorporated in Malaysia under the Companies Act, 1965 as Scientific Textiles Industries Sdn. Bhd. to manufacture and market polyvinylchloride (PVC) leather cloth and sheetings.
• Scientex was listed on the Main Market in 1990.
• Scientex has a market capitalisation of more than MYR400 million and a total combined assets of approximately MYR600 million. For the financial year ended 2010, Scientex achieved a revenue exceeding MYR650 million.
• Core businesses are manufacturing and property development.
• Its manufacturing division comprises of two business units namely packaging and polymer.
• The packaging business unit produces various packaging products designed for outer, middle and inner packaging applications:-
• Outer packaging – stretch film, stretch hood, PP strapping band and HDPE tying tape.
• Middle packaging – woven bags, bulk bags (FIBC) and corrugated carton boxss.
• Inner packaging – adhesives, lamination film and PVC rigid film.
(Source: company's website)
Awards
ISO 9001 : 2000
• 1997 --Woventex Sdn Bhd
• 2002 --Scientex Packaging Film Sdn Bhd
• 2005 --Cosmo Scientex (M) Sdn Bhd
• 2007 --Scientex Containers Sdn Bhd
• 2008 --Pan Pacific Straptex Sdn Bhd
ISO 14001 : 2004
• 2005 --Scientex Packaging Film Sdn Bhd
• 2007 --Scientex Containers Sdn Bhd
• 2007 --Cosmo Scientex (M) Sdn Bhd
ISO TS 16949 : 2002
• 2008 --Scientex Polymer Sdn Bhd
ISO 9001:2008
• 2009 --K.C. Contract Sdn Bhd
Operational Highlights as at July 2010
Manufacturing
Scientex Packaging Film S/B – 100k MT p.a
Pan Pacific Straptex S/B – 16.2k MT p.a
Scientex Tsukasa (Vietnam) Co. Ltd – 3.6k MT p.a
Scientex Indusries Group S/B – 4.8k MT p.a
Property
Kulai - Landbank of 250 acres which located within the Secondary Promotion area of Iskandar Malaysia. It comprises 4,000 units of mixed development properties.
Pasir Gudang – Landbank of 1,100 acres which located within the East Growth Corridor of Iskandar Malaysia. It comprises 12,000 residential and 520 commercial properties when fully completed. Up-to-date, more than 5,000 residential and 143 commercial and industrial units completed.
Skudai - Landbank of 146 acres which located within the Primary development area of Iskandar Malaysia. It comprises 1,995 units of mixed development of properties.
Taman Muzaffar Heights - Landbank of 170 acres which located in Air Keroh.
Historical Financial Highlights
• Compounded Annual Growth Return over the past 10 years is 15.24%
• Turnover overall increased 36% in FYE2010 from FYE2009.
• Manufacturing division increased by 27% and Property development division increased by 84%.
• Geographically, the company seems to have changed its strategy. Instead of focusing only on Malaysia, it has managed to increase the revenue largely from Japan and also has expanded to other markets such as Australia. The revenue breakdown for FYE2010 were Malaysia 38.8%, Japan 38.3%, Australia 7.4%, Indonesia 4.4%, Vietnam 0.2% and others 10.9%.
• Net income margin is on an upward trend. For FYE2010, it has improved from 7.35% to 8.68%.
• ROE improved from 9.99% to 14.56%.
• EPS surged 65% from FYE2009 17 sen to FYE2010 28 sen.
• Free cash flow remains healthy.
Keys:
• Revenue up, Net Income up, Net income margin up, ROE up, EPS up, CFO up (since FYE2007), retained earnings up (since FYE2007). What do all these info infer about?
Technical Configuration - lagging
• Descending triangle, awaiting for either bullish or bearish breakout
• Indicators are mixed – hard to determine the next move.
• Illiquid, hard to trade
• Intermediate trend - upward trend
My view
SCIENTEX’s trailing 12-m P/E (6.54x) has reached the average figure (6.56x). Book value per share is 1.95.
Close | BV per share | P/E | Div. Yield | |
BPPLAS | 0.80 | 0.73 | 6.62 | 5 |
DAIBOCI | 2.42 | 1.65 | 8.04 | 6 |
BRIGHT | 0.29 | 0.46 | 10.89 | 0 |
Compared with its peers, the company seems to be undervalued.
Daiboci has higher share price but lower book value per share but it is trading at 8.04x P/E.
Although BPPLAS and BRIGHT have lower share price and book value per share, they are trading at higher P/E, which are at 6.62x and 10.89x respectively.
As such, I think SCIENTEX should deserve higher P/E as well. The average P/E among the 3 peers is 8.52x.
If the company trades at 8.52x, it should worth RM2.38, representing 30% increase.
If the company trades at 7.67x (10% discount), it should worth RM2.14, representing 17% increase.
If the company trades at 6.82x (20% discount), it should worth RM1.91, representing 4.4% increase.
Discount should be applied as the counter has low volume and our observation of lagging share price.
Suggestion: plz follow the Upcoming 1st Quarter result for year 2011.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Monday, December 13, 2010
Bottoms out???
Yee Lee Corporation Bhd
(YEELEE,5584)
Share Price as at December 13, 2010: RM0.905
Distribution for FY2010 0.0178 sen
Dividend Yield (%) 1.97%
Trailing 12-m P/E 7.31x
Average Historical P/E (2009 to present) 6.02x
Historical range of P/E (2009 to present) 3.53x – 10.49x
52 week High RM1.33
52 week Low RM0.47
P/Book RM0.73
Average Historical P/Book (2009 to present) 0.56
Historical range of P/Book (2009 to present) 0.34 – 1.00
• Exited from the downward channel, which started in July 2010.
• Found support above the upper boundary of the downward channel.
• Share price seems to gather momentum above RM0.84.
• Daily MACD is poised for positive crossover and yet to penetrate the zero line.
• RSI rebounded back to 50-level, currently heading upwards.
• DMI is in the midst of staging bullish crossover.
• A break below RM0.84 may hint for the extension of the bear trend
• Confirmation of the RM0.84 support and break above RM0.96 may indicate the end of the correction.
• Next resistance can be found between RM1.18 and RM1.32.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
(YEELEE,5584)
Share Price as at December 13, 2010: RM0.905
Distribution for FY2010 0.0178 sen
Dividend Yield (%) 1.97%
Trailing 12-m P/E 7.31x
Average Historical P/E (2009 to present) 6.02x
Historical range of P/E (2009 to present) 3.53x – 10.49x
52 week High RM1.33
52 week Low RM0.47
P/Book RM0.73
Average Historical P/Book (2009 to present) 0.56
Historical range of P/Book (2009 to present) 0.34 – 1.00
• Exited from the downward channel, which started in July 2010.
• Found support above the upper boundary of the downward channel.
• Share price seems to gather momentum above RM0.84.
• Daily MACD is poised for positive crossover and yet to penetrate the zero line.
• RSI rebounded back to 50-level, currently heading upwards.
• DMI is in the midst of staging bullish crossover.
• A break below RM0.84 may hint for the extension of the bear trend
• Confirmation of the RM0.84 support and break above RM0.96 may indicate the end of the correction.
• Next resistance can be found between RM1.18 and RM1.32.
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
Monday, December 6, 2010
"Durable" Company?
Simple Charting
DRBHCOM’s share price has been on a gradual rise since May 2010 along with the return of volume.
Chart wise, bullish mode remains intact as it penetrated the critical resistance at RM1.32, which has failed for several times. Daily RSI is getting closer to overbought level. I think it may break the next resistance today and subsequently may enter a minor pullback until it finds the next support. Next resistance is at RM1.60-RM1.80. Support is at RM1.32.
Simple Maths
Among the automobile related stocks as mentioned above, DRBHCOM is trading at trailing P/E 4.21x which is below the others. In addition to its current dividend yield of 2.80%, Do you find it attractive?
Let say
If RM1.60, P/E 4.71x
If RM1.80, P/E 5.29x
If RM2.00, P/E 5.88x
Based on the resistance range, P/E lies between the range of 4.71x and 5.29x, which is still below the others except SAPIND.
And now, What do you think?
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
DRBHCOM’s share price has been on a gradual rise since May 2010 along with the return of volume.
Chart wise, bullish mode remains intact as it penetrated the critical resistance at RM1.32, which has failed for several times. Daily RSI is getting closer to overbought level. I think it may break the next resistance today and subsequently may enter a minor pullback until it finds the next support. Next resistance is at RM1.60-RM1.80. Support is at RM1.32.
Simple Maths
Stock Code | Trailing 12 months EPS | Last Price | Trailing P/E |
DRBHCOM | 34 | 1.43 | 4.21x |
SAPIND | 26 | 1.16 | 4.46x |
YOKOHAMA | 11 | 0.705 | 6.41x |
NHFATT | 30 | 2.26 | 7.53x |
APM | 61 | 5.20 | 8.52x |
PROTON | 46 | 4.88 | 10.61x |
UMW | 53 | 6.91 | 13.04x |
TCHONG | 34 | 5.46 | 16.06x |
Among the automobile related stocks as mentioned above, DRBHCOM is trading at trailing P/E 4.21x which is below the others. In addition to its current dividend yield of 2.80%, Do you find it attractive?
Let say
If RM1.60, P/E 4.71x
If RM1.80, P/E 5.29x
If RM2.00, P/E 5.88x
Based on the resistance range, P/E lies between the range of 4.71x and 5.29x, which is still below the others except SAPIND.
And now, What do you think?
Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
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