Ajinomoto

Date announced 27/08/2010
Quarter 31/06/2010 Qtr 1 FYE 31/03/2011

STOCK Ajinomoto C0DE 2658

Price $ 4.19 Curr. ttm-PE 9.95 Curr. DY 4.30%
LFY Div 18.00 DPO ratio 46%
ROE 12.1% PBT Margin 13.9% PAT Margin 10.5%

Rec. qRev 82127 q-q % chg 14% y-y% chq 15%
Rec qPbt 11439 q-q % chg 470% y-y% chq 29%
Rec. qEps 14.19 q-q % chg 482% y-y% chq 24%
ttm-Eps 42.10 q-q % chg 7% y-y% chq 29%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 10.00 Avg. L PE 6.00
Forecast High Pr 5.37 Forecast Low Pr 3.18 Recent Severe Low Pr 3.18
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 54% Downside 46%
One Year Appreciation Potential 6% Avg. yield 6%
Avg. Total Annual Potential Return (over next 5 years) 12%

CPE/SPE 1.24 P/NTA 1.20 NTA 3.49 SPE 8.00 Rational Pr 3.37



Decision:
Already Owned: Buy, Hold, Sell, Filed; Review (future acq): Filed; Discard: Filed.
Guide: Valuation zones - Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr