Dutch Lady Milk Industries Berhad

Date announced 29/11/2010
Quarter 30/9/2010 Qtr 3 FYE 31/12/2010

STOCK DLADY C0DE 3026

Price $ 17.9 Curr. PE (ttm-Eps) 16.58 Curr. DY 3.67%
LFY Div 65.63 DPO ratio 70%
ROE 33.0% PBT Margin 10.9% PAT Margin 7.1%

Rec. qRev 186715 q-q % chg -1% y-y% chq 5%
Rec qPbt 20332 q-q % chg -20% y-y% chq -25%
Rec. qEps 20.82 q-q % chg -30% y-y% chq -34%
ttm-Eps 107.98 q-q % chg -9% y-y% chq 19%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 16.00 Avg. L PE 14.00
Forecast High Pr 22.05 Forecast Low Pr 11.86 Recent Severe Low Pr 11.86

Current price is at Middle 1/3 of valuation zone.
RISK: Upside 41% Downside 59%
One Year Appreciation Potential 5% Avg. yield 5%
Avg. Total Annual Potential Return (over next 5 years) 10%

CPE/SPE 1.11 P/NTA 5.47 NTA 3.27 SPE 15.00 Rational Pr 16.20


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


Stock Data: Recent Stock Performance:
Current Price (11/19/2010): 17.88
(Figures in Malaysian Ringgits)
1 Week 0.7% 13 Weeks -1.4%
4 Weeks 22.1% 52 Weeks 54.1%

Dutch Lady Milk Industries Berhad Key Data:
Ticker: DBMS Country: MALAYSIA
Exchanges: KUL Major Industry: Food & Beverages
Sub Industry: Dairy Products

2009 Sales 691,847,000
(Year Ending Jan 2010).
Employees: 570

Currency: Malaysian Ringgits Market Cap: 1,144,320,000
Fiscal Yr Ends: December Shares Outstanding: 64,000,000
Share Type: Ordinary Closely Held Shares: 46,418,300


Day's Range: 17.60 - 17.90
52wk Range: 11.30 - 20.10
Volume: 3,600