Poh Kong

Date announced 28/09/2010
Quarter 31/07/2010 Qtr 4 FYE 31/07/2010

STOCK POHKONG C0DE  5080 

Price $ 0.485 Curr. PE (ttm-Eps) 6.29 Curr. DY 2.89%
LFY Div 1.40 DPO ratio 18%
ROE 10.3% PBT Margin 7.3% PAT Margin 5.9%

Rec. qRev 131906 q-q % chg -1% y-y% chq 6%
Rec qPbt 9609 q-q % chg -1% y-y% chq -18%
Rec. qEps 1.90 q-q % chg 20% y-y% chq -15%
ttm-Eps 7.71 q-q % chg -4% y-y% chq 11%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 6.00 Avg. L PE 5.20
Forecast High Pr 0.59 Forecast Low Pr 0.41 Recent Severe Low Pr 0.41
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 58% Downside 42%
One Year Appreciation Potential 4% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 8%

CPE/SPE 1.12 P/NTA 0.65 NTA 0.75 SPE 5.60 Rational Pr 0.43



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