myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.

Wednesday 30 November 2011

KPJ Healthcare Berhad

Company Name	:	KPJ HEALTHCARE BERHAD
Stock Name	:	KPJ
Date Announced	:	29/11/2011

Financial Year End	:	31/12/2011
Quarter	:	3
Quarterly report for the financial period ended	:	30/09/2011
The figures	:	have not been audited

Converted attachment :

Please attach the full Quarterly Report here:


Currency	:	Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION

30/09/2011

		INDIVIDUAL PERIOD		CUMULATIVE PERIOD
		CURRENT YEAR QUARTER	PRECEDING YEAR CORRESPONDING QUARTER	CURRENT YEAR TO DATE	PRECEDING YEAR CORRESPONDING PERIOD
		30/09/2011	30/09/2010	30/09/2011	30/09/2010
		$$'000	$$'000	$$'000	$$'000
1	Revenue	476,025	436,484	1,384,671	1,222,768
2	Profit/(loss) before tax	47,903	43,111	134,681	122,457
3	Profit/(loss) for the period	36,753	33,259	102,129	93,098
4	Profit/(loss) attributable to ordinary equity holders of the parent	34,494	30,229	92,164	86,639
5	Basic earnings/(loss) per share (Subunit)	5.66	5.65	16.89	16.20
6	Proposed/Declared dividend per share (Subunit)	2.50	3.25	9.90	6.50

		AS AT END OF CURRENT QUARTER		AS AT PRECEDING FINANCIAL YEAR END
7	Net assets per share attributable to ordinary equity holders of the parent ($$)	1.6400		1.5400

Remarks :

Market Watch

Recent Financial Results

Announcement Date	Financial Yr. End	Qtr	Period End	Revenue RM '000	Profit/Lost RM'000	EPS	Amended
29-Nov-11	31-Dec-11	3	30-Sep-11	476,025	36,753	5.66	-
19-Aug-11	31-Dec-11	2	30-Jun-11	470,898	34,061	5.70	-
20-May-11	31-Dec-11	1	31-Mar-11	437,748	31,315	5.09	-
01-Mar-11	31-Dec-10	4	31-Dec-10	433,434	34,420	5.56	-

ttm-EPS 22.01 sen
Price RM 4.18
Trailing PE 19x

Share Price Performance

	High		Low
Prices 1 Month	4.280	(21-Nov-11)	4.010	(10-Nov-11)
Prices 3 Months	4.440	(02-Sep-11)	3.760	(26-Sep-11)
Prices 12 Months	4.720	(22-Jun-11)	3.670	(20-Dec-10)
Volume 12 Months	44,868	(08-Aug-11)	70	(28-Nov-11)

23.11.2011

Price RM 4.190

PE 18.52x

DY 3.2%

Market cap RM 2433.9m

9 months ending 30.9.2011

Income statement

Revenue 1,384.671m
Gross profit 416.378m
Profit from operations 133.118m
Profit from ordinary activities before zakat and tax 134.681m
Profit after zakat and tax 102.129m

Finance cost (15.285m)
Share of results of associated companies 16.848m

Zakat (0.952m)
Income tax expense (31.600m)

EPS
Basic 16.89 sen
Diluted 15.02 sen

Dividend
DPS 9.90 sen

Balance Sheet

NCA 1,070.637m
CA 656.696m
TOTAL ASSETS 1,727.333m

TOTAL EQUITY 950.333m
NCL 338.723m
CL 438.277m
TOTAL LIABILITIES 777.000
TOTAL EQUITY AND LIABILITIES 1,727.333m

Net assets per share attributable to ordinary
equity holders of the parent RM 1.64

Inventories 44.348m
Receivables, deposits and prepayments 295.118m
Payables 243.929m

Deposit, cash and bank balances 219.446m
LT Borrowings 283.865m
ST Borrowings 122.653m

Total equity attributable to shareholders of company 845.627m
Minority interest 104.706m

Cash flow statement

Profit for the financial year attributable to
equity holders of the Company 92.164m
Operating profit before changes in working capital 184.571
Cash from operations after changes in working capital 125.851m

Net cash from operating activities 90.094m
Net cash used in investing activities (63.760m)
Net cash used in financing activities (4.006m)

PPE depreciation 52.558m
Purchase of PPE (70.820m)
Proceeds from disposal of PPE 40.040m
Additional investment in subsidiary and associates company (32.980m)

Issuance of shares - exercise of share warrants 31.933m

Dividend paid to shareholders
30.09.2011 (48.784m)
30.09.2010 (26.451m)

Notes:

VALUATIONS OF PROPERTY, PLANT AND EQUIPMENT

The freehold land, long leasehold land and buildings were revalued by the Directors on 31 December 2010 based on open market valuations carried out by an independent firm of professional valuers, CH Williams, Talhar & Wong of 3228, Menara Tun Razak, Jalan Raja Laut, 50768 Kuala Lumpur to reflect market value for existing use. The valuations made are in compliance with the Group policy to revalue freehold land, long leasehold land and building once in every 5 years.

The valuations of property, plant and equipment have been brought forward without amendment from the last audited financial statement for the year ended 31 December 2010.

CURRENT YEAR PROSPECTS
Based on the positive performance for the current financial period, the Board of Directors is confident that the Group will achieve better performance in comparison to the previous year.

SHARES

Weighted average number of ordinary shares in issue 545.717m

Adjusted weighted average number of ordinary shares in issue and issuable 613.488m

KPJ Healthcare Berhad Company Snapshot
Business Description:
KPJ Healthcare Berhad operates in the Specialty hospitals exc. psychiatric sector. KPJ Healthcare Berhad is engaged in investment holding and provision of management services to subsidiary companies. The Company operates specialist hospitals. Its support services consist of provision of management services and pathology and laboratory services, marketing and distribution of pharmaceutical, medical and surgical products and operating a private nursing college. As of December 31, 2010, it operated more than 20 hospitals in Malaysia and two in Indonesia. During the year ended December 31, 2010, two new hospitals, namely Rumah Sakit Bumi Serpong Damai in Jakarta, Indonesia and the KPJ Tawakkal Specialist Hospital in Kuala Lumpur commenced operations. On June 25, 2010, it acquired 51% interest in Sabah Medical Centre (SMC). On September 23, 2010, it completed the acquisition of a 51% interest in Jeta Gardens Waterford Trust (JGWT). On January 18, 2011, it acquired Sibu Medical Centre Corporation Sdn Bhd (SMCC) and Sibu geriatric Health & nursing Centre Sdn Bhd (SgHnC).

Stock Data: Recent Stock Performance:

Current Price (11/25/2011): 4.18
(Figures in Malaysian Ringgits)
1 Week -1.9% 13 Weeks -1.2%

4 Weeks -3.5% 52 Weeks 12.1%

Market Cap: 2,370,018,200
Shares Outstanding: 566,990,000
Closely Held Shares: 6,105,500

Stock Performance Chart for KPJ Healthcare Berhad

Stock Performance Chart for KPJ Healthcare Berhad

No comments:

My 18 points guide to Successfully compounding your money in Stocks

Be a good stock picker.
Think as a business owner.
Always look at value rather than the price. Do the homework.
Buy and hold is alright for selected stocks.
Compounding is your friend, get this to work its magic.
Mr. Market is there to be taken advantage of. Do not be the sucker instead. BFS;STS.
Always buy a lot when the price is low.
Never buy when the stock is overpriced.
It is alright to buy when the selected stock is at a fair price.
Phasing in or dollar cost averaging is safe for such stocks during a downtrend, unless the price is still obviously too high.
Do not time the market for such or any stocks.
By keeping to the above strategy, the returns will be delivered through the growth of the company's business.
So, when do you sell the stock? Almost never, as long as the fundamentals remain sound and the future prospects intact.
The downside risk is protected through only buying when the price is low or fairly priced.
Tactical dynamic asset allocation or rebalancing based on valuation can be employed but this sounds easier than is practical, except in extreme market situations.
Sell urgently when the company business fundamental has deteriorated irreversibly.
You may also wish to sell should the growth of the company has obviously slowed and you can reinvest into another company with greater growth potential of similar quality. However, unlike point 16, you can do so leisurely.
In conclusion, a critical key to successful investing is in your stock picking ability.

http://myinvestingnotes.blogspot.com/2012/07/my-18-points-guide-to-successfully.html

11 Lessons From Peter Lynch

Peter Lynch taught me:

1. Behind every stock is a company. Find out what it’s doing.
2. Never invest in any idea you can’t illustrate with a crayon.
3. Over the short term, there may be no correlation between the success of a company’s operations and the success of its stock. Over the long term, there’s a 100% correlation.
4. Buying stocks without studying the companies is the same as playing poker – and never looking at your cards.
5. Time is on your side when you own shares of superior companies.
6. Owning stock is like having children. Don’t get involved with more than you can handle.
7. When the insiders are buying, it’s a good sign.
8. Unless you’re a short seller, it never pays to be pessimistic.
9. A stock market decline is as predictable as a January blizzard in Colorado. If you’re prepared, it can’t hurt you.
10. Everyone has the brainpower to make money in stocks. Not everyone has the stomach.
11. Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening to the companies in which you’ve invested.

Lynch’s advice had a profound effect on my stock market approach. He taught me that investment success isn’t the result of developing the right macro-economic view or deciding when to jump in or out of the market. Success is about researching companies to identify those that are likely to report positive surprises.

Capital Expenditure

A great company with a Durable Competitive Advantage will have a ratio of Capital Expenditures to Net Income of less than 25%. Less is better.

Capital Expenditures are expenses on:
- fixed assets such as equipment, property, or industrial buildings
- fixing problems with an asset
- preparing an asset to be used in business
- restoring property
- starting new businesses

A good company will have a ratio of Capital Expenditures to Net Income of less than 50%.

A great company with a Durable Competitive Advantage will have a ratio of less than 25%.

Less is better.

Benjamin Graham's 113 Wise Words

The true investor scarcely ever is forced to sell his shares, and at all times he is free to disregard the current price quotation. He need pay attention to it and act upon it only to the extent that it suits his book, and no more. Thus the investor who permits himself to be stampeded or unduly worried by unjustified market declines in his holdings is perversely transforming his basic advantage into a basic disadvantage. That man would be better off if his stocks had no market quotation at all, for he would then be spared the mental anguish caused him by other persons' mistakes of judgement."

Philip Fisher's Wise Words

"The refusal to sell at a loss, while completely natural and normal, is probably one of the most dangerous in which we can indulge ourselves in the entire investment process.

More money has probably been lost by investors holding a stock they really did not want until they could 'at least come out even' than from any other single reason. If to these actual losses are added the profits that might have been made through the proper reinvestment of these funds if such reinvestment had been made when the mistake was first realized, the cost of self-indulgence becomes truly tremendous."

(Common Stocks and Uncommon Profits)

The Ultimate Hold-versus-Sell Test

Here is the overriding primary test, followed by observations on why it is so critically important:

Knowing all that you now know and expect about the company and its stock (not what you originally believed or hoped at time of purchase), and assuming that you had available capital, and assuming that it would not cause a portfolio imbalance to do so, would you buy this stock today, at today's price?

No equivocation. Yes or no?

Answers such as maybe or probably are not acceptable since they are ways of dodging the issue. No investor probably buys a stock; they either place an order or do not.

Here is the implication of your answer to that critical test: if you did not answer with a clear affirmative, you should sell; only if you said a strong yes, are you justified to hold.

Some thoughts on Analysing Stocks (KISS)

Ideally a stock you plan to purchase should have all of the following charateristics:

• A rising trend of earnings dividends and book value per share.
• A balance sheet with less debt than other companies in its particular industry.
• A P/E ratio no higher than average.
• A dividend yield that suits your particular needs.
• A below-average dividend pay-out ratio.
• A history of earnings and dividends not pockmarked by erratic ups and downs.
• Companies whose ROE is 15 or better.
• A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.

Margin of Safety Concept: Stocks should be bought like groceries, not like perfume

The high CAGR in the early years of the investing period, due to buying at a discount, tended to decline and approach that of the intrinsic EPS GR of the companies over a longer investment time-frame.

Chapter 20 - “Margin of Safety” as the Central Concept of Investment

A single quote by Graham on page 516 struck me:

Observation over many years has taught us that the chief losses to investors come from the purchase of low-quality securities at times of favorable business conditions.

Basically, Graham is saying that most stock investors lose money because they invest in companies that seem good at a particular point in time, but are lacking the fundamentals of a long-lasting stable company.

This seems obvious on the surface, but it’s actually a great argument for thinking more carefully about your individual stock investments. If most of your losses come from buying companies that seem healthy but really aren’t, isn’t that a profound argument for carefully studying any company you might invest in?

myinvestingnotes.blogspot.my (Bullbear Buffett Stock Investing Notes)

Wednesday 30 November 2011

KPJ Healthcare Berhad

Market Watch

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All equity security investments present a risk of loss of capital

The Ultimate Hold-versus-Sell Test

Some thoughts on Analysing Stocks (KISS)

Benjamin Graham

Sell the losers, let the winners run.

Investment Style

Warren Buffett

Political and Economic News

Interesting Blogs