AJINOMOTO at a glance

 

Ajinomoto - Return on Retained Earnings

Ajinomoto
Year		DPS		EPS		Retained EPS
2002		5.3		17	a	11.7
2003		6.5		19.9		13.4
2004		7.9		21.6		13.7
2005		7.9		14.6		6.7
2006		7.9		9.9		2
2007		8.9		24.7		15.8
2008		12.9		34.4		21.5
2009		15		31.2		16.2
2010		15.8		36.6		20.8
2011		17.3		42.6	b	25.3
2012
Total		105.4	c	252.5	d	147.1	e
From	2002	to	2011
EPS increase (sen)			b-a	25.6
DPO			c/d	42%
Return on retained earnings			(b-a)/e	17%
(Figures are in sens)

Investor's Checklist: Consumer Goods

Find companies that enjoy the cost advantages of manufacturing on a larger scale than most other competitors.  One related issue is whether the firm holds dominant market share in its categories.

Look for the firms that consistently launch successful new products - all the better if the firm is first to market with these innovations.

Check to see if the company is supporting its brand with consistent advertising.  If the firm constantly promotes its products with sale prices, it's depleting brand equity and just milking the brand for shorter-term gain.

Examine how well the firm is handling operating costs.  Occasional restructuring can help squeeze out efficiency gains and lower costs, but if the firm is regularly incurring restructuring costs and relying solely on this cost-cutting tactic to boost its business, tread carefully.

Because these mature firms generate so much free cash flow, it's important to make sure management is using it wisely.  How much of the cash is turned over to shareholders in the form of dividends or share repurchase agreements?

Keep in mind that investors may bid up a consumer goods stock during economic downturns, making the shares pricey relative to its fair value.  Look for buying opportunities when shares trade with a 20 percent to 30 percent margin of safety.  

Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey



Read also:
Investor's Checklist: A Guided Tour of the Market...

Ajinomoto (Malaysia) Berhad

Market Watch
Recent Financial Results

Announcement
Date Financial Yr. End Qtr Period End Revenue   Profit/Lost EPS Amended
RM '000

23-Nov-10 31-Mar-11 2 30-Sep-10 77,686 5,378 8.85 -
27-Aug-10 31-Mar-11 1 30-Jun-10 82,127 8,630 14.19 -
25-May-10 31-Mar-10 4 31-Mar-10 71,877 1,482 2.44 -
10-Feb-10 31-Mar-10 3 31-Dec-09 72,661 9,525 15.67 -

Pr 4.08 (7.1.2011)
Outstanding shares 60.80m
Market cap 248.064m

ttm-EPS 41.15 sen
ttm-PE 9.91
DY % 4.41

Past Years Data
FYE

March 04 Revenue 164.126m Earnings 12.059m EPS 19.83 sen Div 9.0 sen
March 05 Revenue 166.869m Earnings 12.519m EPS 20.59 sen Div 9.00 sen
March 06  Revenue 170.59m Earnings  6.31m  EPS 9.9 sen Div 7.9 sen

March 07  Revenue 190.63m Earnings 14.99m EPS 24.7 sen Div 8.9 sen
March 08  Revenue 215.46m Earnings 20.94 EPS 34.4 sen Div 12.9 sen
March 09 Revenue 243.84m Earnings 19.07m EPS 31.2 sen Div 15.0 sen
March 10 Revenue 284.62m Earnings 23.94m EPS 36.6 sen Div 18 sen

H1 2011 Revenue 159.813 Earnings 14.008m EPS 23.04 sen

A look at the historical ttm-EPS and ttm-PE of Ajinomoto:
https://spreadsheets.google.com/pub?key=0AuRRzs61sKqRdFlaMjJCbnFlZUZETUc5YmQzRDdRbUE&hl=en&output=html

Ajinomoto (Malaysia) Berhad
Business Description:
Ajinomoto (Malaysia) Berhad is engaged in the manufacturing and selling of monosodium glutamate and other related products.

Its retail products include AJI-NO-MOTO MSG, TUMIX stock seasoning powder, VONO cup soup, SERI-AJI ready to cook seasoning powder, AJI-SHIO flavored pepper, black pepper and iodized salt, PAL SWEET low calorie sweetener, Slim Up and AJI MIX seasoning.

Its other industrial products include HVP, AJI-AROMA, AJI-PLUS and AJIMATE.

The Company markets its products in Malaysia, the Middle East and in other Asian countries.

Ajinomoto

Date announced 23/11/2020
Quarter 30/09/2010 Qtr 2 FYE 31/03/2011

STOCK Ajinomoto C0DE 2658

Price $ 4.22 Curr. ttm-PE 10.26 Curr. DY 4.27%
LFY Div 18.00 DPO ratio 46%
ROE 12.0% PBT Margin 9.2% PAT Margin 6.9%

Rec. qRev 77686 q-q % chg -5% y-y% chq 13%
Rec qPbt 7129 q-q % chg -38% y-y% chq -6%
Rec. qEps 8.85 q-q % chg -38% y-y% chq -10%
ttm-Eps 41.15 q-q % chg -2% y-y% chq 23%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 10.00 Avg. L PE 6.00
Forecast High Pr 5.25 Forecast Low Pr 3.29 Recent Severe Low Pr 3.29
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 53% Downside 47%
One Year Appreciation Potential 5% Avg. yield 6%
Avg. Total Annual Potential Return (over next 5 years) 11%

CPE/SPE 1.28 P/NTA 1.23 NTA 3.43 SPE 8.00 Rational Pr 3.29



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:
Current Price (11/19/2010): 4.26
(Figures in Malaysian Ringgits)

Recent Stock Performance:
1 Week -2.7% 13 Weeks 5.2%
4 Weeks 2.9% 52 Weeks 31.9%

Ajinomoto (Malaysia) Berhad Key Data:
Ticker: AJI Country: MALAYSIA
Exchanges: AMN Major Industry: Food & Beverages
Sub Industry: Miscellaneous Food

2010 Sales 284,616,880
(Year Ending Jan 2011).
 Employees: 380

Currency: Malaysian Ringgits Market Cap: 259,003,740
Fiscal Yr Ends: March Shares Outstanding: 60,799,000
Share Type: Ordinary Closely Held Shares: 34,430,813

Day's Range: 4.22 - 4.30
52wk Range: 3.18 - 4.97
Volume: 76,400
Avg Vol (3m): 63,365

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

Ajinomoto (21.8.2010)

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