Showing posts with label Ajiya. Show all posts
Showing posts with label Ajiya. Show all posts

Friday 22 June 2012

Investor's Checklist: Industrial Materials

This is a very traditional Old Economy sector, with many hard assets and high fixed costs.

Industrial materials are divided into commodity producers (steel, chemicals) and producers of noncommodity value-added goods and services (machinery, some specialty chemicals).

Buyers of commodities choose their produce on price - otherwise, commodities are the same product, regardless of who makes them.

The sales and profits of companies in this sector are very sensitive to the business cycle.

Very few industrial materials companies have any competitive advantages; the exceptions are those in concentrated industries (e.g., defense), those with a specialized niche product (e.g., Alcoa, some chemicals makers), and, above all, those that can produce their goods at the lowest cost (e.g., Nucor).

Only the most efficient producers will survive the downturn:  The best bet is to be the low-cost producer and owe little debt.

Asset turnover (total asset turnover [TATO] and fixed asset turnover [FATO] measure a manufacturing firm's efficiency.

Watch out for industrial firms with too much debt, large underfunded pension plans, and big acquisitions that distract management.


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



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

Saturday 24 April 2010

A quick look at Ajiya (24.4.2010)

Ajiya Berhad Company

Business Description:
Ajiya Berhad. The Group's principal activities are manufacturing and supplying materials used in the construction and related industries. It offers metal, zinc and aluminum products for roof building, ceiling, window, and door frame and other similar products, as well as safety glass and other glass related products. Other activities include carrying on business as manufacturers, commission agents, manufacturers' agents, contractors, sub-contractor and dealers in all types of metal products and building materials, as well as providing, designing and installing metal sheet roofing and insulator materials. It also operates as an investment holding company. Operations are carried out in Malaysia and other countries.


Wright Quality Rating: LAB1 Rating Explanations
Stock Performance Chart for Ajiya Berhad






A quick look at Ajiya (24.4.2010)
http://spreadsheets.google.com/pub?key=tD3AF4z8Z_78wCEiKBcca6Q&output=html

Comment:
Profitable.
Strong balance sheet.
Low ttm-PE of 6.17, DY 2.10%
PE is low, reflecting its earnings growth potential.