Dutch Lady 26.4.2016

Add caption

Consumer Stocks on my radar screen

Carlsberg
Guinness
Nestle
Dutch Lady
Hup Seng Industries
Padini
Zhulian


Carlsberg

ROE 64.08%
EPS CAGR 5 Yrs 19.5%
DY High 5.2% - Low 3.6%
D/E 0.02
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 1584.78 m
LFY Earnings 191.63 m
Gross Margin 36.26%
Market Cap RM  4353.85 m
Shares (m) 305.75
Per Share price RM  14.24
P/E 22.7
DCA Strong


Guinness

ROE 54.62%
EPS CAGR 5 Yrs 13%
DY High 7.1% - Low 4.1%
D/E 0.53
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  1623.69 m
LFY Earnings 207.40 m
Gross Margin 33.70%
Market Cap  RM 5437.76 m
Shares (m) 302.10
Per Share price RM 18.00
P/E  26.2
DCA Strong


Nestle

ROE 67.27%
EPS CAGR 5 Yrs 11.6%
DY High 4.0% - Low 3.1%
D/E 0.13
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 4556.42  m
LFY Earnings  505.35 m
Gross Margin 34.09%
Market Cap  RM 14,252.91 m
Shares (m)  234.50
Per Share price RM  60.78
P/E 28.2
DCA Strong


Dutch Lady

ROE 57.08%
EPS CAGR 5 Yrs 21.2%
DY High 6.3% - Low 3.6%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  882.18 m
LFY Earnings 123.38  m
Gross Margin 58.18%
Market Cap  RM 3101.44 m
Shares (m)  64
Per Share price RM  48.46
P/E 25.1
DCA Strong


Hup Seng Industries

ROE 21.24%
EPS CAGR 5 Yrs 46.9%
DY High 11.0% - Low 7.3%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues 247.82  m
LFY Earnings 32.54  m
Gross Margin 35.47%
Market Cap RM  414.00 m
Shares (m)  120.00
Per Share price RM  3.45
P/E  12.7


Padini

ROE 28.23%
EPS CAGR 5 Yrs 25%
DY High 4.9% - Low 2.9%
D/E 0.15
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  723.41 m
LFY Earnings  96.00 m
Gross Margin 48.19%
Market Cap RM 1236.87 m
Shares (m) 657.91
Per Share price RM 1.88
P/E 12.9


Zhulian

ROE 25.91%
EPS CAGR 5 Yrs 14.7%
DY High 8.7% - Low 5.4%
D/E 0.00
Revenues Growing last 3 Years
Earnings Growing last 3 Years
LFY Revenues  450.43 m
LFY Earnings 117.09  m
Gross Margin 72.51%
Market Cap RM 1334.00 m
Shares (m) 460.00
Per Share price RM  2.90
P/E 11.4


DCA = durable competitive advantage

Cash-rich Dutch Lady can sustain high dividends

Cash-rich Dutch Lady can sustain high dividends


Written by Insider Asia
Wednesday, 20 March 2013

Stocks that pay steady dividends are always attractive to investors. For
those who are more risk averse, high dividend payout levels and yields
often provide good support to share prices amid short-term market
volatility. For others, consistent dividends are a dependable source of
income.

In the long run, companies that maintain high payouts are usually those
operating in mature industries with lower capital expansion requirements.
While expected to grow at a modest pace, they are also more resilient
during economic downturns.

Generous dividends that are supported by strong earnings growth over
the past few years are among the key driving forces behind the
handsome share price gains for DUTCH LADY MILK INDUSTRIES BHD
[] (RM47.28).

The company’s net profit more than doubled over the past three years, to
RM123.4 million in 2012 from RM60.4 million in 2009. The outsized
earnings growth relative to sales — which increased by some 28% over
the same period — was attributed to a combination of factors, including
focusing on key growth products, having a more favourable sales mix
(exiting from the low margin creamer business), and enjoying economies of
scale as well as cost management.

The company’s range of powdered and liquid milk as well as yoghurt
products is estimated to account for some 20% of the local dairy market.
With the stronger cash flow from operations and minimal need for capital
expenditure, Dutch Lady’s cash has been piling up fast. Net cash grew
to RM204.8 million at the end of last year from RM41.7 million at end-
2009.

This, in turn, has allowed the company to raise its dividend payments.
Net dividends jumped to RM2.60 per share last year from 73.8 sen
per share for 2009.

Its strong balance sheet implies sustainability of dividends at a high level.
Capital expenditure (capex) is expected to rise in the
current year, by a reported RM15 million to expand capacity for the
company’s liquid milk production, .....

http://www.theedgemalaysia.com/business-news/233480-cash-rich-dutch-lady-can-sustain-high-dividends-.html

Industries - Dairy Products

Carlsberg versus Dutch Lady (A Comparative Study)

	7.4.2012		3.4.2012
	Carlsberg		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	1,489.36		810.65
COGS			505.53
Gross Profit			304.47
Operating Profit	216.036		139.372
Financing costs	-4.385		-0.919
PBT	220.374		141.553
PAT	167.38		108.082
EPS (basic) sen	54.35		168.88
EPS (diluted) sen
Balance Sheet
NCA	591.354		74.048
CA	369.504		324.465
Total Assets	960.858		398.513
Total Equity	631.049		259.154
NCL	76.033		4.051
CL	253.776		135.308
Total Liabilities	329.809		139.359
Total Eq + Liab	960.858		398.513
Net assets per share	2.060		4.05
Cash & Eq	72.196		193.143
LT Borrowings	0		0
ST Borrowings	22.251		0
Net Cash	49.945		193.143
Inventories	62.538		93.448
Trade receivables	231.108		36.713
Trade payables	214.185		121.831
Quick Ratio	1.21		1.71
Current Ratio	1.46		2.40
Cash flow statement
PBT	220.374		141.553
OPBCWC	253.167
Cash from Operations	197.728		188.290
Net CFO	154.537		161.940
CFI	-21.577		-7.135
CFF	-162.735		-47.319
Capex	-27.701		-10.882
FCF	126.836		151.058
Dividends paid	-127.268		-46.400
DPS (sen)	41.63		72.5
No of ord shares (m)
basic	305.748		64
diluted
Financial Ratios
Gross Profit Margin	0.00%		37.56%
Net Profit Margin	11.24%		13.33%
Asset Turnover	1.55		2.03
Financial Leverage	1.52		1.54
ROA	17.42%		27.12%
ROC	28.80%		163.73%
ROE	26.52%		41.71%
Valuation	7.4.2012		3.4.2012
Price	10.74		36
Market cap (m)	3283.73		2304.00
P/E	19.62		21.32
P/BV	5.20		8.89
P/FCF	25.89		15.25
P/Div	25.80		49.66
DPO ratio	0.76		0.43
EY	5.10%		4.69%
FCF/P	3.86%		6.56%
DY	3.88%		2.01%
DIO   (Days)	#DIV/0!		67
DSO  (Days)	57		17
DPO  (Days)	#DIV/0!		88
CCC   (Days)	#DIV/0!		-4

Dutch Lady: How do you value this stock?

Dutch Lady

FYE 31st Dec Qtr  Year Revenue Earnings  EPS Div NAV ttm-EPS ROE Q4 2011 211.404 28.37 44.33 37.5 4.05 168.88 41.70% Q3 2011 201.708 23.6 36.87 35 3.98 141.48 35.55% Q2 2011 200.892 27.775 43.4 0 3.61 125.43 34.75% Q1 2011 196.643 28.338 44.28 0 3.53 111.59 31.61% Q4 2010 156.768 10.835 16.93 37.5 3.09 99.83 32.31% Q3 2010 183.619 13.822 20.82 35 3.27 107.98 33.02% Q2 2010 185.784 18.918 29.56 0 3.07 118.74 38.68% Q1 2010 170.454 20.812 32.52 0 3.14 113.23 36.06% Q4 2009 169.521 16.048 25.08 57.19 2.81 94.39 33.59% Q3 2009 177.129 20.21 31.58 8.44 Q2 2009 176.631 15.389 24.05 0 Q1 2009 168.566 8.753 13.68 0

Dutch Lady	31/12/2011	31/12/2010	Absolute Chg	Change
Revenue	810.65	696.63	114.02	16.37%
Gross Profit	304.47	248.664	55.81	22.44%
Operating Profit	139.372	89.221	50.15	56.21%
Financing costs	-0.919	0	-0.92	#DIV/0!
PBT	141.553	90.104	51.45	57.10%
PAT	108.082	63.887	44.20	69.18%
EPS (basic) sen	168.88	99.82	69.06	69.18%
NCA	74.048	73.246	0.80	1.09%
CA	324.465	234.244	90.22	38.52%
Total Assets	398.513	307.49	91.02	29.60%
Total Equity	259.154	197.472	61.68	31.24%
NCL	4.051	3.757	0.29	7.83%
CL	135.308	106.261	29.05	27.34%
Total Liabilities	139.359	110.018	29.34	26.67%
Total Eq + Liab	398.513	307.49	91.02	29.60%
Net assets per share	4.05	3.09	0.96	31.07%
Cash & Eq	193.143	85.657	107.49	125.48%
LT Borrowings	0	0	0.00	#DIV/0!
ST Borrowings	0	0	0.00	#DIV/0!
Net Cash	193.143	85.657	107.49	125.48%
Inventories	93.448	72.722	20.73	28.50%
Trade receivables	36.713	75.176	-38.46	-51.16%
Trade payables	121.831	99.638	22.19	22.27%
Current Ratio	2.40	2.20	0.19	8.78%
PBT	141.553	90.104	51.45	57.10%
OPBCWC			0.00	#DIV/0!
Cash from Operations	188.290	123.391	64.90	52.60%
Net CFO	161.940	98.389	63.55	64.59%
CFI	-7.135	-8.064	0.93	-11.52%
CFF	-47.319	-46.400	-0.92	1.98%
Capex	-10.882	-9.089	-1.79	19.73%
FCF	151.058	89.300	61.76	69.16%
Dividends paid	-46.400	-46.400	0.00	0.00%
DPS (sen)	72.5	72.5	0.00	0.00%
No of ord shares (m)	64	64	0.00	0.00%
Financial Ratios
Net Profit Margin	13.33%	9.17%	0.04	45.38%
Asset Turnover	2.03	2.27	-0.23	-10.21%
Financial Leverage	1.54	1.56	-0.02	-1.24%
ROA	27.12%	20.78%	0.06	30.54%
ROC	163.73%	57.14%	1.07	186.57%
ROE	41.71%	32.35%	0.09	28.91%
Valuation	5.3.2012	5.3.2011
Price	29.5	17.38	12.12	69.74%
Market cap (m)	1888.00	1112.32	775.68	69.74%
P/E	17.47	17.41	0.06	0.33%
P/BV	7.29	5.63	1.65	29.34%
P/FCF	12.50	12.46	0.04	0.34%
P/Div	40.69	23.97	16.72	69.74%
DPO ratio	0.43	0.73	-0.30	-40.89%
EY	5.72%	5.74%	0.00	-0.33%
FCF/P	8.00%	8.03%	0.00	-0.34%
DY	2.46%	4.17%	-0.02	-41.08%

The price of Dutch Lady was RM 29.50 on 5.3.2012.  Its price a year ago, on 5.3.2011 was RM 17.38.  However, look at their  PEs.  Today, Dutch Lady is trading at PE of 17.47 while it was trading at PE of 17.41 a year ago.  :-)