KAF - Return on Retained Earnings

KAF
Year		DPS		EPS		Retained EPS
2002		4.5		5.4	a	0.9
2003		5.4		7.9		2.5
2004		6.3		12.6		6.3
2005		5.4		13.7		8.3
2006		5.4		9.9		4.5
2007		30.1		15.8		-14.3
2008		5.6		12.5		6.9
2009		5.6		-2.5		-8.1
2010		5.6		17.3		11.7
2011		11.3		16.2	b	4.9
2012
Total		85.2	c	108.8	d	23.6	e
From	2002	to	2011
EPS increase (sen)			b-a	10.8
DPO			c/d	78%
Return on retained earnings			(b-a)/e	46%
(Figures are in sens)

A Brief Look at KAF

KAF-Seagroatt & Campbell Berhad

Business Description:
KAF-Seagroatt & Campbell Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, is engaged in the stock broking, futures broking, fund management, money broking and discount house activities in Malaysia. Its subsidiaries are KAF-Refco Futures Sdn. Bhd., KAF-Seagrott & Campbell Securities Sdn. Bhd., KAF Nominees (Tempatan) Sdn. Bhd. and KAF Nominees (Asing) Sdn. Bhd.

Current Price (14/1/2011): 1.53
2010 Sales 32,691,000
Employees: 106
Market Cap: 183,600,000
Shares Outstanding: 120,000,000
Closely Held Shares: 106,000,000

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
19-Jan-11		31-May-11		2	30-Nov-10		9,303		7,157		5.96		-
28-Oct-10		31-May-11		1	31-Aug-10		10,406		7,475		6.23		-
20-Jul-10		31-May-10		4	31-May-10		8,619		4,793		3.99		-
20-Apr-10		31-May-10		3	28-Feb-10		6,632		2,383		1.99		-

Estimated EPS (i) = ttm-EPS = 18.17

At 1.53, it is trading at a forward PE of 8.4 x
Estimated EPS (ii) = 2*(5.96 + 6.23) = 2*(12.19) = 24.38 sen
At 1.53, it is trading at a forward PE of 6.3 x
It proposes a dividend of 7.5 sen.
At 1.53, its DY is 4.9%.
At 1.53, its P/B = 1.53 / 1.9467 = 0.79 = 79%

Historical
5 Yr
PE range 8.6 - 13.5
DY range 9.2% - 5.2%

10 Yr
PE range 15.5 - 24.5
DY range 7.2% - 4.4%

Year      DPS    EPS
2003      5.4        7.9
2004      6.3      12.6
2005      5.4      13.7
2006      5.4      13.7
2007    30.1      15.8
2008      5.6      12.5
2009      5.6       -2.5
2000      7.50    17.28     NTA 1.8248
1H11     7.5       12.2      NTA  1.9467

Capital Changes

2005  1/1 Bonus

Date
May 3, 2010	0.075 Dividend
Nov 19, 2009	0.075 Dividend
Jun 5, 2008	0.0375 Dividend
Nov 15, 2007	0.0375 Dividend
Aug 20, 2007	0.0375 Dividend
Feb 26, 2007	0.25 Dividend
Aug 28, 2006	0.0375 Dividend
Nov 18, 2005	0.0375 Dividend
Sep 13, 2005	0.075 Dividend
Sep 1, 2004	0.075 Dividend
Aug 30, 2004	0.075 Dividend
Dec 12, 2003	0.10 Dividend
Aug 28, 2003	0.075 Dividend
* Close price adjusted for dividends and splits.

KAF

Date announced 28/10/2010
Quarter 31/08/2010 Qtr 1
FYE 31/05/2011

STOCK KAF
C0DE  5096 

Price $ 1.53 Curr. PE (ttm-Eps) 8.47 Curr. DY 4.90%
LFY Div 7.50 DPO ratio 43%
ROE 9.6% PBT Margin 96.8% PAT Margin 71.8%

Rec. qRev 10406 q-q % chg 21% y-y% chq 3%
Rec qPbt 10077 q-q % chg 83% y-y% chq 22%
Rec. qEps 6.23 q-q % chg 56% y-y% chq 14%
ttm-Eps 18.06 q-q % chg 4% y-y% chq 158%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 7.00 Avg. L PE 5.00
Forecast High Pr 1.61 Forecast Low Pr 1.19 Recent Severe Low Pr 1.19
Current price is at Upper 1/3 of valuation zone.

RISK: Upside 20% Downside 80%
One Year Appreciation Potential 1% Avg. yield 7%
Avg. Total Annual Potential Return (over next 5 years) 8%

CPE/SPE 1.41 P/NTA 0.81 NTA 1.89 SPE 6.00 Rational Pr 1.08



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

A quick look at KAF (21.4.2010)

KAF-Seagroatt & Campbell Berhad Company

Business Description:
KAF-Seagroatt & Campbell Berhad. The Group's principal activity is providing stockbroking and related services, such as nominee services, safe custody and management of securities. It also operates as an investment holding company. Operations are carried out in Malaysia.




Wright Quality Rating: LLL0 Rating Explanations

A quick look at KAF (21.4.2010)
http://spreadsheets.google.com/pub?key=tt-FqSCZJ3t_dmBwyJhwEwQ&output=html

KAF-Seagroatt posts RM2.39m net profit in 3Q10
Written by Melody Song
Tuesday, 20 April 2010 21:20

KUALA LUMPUR: KAF-SEAGROATT & CAMPBELL BHD [] saw net profit for the third quarter ended Feb 28, 2010 rise to RM2.39 million from a net loss of RM37,000 a year earlier.

Revenue for the quarter was up 123.2% to RM6.63 million from RM2.97 million previously, while earnings per share was 1.99 sen from loss per share of 0.03 sen.

The company, which is principally involved in stockbroking and related services in Malaysia, did not disclose reasons for its performance other than saying its results were dependent on the performance of the local securities market.

For the nine-month period, net profit was RM15.95 million from net loss of RM15.09 million a year earlier while revenue was 80.5% higher at RM23.38 million from RM12.95 million.

Cumulative earnings per share was 13.29 sen from loss per share of 12.58 sen. It proposed an interim dividend of 7.50 sen gross for the current financial year to be paid on May 19.

(The Edge)

KAF records RM6.6m in net profit

KAF records RM6.6m in net profit

Tags: KAF-Seagroatt & Campbell Bhd

Written by Lam Jian Wyn
Thursday, 29 October 2009 00:19

KUALA LUMPUR: KAF-SEAGROATT & CAMPBELL BHD [] returned to profitability with a net profit of RM6.55 million in its first quarter (1Q) ended Aug 31, 2009, from a loss of RM4.71 million a year earlier.

The brokerage and investment holding company posted a revenue of RM10.1 million, up 87.7% from RM5.38 million a year earlier, while earnings per unit stood at 5.46 sen per share from a loss of 3.93 sen a year earlier.

Profit before tax for the current quarter stood at RM8.23 million, 39.3% lower compared to the profit-before tax of RM13.57 million in the preceding quarter. This is mainly due to the higher writeback in allowance for the diminution in the value of equity investment made in the preceding quarter coupled with lower interest income for the current interim period, according to notes accompanying the result announced yesterday.

KAF-Seagroatt returns to RM12m profit in fourth quarter

KAF-Seagroatt returns to RM12m profit in fourth quarter

Tags: fourth quarter KAF-Seagroatt & Campbell Bhd

Written by Financial Daily
Friday, 24 July 2009 09:53

KUALA LUMPUR: KAF-SEAGROATT & CAMPBELL BHD [] returned to profitability, with a net profit of RM12.12 million in its fourth quarter (4Q) ended May 31, 2009 versus a net loss of RM37,000 in the previous three months to Feb 28, 2009 due to higher volume of transactions and writeback in allowance for the diminution in the value of equity.

Revenue jumped 129% to RM6.78 million from RM2.96 million. No final dividend was proposed.

For the year ended May 31, 2009 (FY09), KAF-Seagroatt posted a net loss of RM2.96 million versus a net profit of RM17.49 million in FY08, while revenue fell 53% to RM19.73 million from RM42.54 million.

The group’s financial year-end was changed from March to May, starting with the 14-month period ended May 31, 2008. The stock was untraded yesterday, while it closed at RM1.18 on Wednesday.


This article appeared in The Edge Financial Daily, July 24, 2009


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Tough times ahead but KAF won't cut jobs
By Chong Pooi Koon
Published: 2008/11/12




There's no way any brokers are going to maintain the 2007 or 2008 earnings into 2009, says KAF-Seagroatt's managing director Datuk Khatijah Ahmad


STOCKBROKING firm KAF-Seagroatt & Campbell Bhd (5096) will make a smaller profit in the year to May 2009 as market volume dwindles, but it will not cut jobs even as it anticipates the next three years to be tough.

Instead, managing director Datuk Khatijah Ahmad sees an opportunity to hire and strengthen the staff force of the research-driven broking house as other global banks start to retrench amid the financial crisis.

"There're no job cuts or pay cuts although the bonus may not be as good as last year's. We want to retain good people," Khatijah said after a shareholder meeting in Kuala Lumpur yesterday.

KAF-Seagroatt made RM17.5 million net profit in the 14 months to May 31 2008 on revenue of RM42.5 million.
Khatijah said, however, that such earnings would not be sustained this year.

"The foreign investors are leaving or have left, the volume has dropped in the equity market. There's no way any brokers are going to maintain the 2007 or 2008 earnings into 2009," she said.

The global financial market is in unchartered waters and, until the foreign investors return to Malaysia, there's little catalyst for the stock market.

"One should be prepared for a very slow market. As long as we are not losing money and can maintain the business, we should be fine," Khatijah said.

KAF-Seagroatt is a low-cost operator and can ride out the market trough in the next few years through earnings from its solid balance sheet, she added.

As at May this year, its total current assets were more than double its current liabilities and the broker has had no borrowings.

Khatijah is also not too concerned over the investment revaluation loss after its asset prices were marked-to-market, which dragged the company to a first quarter net loss of RM4.7 million.

"These are blue-chip shares that pay good dividend. It'll be silly to liquidate in this bottoming market," she said.

http://www.btimes.com.my/Current_News/BTIMES/articles/kafo-2/Article/