Nestle versus Dutch Lady (A Comparative Study)

	3.4.2012		3.4.2012
	Nestle		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	4,700.99		810.65
Gross Profit	1,542.12		304.47
Operating Profit	579.428		139.372
Financing costs	-21.398		-0.919
PBT	558.809		141.553
PAT	456.301		108.082
EPS (basic) sen	194.58		168.88
EPS (diluted) sen
Balance Sheet
NCA	987.259		74.048
CA	1015.064		324.465
Total Assets	2002.323		398.513
Total Equity	640.86		259.154
NCL	446.723		4.051
CL	914.74		135.308
Total Liabilities	1361.463		139.359
Total Eq + Liab	2002.323		398.513
Net assets per share	2.730		4.05
Cash & Eq	52.461		193.143
LT Borrowings	337.711		0
ST Borrowings	4.223		0
Net Cash	-289.473		193.143
Inventories	517.573		93.448
Trade receivables	444.854		36.713
Trade payables	878.321		121.831
Quick Ratio	0.54		1.71
Current Ratio	1.11		2.40
Cash flow statement
PBT	558.809		141.553
OPBCWC	681.492
Cash from Operations	640.247		188.290
Net CFO	581.844		161.940
CFI	-90.683		-7.135
CFF	-461.013		-47.319
Capex	-93.015		-10.882
FCF	488.829		151.058
Dividends paid	-398.650		-46.400
DPS (sen)	180.00		72.5
No of ord shares (m)
basic	234.5		64
diluted
Financial Ratios
Gross Profit Margin	32.80%		37.56%
Net Profit Margin	9.71%		13.33%
Asset Turnover	2.35		2.03
Financial Leverage	3.12		1.54
ROA	22.79%		27.12%
ROC	49.05%		163.73%
ROE	71.20%		41.71%
Valuation	3.4.2012		3.4.2012
Price	55.9		36
Market cap (m)	13108.55		2304.00
P/E	28.73		21.32
P/BV	20.45		8.89
P/FCF	26.82		15.25
P/Div	32.88		49.66
DPO ratio	0.87		0.43
EY	3.48%		4.69%
FCF/P	3.73%		6.56%
DY	3.04%		2.01%

MBMR versus Dutch Lady (A Comparative Study)

	3.4.2012		3.4.2012
	MBMR		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	1,752.30		810.65
Gross Profit	132.71		304.47
Operating Profit	41.998		139.372
Financing costs	1.556		-0.919
PBT	151.099		141.553
PAT	138.053		108.082
EPS (basic) sen	49.77		168.88
EPS (diluted) sen	49.25
Balance Sheet
NCA	1257.34		74.048
CA	775.88		324.465
Total Assets	2033.22		398.513
Total Equity	1307.129		259.154
NCL	373.477		4.051
CL	352.614		135.308
Total Liabilities	726.091		139.359
Total Eq + Liab	2033.22		398.513
Net assets per share	4.550		4.05
Cash & Eq	247.398		193.143
LT Borrowings	371.459		0
ST Borrowings	57.292		0
Net Cash	-181.353		193.143
Inventories	251.154		93.448
Trade receivables	264.329		36.713
Trade payables	286.406		121.831
Quick Ratio	1.49		1.71
Current Ratio	2.20		2.40
Cash flow statement
PBT	151.099		141.553
OPBCWC	53.903
Cash from Operations	-		188.290
Net CFO	0.802		161.940
CFI#	-291.327		-7.135
CFF	355.727		-47.319
#Acquisition sub  -311.791
Capex	-27.114		-10.882
FCF	-26.312		151.058
Dividends paid	-33.995		-46.400
DPS (sen)	14.00		72.5
No of ord shares (m)
basic	242.864		64
diluted	245.429
Financial Ratios
Gross Profit Margin	7.57%		37.56%
Net Profit Margin	7.88%		13.33%
Asset Turnover	0.86		2.03
Financial Leverage	1.56		1.54
ROA	6.79%		27.12%
ROC	9.27%		163.73%
ROE	10.56%		41.71%
Valuation	3.4.2012		3.4.2012
Price	4.76		36.08
Market cap (m)	1156.03		2309.12
P/E	8.37		21.36
P/BV	0.88		8.91
P/FCF	-43.94		15.29
P/Div	34.01		49.77
DPO ratio	0.25		0.43
EY	11.94%		4.68%
FCF/P	-2.28%		6.54%
DY	2.94%		2.01%

23.3.2012
It is thus not surprising that MBMR announced thus:
NEW ISSUE OF SECURITIES (CHAPTER 6 OF LISTING REQUIREMENTS): COMBINATION OF NEW ISSUE OF SECURITIES

MBM RESOURCES BERHAD (“MBMR” OR THE “COMPANY”)

(I) PROPOSED BONUS ISSUE; AND
(II) PROPOSED RIGHTS ISSUE WITH WARRANTS 

Aeon versus Dutch Lady (A Comparative Study)

	3.4.2012		3.4..2012
	Aeon		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	2,984.61		810.65
Gross Profit	-		304.47
Operating Profit	271.775		139.372
Financing costs	0		-0.919
PBT	277.272		141.553
PAT	195.353		108.082
EPS (basic) sen	55.66		168.88
EPS (diluted) sen
Balance Sheet
NCA	1674.326		74.048
CA	763.156		324.465
Total Assets	2437.482		398.513
Total Equity	1287.91		259.154
NCL	21.146		4.051
CL	1128.426		135.308
Total Liabilities	1149.572		139.359
Total Eq + Liab	2437.482		398.513
Net assets per share	3.669		4.05
Cash & Eq	341.052		193.143
LT Borrowings	0		0
ST Borrowings	0		0
Net Cash	341.052		193.143
Inventories	353.555		93.448
Trade receivables	68.549		36.713
Trade payables	1108.504		121.831
Quick Ratio	0.36		1.71
Current Ratio	0.68		2.40
Cash flow statement
PBT	277.272		141.553
OPBCWC	414.932
Cash from Operations	447.334		188.290
Net CFO	356.860		161.940
CFI	-304.594		-7.135
CFF	-42.122		-47.319
Capex	-315.131		-10.882
FCF	41.729		151.058
Dividends paid	-42.120		-46.400
DPS (sen)	12.00		72.5
No of ord shares (m)
basic	351		64
diluted
Financial Ratios
Gross Profit Margin	#VALUE!		37.56%
Net Profit Margin	6.55%		13.33%
Asset Turnover	1.22		2.03
Financial Leverage	1.89		1.54
ROA	8.01%		27.12%
ROC	20.63%		163.73%
ROE	15.17%		41.71%
Valuation	3.4.2012		3.4.2012
Price	9.5		36.08
Market cap (m)	3334.50		2309.12
P/E	17.07		21.36
P/BV	2.59		8.91
P/FCF	79.91		15.29
P/Div	79.17		49.77
DPO ratio	0.22		0.43
EY	5.86%		4.68%
FCF/P	1.25%		6.54%
DY	1.26%		2.01%

Coastal versus Dutch Lady (A Comparative Study)

	3.4.2012		5.3.2012
	Coastal		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	719.31		810.65
Gross Profit	196.67		304.47
Operating Profit	-		139.372
Financing costs	-0.519		-0.919
PBT	191.636		141.553
PAT	190.954		108.082
EPS (basic) sen	39.51		168.88
EPS (diluted) sen
Balance Sheet
NCA	98.487		74.048
CA	1042.326		324.465
Total Assets	1140.813		398.513
Total Equity	770.798		259.154
NCL	16.936		4.051
CL	353.079		135.308
Total Liabilities	370.015		139.359
Total Eq + Liab	1140.813		398.513
Net assets per share	1.595		4.05
Cash & Eq	150		193.143
LT Borrowings	11.414		0
ST Borrowings	4.089		0
Net Cash	134.497		193.143
Inventories	819.277		93.448
Trade & other receivables	72.347		36.713
Trade & other payables	348.967		121.831
Quick Ratio	0.63		1.71
Current Ratio	2.95		2.40
Cash flow statement
PBT	191.636		141.553
OPBCWC	194.058
Cash from Operations	61.380		188.290
Net CFO	59.471		161.940
CFI	14.510		-7.135
CFF	-75.736		-47.319
Capex	-16.547		-10.882
FCF	42.924		151.058
Dividends paid	-40.231		-46.400
DPS (sen)	8.33		72.5
No of ord shares (m)
basic	483.229		64
diluted
Financial Ratios
Gross Profit Margin	27.34%		37.56%
Net Profit Margin	26.55%		13.33%
Asset Turnover	0.63		2.03
Financial Leverage	1.48		1.54
ROA	16.74%		27.12%
ROC	30.01%		163.73%
ROE	24.77%		41.71%
Valuation	3.4.2012		5.3.2012
Price	2.02		29.5
Market cap (m)	976.12		1888.00
P/E	5.11		17.47
P/BV	1.27		7.29
P/FCF	22.74		12.50
P/Div	24.26		40.69
DPO ratio	0.21		0.43
EY	19.56%		5.72%
FCF/P	4.40%		8.00%
DY	4.12%		2.46%

Apex Healthcare versus Dutch Lady (A Comparative Study)

	3.4.2012		5.3.2012
	Apex Healthcare		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	366.00		810.65
Gross Profit	95.14		304.47
Operating Profit	-		139.372
Financing costs	-0.288		-0.919
PBT	35.849		141.553
PAT	28.468		108.082
EPS (basic) sen	29.96		168.88
EPS (diluted) sen	29.96
Balance Sheet
NCA	85.596		74.048
CA	202.303		324.465
Total Assets	287.899		398.513
Total Equity	212.212		259.154
NCL	8.737		4.051
CL	66.95		135.308
Total Liabilities	75.687		139.359
Total Eq + Liab	287.899		398.513
Net assets per share	2.120		4.05
Cash & Eq	22.802		193.143
LT Borrowings	1.345		0
ST Borrowings	2.267		0
Net Cash	19.19		193.143
Inventories	43.098		93.448
Trade receivables	86.158		36.713
Trade payables	63.665		121.831
Quick Ratio	2.38		1.71
Current Ratio	3.02		2.40
Cash flow statement
PBT	35.849		141.553
OPBCWC	42.941
Cash from Operations	39.476		188.290
Net CFO	32.650		161.940
CFI	-15.866		-7.135
CFF	-16.979		-47.319
Capex	-13.251		-10.882
FCF	19.399		151.058
Dividends paid	-11.363		-46.400
DPS (sen)	12.12		72.5
No of ord shares (m)
basic	93.717		64
diluted
Financial Ratios
Gross Profit Margin	25.99%		37.56%
Net Profit Margin	7.78%		13.33%
Asset Turnover	1.27		2.03
Financial Leverage	1.36		1.54
ROA	9.89%		27.12%
ROC	14.75%		163.73%
ROE	13.41%		41.71%
Valuation	3.4.2012		5.3.2012
Price	2.92		29.5
Market cap (m)	273.65		1888.00
P/E	9.61		17.47
P/BV	1.29		7.29
P/FCF	14.11		12.50
P/Div	24.08		40.69
DPO ratio	0.40		0.43
EY	10.40%		5.72%
FCF/P	7.09%		8.00%
DY	4.15%		2.46%

Malaysia’s stock market hit an all-time high

Stock market hits all-time high

Malaysia’s stock market hit an all-time high of 1,603.96 points yesterday and closed at 1,603.78 for a gain of 7.45 points. PETALING JAYA: Malaysia’s stock market hit a new high yesterday with the FTSE Bursa Malaysia KLCI (FBM KLCI) reaching 1,603.96 after... By WONG WEI-SHEN weishen.wong@thestar.com.my

Impact of Retained earnings on EPS

When EPS growth is entirely due to profits from retained earnings, the increased EPS percentage measures the impact of ROE on those retained earnings. 

For instance,

Half of profit is retained: If ROE is 20 percent, half the profit is retained and ROE in the following year remains steady at 20 percent, EPS will increase by 10 percent.

All profit is retained: If all profit is retained and reinvested at 20 percent, EPS will increase by 20 per cent. 

All profit is distributed: If all profit were distributed, irrespective of ROE, EPS growth would be zero.

Money is actually a debt instrument. So grows the gap between the haves and have-nots.

When it come to personal-finance success, responsibility for how we earn, spend, save and invest is obviously essential. However, financial objectives can easily elude us if we lack the whole story about money. 

Central banks worldwide (Federal Reserve for the U.S.) issue currency at the precise moment it is borrowed via an automated procedure called fractional-reserve banking. Therefore, money is actually a debt instrument (Federal Reserve Note). This private profit, interest-delivering system was designed centuries ago.

Over time debt grows per compounding interest and purchasing power diminishes with increased cost of living. The cost of living rises as businesses add their interest cost from bank loans to the cost of the goods and services we purchase.

And so grows the gap between the haves and have-nots.

That brings me to the pivotal issue of how much purchasing power $1.00 has in the marketplace today. One dollar is only worth 4.5 cents and an online inflation calculator proves my point. An item purchased for $1.00 in 1913 (when the Federal Reserve System was created) would cost $22.10 in 2010; a 2000% increase in inflation!

Without a working knowledge of money as debt, even the most sincere efforts may falter as a rising cost of living erodes hard-won forward movement. When following conventional financial wisdom, the solution to keeping up and making ends meet could well end up, once again, as participation in the vicious cycle of credit and debt. Who benefits?

If you find a good company at a good price, who cares what "the market" is doing?

When buying a great wonderful company, also ensure that the stock was reasonably priced.

Even a great company can be a bad investment if you pay too much for it. 

If you find a good company at a good price, who cares what "the market" is doing?

Petronas Dagangan versus Dutch Lady (A Comparative Study)

	5.3.2012		5.3.2012
	PetDag		Dutch Lady
Income Statement
	31/12/2011		31/12/2011
	RM (m)		RM (m)
Revenue	23,251.78		810.65
Gross Profit	2,100.70		304.47
Operating Profit	1209.173		139.372
Financing costs	-1.015		-0.919
PBT	1208.911		141.553
PAT	875.927		108.082
EPS (basic) sen	87.5		168.88
EPS (diluted) sen
Balance Sheet
NCA	3957.02		74.048
CA	4527.712		324.465
Total Assets	8484.732		398.513
Total Equity	4830.594		259.154
NCL	198.629		4.051
CL	3455.509		135.308
Total Liabilities	3654.138		139.359
Total Eq + Liab	8484.732		398.513
Net assets per share	4.862		4.05
Cash & Eq	1026.209		193.143
LT Borrowings	16.232		0
ST Borrowings	0		0
Net Cash	1009.977		193.143
Inventories	832.6		93.448
Trade receivables	2668.903		36.713
Trade payables	3351.073		121.831
Quick Ratio	1.07		1.71
Current Ratio	1.31		2.40
Cash flow statement
PBT	1208.911		141.553
OPBCWC
Cash from Operations			188.290
Net CFO	1043.938		161.940
CFI	-307.041		-7.135
CFF	-623.159		-47.319
Capex	-289.167		-10.882
FCF	754.771		151.058
Dividends paid	-633.327		-46.400
DPS (sen)	63.75		72.5
No of ord shares (m)
basic	993.454		64
diluted
Financial Ratios
Gross Profit Margin	9.03%		37.56%
Net Profit Margin	3.77%		13.33%
Asset Turnover	2.74		2.03
Financial Leverage	1.76		1.54
ROA	10.32%		27.12%
ROC	22.93%		163.73%
ROE	18.13%		41.71%
Valuation	5.3.2012		5.3.2012
Price	18.24		29.5
Market cap (m)	18120.6		1888.00
P/E	20.69		17.47
P/BV	3.75		7.29
P/FCF	24.01		12.50
P/Div	28.61		40.69
DPO ratio	0.72		0.43
EY	4.83%		5.72%
FCF/P	4.17%		8.00%
DY	3.50%		2.46%