Fraser & Neave Holdings Berhad (At a Glance)

7.3.2012
Fraser and Neave
Income Statement
	30/9/2011	30/9/2010	Absolute Chg	Change
Revenue	3,915.43	3,637.73	277.71	7.63%
Gross Profit	1,202.06	1182.184	19.87	1.68%
Operating Profit	407.977	389.295	18.68	4.80%
Financing costs	-11.427	-7.171	-4.26	59.35%
PBT*	413.448	388.982	24.47	6.29%
PAT*	339.343	307.002	32.34	10.53%
EPS (basic) sen	93.92	85.76	8.16	9.52%
*Excl. Extraord. Income	35.824	0
*Excl. Gain from glass business sold		382.036
Balance Sheet
NCA	1202.24	951.064	251.18	26.41%
CA	1273.599	2017.856	-744.26	-36.88%
Total Assets	2475.839	2968.92	-493.08	-16.61%
Total Equity	1559.112	1796.81	-237.70	-13.23%
NCL	199.426	207.095	-7.67	-3.70%
CL	717.301	965.015	-247.71	-25.67%
Total Liabilities	916.727	1172.11	-255.38	-21.79%
Total Eq + Liab	2475.839	2968.92	-493.08	-16.61%
Net assets per share	4.315	5.019	-0.70	-14.03%
Cash & Eq	290.29	939.335	-649.05	-69.10%
LT Borrowings	150	150	0.00	0.00%
ST Borrowings	0	150	-150.00	-100.00%
Net Cash	140.29	639.335	-499.05	-78.06%
Inventories	314.668	343.717	-29.05	-8.45%
Trade receivables	538.175	528.035	10.14	1.92%
Trade payables	685.237	755.73	-70.49	-9.33%
Quick Ratio	1.34	1.73	-0.40	-22.94%
Current Ratio	1.78	2.09	-0.32	-15.09%
Cash flow statement
PBT	413.448	388.982	24.47	6.29%
OPBCWC	500.521	541.694	-41.17	-7.60%
Cash from Operations	514.109	611.937	-97.83	-15.99%
Net CFO	421.244	511.414	-90.17	-17.63%
CFI	-279.604	584.315	-863.92	-147.85%
CFF	-793.361	-331.713	-461.65	139.17%
Capex	-306.824	-172.486	-134.34	77.88%
FCF	114.420	338.928	-224.51	-66.24%
Dividends paid*	-257.439	-162.096	-95.34	58.82%
DPS (sen)*	71.25	45.28	25.97	57.36%
Not incl. Special div*	-394.282
Special div (sen)	109.124
No of ord shares (m)	361.317	357.988	3.33	0.93%
(include dilutive effects)
Financial Ratios
Gross Profit Margin	30.70%	32.50%	-1.80%	-5.53%
Net Profit Margin	8.67%	8.44%	0.23%	2.69%
Asset Turnover	1.58	1.23	0.36	29.07%
Financial Leverage	1.59	1.65	-0.06	-3.89%
ROA	13.71%	10.34%	3.37%	32.55%
ROC	23.92%	26.52%	-2.61%	-9.83%
ROE	21.77%	17.09%	4.68%	27.39%
Valuation	7.3.2012	7.3.2011
Price	17.9	15.76	2.14	13.58%
Market cap (m)	6467.57	5641.89	825.68	14.63%
P/E	19.06	18.38	0.68	3.71%
P/BV	4.15	3.14	1.01	32.11%
P/FCF	56.52	16.65	39.88	239.56%
P/Div	25.12	34.81	-9.68	-27.82%
DPO ratio	0.76	0.53	0.23	43.68%
EY	5.25%	5.44%	-0.19%	-3.58%
FCF/P	1.77%	6.01%	-4.24%	-70.55%
DY	3.98%	2.87%	1.11%	38.54%

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
03-Feb-12		30-Sep-12		1	31-Dec-11		743,298		41,746		11.60		-
04-Nov-11		30-Sep-11		4	30-Sep-11		995,462		66,207		18.44		-
05-Aug-11		30-Sep-11		3	30-Jun-11		882,475		77,851		21.70		-
05-May-11		30-Sep-11		2	31-Mar-11		1,009,468		131,988		36.80		-

Be a Buffett, don't back the benchmark

Be a Buffett, don't back the benchmark
Warren Buffett’s latest letter to Berkshire Hathaway shareholders is the usual mixture of folksy charm and investment wisdom.

A playing card featuring a picture of Warren Buffett. The investor has beaten the S&P 500 index 39 years out of 47 Photo: Reuters

By Tom Stevenson

9:15PM GMT 03 Mar 2012

33 Comments

The part that grabbed the headlines this year was a comparison of equity investing against bonds and gold, which unsurprisingly came down on the side of shares. Having achieved a 19.8pc annual growth rate from stocks over 47 years, it is not hard to see why they should be Buffett’s first love.

For me, there was a more interesting lesson in this year’s letter. It was a thought prompted by its first page on which Buffett compares his performance year by year since 1965 against the S&P 500 index. Last year, the 4.6pc rise in the value of Berkshire Hathaway’s book value compared with 2.1pc growth in the main US benchmark.

It was the 39th year out of 47 in which he has beaten the market, a fantastically consistent performance. But then, as Buffett says, “if our gain over time outstrips the performance of the S&P 500, we have earned our paychecks. If it doesn’t, we are overpaid at any price.”

So once a year, and cumulatively over the half century he has run Berkshire Hathaway, Buffett compares his progress against the S&P 500. It is a convenient benchmark to see if he is earning his corn and, in that regard, he is no different from any other fund manager.

In another important way, however, Buffett is quite different from the majority of professional investors. This is because, although he cares about his overall performance compared with the benchmark, he is indifferent to how his portfolio of investments compares with the make-up of the S&P 500. He is, to use the jargon, unconstrained by the benchmark.

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Buffett’s approach is simply to buy companies that he believes are undervalued compared with their intrinsic value and hold them for the very long term. If you think that most investors do something similar you may be disappointed. That is because the fund management industry has increasingly lashed itself to the mast of stock market indices. Its buy and sell decisions are to a greater or lesser extent determined not by the intrinsic merits of individual shares but by their weighting within a relevant price-derived benchmark.

It is an approach which more thoughtful investors believe may not necessarily be in the best interests of their customers. It has led to funds having heavy concentrations in small numbers of very large companies or in particular sectors that dominate and, as such, it may be seen as a significant contributor to the stock market’s booms and busts.

Investment approaches that measure their performance against price-related indices almost by definition encourage the purchase of overvalued shares that have been pushed above fair value. This is a particular problem with passive funds like index trackers but, to the extent that actively-managed funds have become “closet trackers”, it means they too risk being sucked in at the top of the market, contributing to moments of madness like the dot.com bubble a decade or so ago.

What is increasingly happening in the institutional investment world in response to these concerns is a move to alternative indices that try to take the price of a share out of the equation. These new indices focus on different measures such as a company’s sales, the value of its assets, even the size of its workforce. Alternatively, they simply measure themselves against an equally-weighted benchmark, one with a similar exposure to every company in an index. In both cases, there is evidence that these approaches outperform market value-based indices in the long run.

So why doesn’t everyone simply invest according to this new “fundamental” approach? The main reason is that the alternative methods have a tendency to solve one problem but create a new one. For example, equally weighting all the companies in an index gives a fund a relatively greater exposure to small companies. There will be times when this is an advantage and times when it leads to under-performance.

As a consequence of this, some active fund managers are testing a move back towards the unconstrained Buffett approach, freeing up their investors to back their best ideas regardless of a benchmark. Some might say that is what they are paid to do.

Tom Stevenson is an investment director at Fidelity Worldwide Investment. The views expressed are his own.
He tweets at @tomstevenson63.

http://www.telegraph.co.uk/finance/comment/tom-stevenson/9119808/Be-a-Buffett-dont-back-the-benchmark.html

Tongher (At a Glance)

6.3.2012
Tongher
Income Statement
	31/12/2011	31/12/2010	Absolute Chg	Change
Revenue	601.05	344.28	256.77	74.58%
Gross Profit	71.79	38.691	33.10	85.55%
Operating Profit			0.00	#DIV/0!
Financing costs	-0.583	-0.146	-0.44	299.32%
PBT	48.591	36.167	12.42	34.35%
PAT	47.585	31.746	15.84	49.89%
EPS (basic) sen	29.04	19.93	9.11	45.71%
Balance Sheet
NCA	202.074	184.129	17.95	9.75%
CA	347.325	326.49	20.84	6.38%
Total Assets	549.399	510.619	38.78	7.59%
Total Equity	400.604	367.243	33.36	9.08%
NCL	8.735	6.384	2.35	36.83%
CL	140.06	136.992	3.07	2.24%
Total Liabilities	148.795	143.376	5.42	3.78%
Total Eq + Liab	549.399	510.619	38.78	7.59%
Net assets per share	2.520	2.310	0.21	9.09%
Cash & Eq	87.408	76.014	11.39	14.99%
LT Borrowings	3.025	0.029	3.00	10331.03%
ST Borrowings	120.781	108.485	12.30	11.33%
Net Cash	-36.398	-32.5	-3.90	11.99%
Inventories	195.402	185.033	10.37	5.60%
Trade receivables	61.414	55.297	6.12	11.06%
Trade payables	17.972	27.897	-9.93	-35.58%
Quick Ratio	1.08	1.03	0.05	5.05%
Current Ratio	2.48	2.38	0.10	4.05%
Cash flow statement
PBT	48.591	36.167	12.42	34.35%
OPBCWC	73.066	39.732	33.33	83.90%
Cash from Operations	45.921	-38.795	84.72	-218.37%
Net CFO	44.364	-40.115	84.48	-210.59%
CFI	-32.670	-93.292	60.62	-64.98%
CFF	0.164	54.174	-54.01	-99.70%
Capex	-35.927	-7.166	-28.76	401.35%
FCF	8.437	-47.281	55.72	-117.84%
Dividends paid	-7.639	-6.370	-1.27	19.92%
DPS (sen)	8.00	5.00	3.00	59.95%
No of ord shares (m)	127.253	127.361	-0.11	-0.08%
Financial Ratios
Gross Profit Margin	11.94%	11.24%	0.71%	6.28%
Net Profit Margin	7.92%	9.22%	-1.30%	-14.14%
Asset Turnover	1.09	0.67	0.42	62.26%
Financial Leverage	1.37	1.39	-0.02	-1.37%
ROA	8.66%	6.22%	2.44%	39.31%
ROC	10.89%	7.94%	2.95%	37.11%
ROE	11.88%	8.64%	3.23%	37.41%
Valuation	6.3.2012	4.3.2011
Price	2.37	2.57	-0.20	-7.78%
Market cap (m)	301.59	327.32	-25.73	-7.86%
P/E	6.34	10.31	-3.97	-38.53%
P/BV	0.75	0.89	-0.14	-15.53%
P/FCF	35.75	-6.92	42.67	-616.35%
P/Div	39.48	51.38	-11.90	-23.17%
DPO ratio	0.16	0.20	-0.04	-20.00%
EY	15.78%	9.70%	6.08%	62.68%
FCF/P	2.80%	-14.44%	17.24%	-119.37%
DY	2.53%	1.95%	0.59%	30.15%

Padini (At a Glance)

6.3.2012
Padini
Income Statement
	30/6/2011	30/6/2010	Absolute Chg	Change
Revenue	568.48	518.84	49.64	9.57%
Gross Profit	290.80	259.28	31.52	12.16%
Operating Profit	106.63	87.374	19.26	22.04%
Financing costs	-1.573	-1.094	-0.48	43.78%
PBT	105.057	86.28	18.78	21.76%
PAT	75.694	60.974	14.72	24.14%
EPS (basic) sen	11.51	9.27	2.24	24.16%
Balance Sheet
NCA	94.585	92.257	2.33	2.52%
CA	349.754	264.325	85.43	32.32%
Total Assets	444.339	356.582	87.76	24.61%
Total Equity	282.677	234.332	48.35	20.63%
NCL	23.715	10.899	12.82	117.59%
CL	137.947	111.351	26.60	23.88%
Total Liabilities	161.662	122.25	39.41	32.24%
Total Eq + Liab	444.339	356.582	87.76	24.61%
Net assets per share	0.430	0.356	0.07	20.63%
Cash & Eq	138.622	135.025	3.60	2.66%
LT Borrowings	22.151	10.125	12.03	118.78%
ST Borrowings	24.948	26.128	-1.18	-4.52%
Net Cash	91.523	98.772	-7.25	-7.34%
Inventories	170.955	76.554	94.40	123.31%
Trade receivables	39.433	32.561	6.87	21.11%
Trade payables	93.94	58.62	35.32	60.25%
Quick Ratio	1.30	1.69	-0.39	-23.14%
Current Ratio	2.54	2.37	0.16	6.81%
Cash flow statement
PBT	105.057	86.280	18.78	21.76%
OPBCWC	129.019	111.207	17.81	16.02%
Cash from Operations	60.017	137.997	-77.98	-56.51%
Net CFO	-2.104	93.513	-95.62	-102.25%
CFI	-2.276	-26.351	24.08	-91.36%
CFF	8.773	3.084	5.69	184.47%
Capex	-24.728	-25.690	0.96	-3.74%
FCF	-26.832	67.823	-94.66	-139.56%
Dividends paid	-26.316	-29.606	3.29	-11.11%
DPS (sen)	4.00	4.50	-0.50	-11.11%
No of ord shares (m)	657.91	657.91	0.00	0.00%
Financial Ratios
Net Profit Margin	13.32%	11.75%	1.56%	13.30%
Asset Turnover	1.28	1.46	-0.18	-12.07%
Financial Leverage	1.57	1.52	0.05	3.30%
ROA	17.04%	17.10%	-0.06%	-0.38%
ROC	39.60%	44.98%	-5.38%	-11.96%
ROE	26.78%	26.02%	0.76%	2.91%
Valuation	6.3.2012	4.3.2011
Price	1.53	1.09	0.44	40.37%
Market cap (m)	1006.60	717.12	289.48	40.37%
P/E	13.30	11.76	1.54	13.07%
P/BV	3.56	3.06	0.50	16.36%
P/FCF	-37.51	10.57	-48.09	-454.80%
P/Div	38.25	24.22	14.03	57.92%
DPO ratio	0.35	0.49	-0.14	-28.40%
EY	7.52%	8.50%	-0.98%	-11.56%
FCF/P	-2.67%	9.46%	-12.12%	-128.18%
DY	2.61%	4.13%	-1.51%	-36.67%

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
29-Nov-11		30-Jun-12		1	30-Sep-11		178,115		26,946		4.10		-
26-Aug-11		30-Jun-11		4	30-Jun-11		132,146		18,076		2.75		-
30-May-11		30-Jun-11		3	31-Mar-11		147,960		24,386		3.71		-
25-Feb-11		30-Jun-11		2	31-Dec-10		141,814		14,484		2.20		-

ttm-EPS  12.76 sen
Price  RM 1.53
PE (ttm)  12x

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.  :-)