Favco is not manufacturing mobile cranes anymore? would you please eleborate more?

Also the sales and service contracts, what is the contract value do you know? you work in crane industry?

share buy back a lot?

"if your intrinsic value for APM is 3.95 and the share price now is 3.95, that means dont buy now coz there is NO margin of safety!"

please bare in mind that the number is calculated by -6% growth for 10 years, and zero terminal growth. it is extremely conservative.

Thanks man. superb write up.

thank you for the heads up

"The heavy exposure on 2 jack-up rigs with heavy borrowings and the crash of oil price."

KC can you point me to the exact report of this borrowing matter? I checked the latest balance sheet the debt/equity are ok? what am i missing here?
Also can you tell us what made you so bearish on O&G? are the capex of oil producers not going to go back to the level before? in the future?

"It was the alert of a course participant which prevented me from average down when the share price continued to drop, and instead I cut loss at an early stage, though I still own a little now."

What was the trouble you found with coastal that made you sell most of your position?

awesome effort.. salute

Thank you for your feedback KC. Coming back Malaysia anytime soon? golf and booze on me.

MIKROMB 0112 RM0.24
MIKRO MSC BHD

Technology ACE Market

Based on June13 Report RM0.21

1. ROIC 28%
2. ROA 14%
3. ROE 17%
4. EV/EBIT 5.6
5. Earning Yield 18%
6. P/B 1.3
7. Cash Flow OK. Operation CF 164% over Net Income

Studies based on figures only. Have yet to read through full annual report.

The book says that ACE market has quite a few good companies has anyone found out about that?

ER YEAH NOTION VTEC IS ANOTHER TECH COMPANY IN MY WATCH LIST.

EH I DIDNT KNOW MY NAME CAME UP IN ONE OF THE POST HERE LOL..

ERIC WHERE YOU GET ALL THE COLD EYE SELECTIONS AH? JUST WONDERING.
ONE OF MY GOOD FRIEND HAPPENS TO KNOW COLD EYE. MY FRIEND SAID HAIYA WHY NEED TO GO THROUGH ALL THE FUSS DO SO MUCH HOMEWORK? JUST FOLLOW WHAT COLDEYE BUYS CAN LIAO......... WHICH IS QUITE TRUE ALSO WHAHAHAHHAHA

THANK YOU ERIC.

HAVE YOU LOOKED AT JCY? ANOTHER TECH COMPANY WHICH IS CHEAP AND DOING OKAY....

Dear all,

Have you all came across ECS ICT BHD?

From my findings its doing quite okay, although a very young ICT company.

1. Free cash flow
2. ROIC 25%
3. ROA 9%
4. ROE 16%
5. EV/Ebit 3
6. Earning Yield 34%
7. P/B 1

What you guys think about this company?

Thank you KC

Can you give me a quick review on Media Prima?

Can I suggest another one?

LUXCHEM 5143 RM1.24

1. GOOD GROWTH
2. FCF FOR RECENT FIVE YEARS
3. ROIC20 LAST FINANCIAL YEAR
4. EV/EBIT4.6
5. EY21

FORMOSA PROSONIC INDUSTRIES BERHAD
FPI, 9172, RM0.68

DEC2012 REPORT, RM0.71
1. ROIC 30
2. ROA 7
3. ROE 11
4. FREE CASH FLOW, CFFO/NI 189%
5. DIVIDEND YIELD 0.06
6. NTA RM0.97, P/NTA 0.74
7. EV/EBIT 3.45
8. EARNING YIELD 29%
9. PRICE/BOOK VALUE 0.74

ANY SECOND THOUGHTS?

SEAL INCORPORATED BHD
SEAL, 4286
RM0.525

FY2012 JUNE
1. ROIC 25
2. ROE 11, ROA 12
3. P/NTA 0.58
4. EV/EBIT 1.7
5. EY 58
6. P/B 0.58

SUPER ENTERPRISE HOLDING BHD
SUPER. 8656

RM1.175

FY2013 MAR 2013 REPORT
1. ROIC 13
2. ROA 8, ROE11
3. NTA RM2.08, PRICE/NTA 0.39
4. DIV YIELD 0.03, PAYOUT RATIO 10%
5. PE RATIO 3.46
6. EV/EBIT 3.07
7. EARNING YIELD 32%
8. PRICE/BOOK VALUE 0.39
9. FREE CASH FLOW FOR SINCE FY2009

NOTES
1. REVENUE GROWTH SOSO
2. HAVE YET TO READ UP ON THE COMPANY STRUCTURE, GOVERNANCE AND PRODUCT DURABILITY.

FLBHD is another young company with okay financial evaluation. Selling at RM0.72.

FY2012
1. ROIC 13%, ROA 9, ROE 10
2. FCF 26mil, CFFO/NI 244%
3. DY 0.08
4. NTA RM1.12, P/NTA 0.63
5. Earning Yield 50%
6. EV/EBIT 2, P/BOOK VALUE 0.63


Extra notes.
1. 2013 Q1, sales okay, negative cash flow, 5mil
2. Listed for 2 years only.

KC have you done any analysis on EKSONS? Please point me to the thread if you do?

This is the data I got from EKSONS FY2012, MARCH
1. ROIC 14.9%
2. ROA 9%
3. ROE 10%
4. CFFO/IC 165%
5. DY 0.05
6. P/NTA 0.46
7. EV/EBIT 4.2
8. EY 23.7%
9. P/BV 0.46

Price is still low for this counter. Considered a GEM?

THANK YOU AGAIN KC.

Can you refer to L&G FY2012 Footnote No.42

Realized and unrealized profits. Anything affecting our EBIT?

From your KELADI post,

''The major shareholder Datuk Robert Wong or something owns a few smallish public listed companies and this man is notorious of share manipulation.''

Where do you get info like this?

Is there anyone else we should be aware of?

Thanks a lot KC.

Do you mind to do a review on HUNZPTY?

1. EBIT, what is 'fair value adjustment', and is it included inside EBIT?

2. IC, 'investment properties' & 'properties dev. cost' , is it included in IC?

3. CAPEX, again is 'investment properties' included? since it is a properties development company.

Dear KC, NTPM 2012, the income statement states all sorts of expenses. To calculate EBIT, Im only leaving out 'other operating expenses' , 'finance cost' and tax only right?

Dear KC
Questions

1. Quoted from your thread, 'In Search of Excellence'

'At the price of 48 sen now, Willow is trading at a PE ratio of just 7.7 (<20). Market Enterprise Value is only 4.6 times EBIT (<8). Price-to-book is only at 1.6 (<2). I would say a good company of Willow is selling very cheaply.'

Why do you use <8 as a guide for EV/Ebit?
Why do you use <2 for P/BV?

Just wondering how you set your limits when you value a company.


2. From annual reports where do you get the idea how much the directors are paid? from compensations and dividends? Total compensation/Revenue > 3%

thank you kc. these days we can hardly find any counters that are still cheap? Cold eye says, buy low, sell high. Is the 'buy low' period coming anytime soon?

Dear All, can anyone give comments on HOMERIZ RM0.38?

FY2012
1. ROIC 27.84%
2. FCF 19mil
3. DY 0.08
4. NTA RM0.36
5. Earning Yield 41.18%

FY2013 Q1, Q2, Q3
1. ROIC 16.31%
2. FCF 17mil
3. Sales dropped slightly, still waiting for Q4 results to reconfirm
4. NTA RM0.38
5. Earning Yield 23.15%

Extra notes.
1. Very good figures of Receivables/Revenue. Only 30 to 40 percent in FY2013 quarters
2. Young company with only 4 years of results to evaluate.

KC can you please explain to me whats the actual meaning and purpose of us calculating ROA, ROE, Current Ratio, EV/Ebit & EV/EbitDA??

''Ivory, KNM, GCB, London biscuits, Smartag, Amedia'' noted and thanks again.

I find it very hard to understand financial statements. thats why i dug my head into it and learn.

Reports are the only means of info we have to evaluate a company right? what choices do we have other than studying reports.

As mr cold eye said, reading , understanding, data collection is a must for every sound investors. I strongly believe in that too.

And i still only understand part of your KFIMA template only. Still a long way to go. Im a novice and i just started buying TDM and Faber last month.

profession? lol. im a lorry salesman

thank you. Seems like ive went too far lol. will skip this part. no point going deeper since it is unnecessary.

Can you show me the parts you usually read to avoid financial statement fraud? adjusted revenue and income? CFFO?

City trader whats your email? i ll send you my mega first excel with all the calculations. Not sure whether I did the calculations correctly.

Dear kc. Can you guide me on Trade receivable at footnote section?

Example : Mega First (MFCB) FY2012 Report page 83

1. I would like to know more about unbilled account receivables. Where to find them in page 83? what is the total amount of unbilled A/R?

2. How much of unbilled A/R is considered unhealthy? how do you set your benchmark?

3. How do they make adjustments to A/R, to increase quarter or FY revenue, operating profit and net income? I understand that accountants tend to over estimate completion of projects to increase revenue

4. On page 83, 'Advance for Don Sahong Project' & 'Advance for plantation project'. ???

5. Unbilled A/R is very common in project based companies, IE SP Setia or Trop. Unhealthy?

Note.
Percentage-of-Completion Accounting
Part 1, Chapter 2 (Aggressive Revenue Recognition)
Whats Behind The Numbers.

STAR PUBLICATIONS (M) BHD(6084)
RM2.760 +0.020 (+0.73 %)


Year 2013Q1 2012 2011 2010 2009

1. GOOD FIGURES OF ROE
ROE 2% 18% 19% 18% 12%
ROIC 2.53% 14.27% 23.52% 21.19% 19.79%
ROIC - WACC -8.72% 2.48% 11.75% 9.36% 7.94%


2. INCREASING REVENUE, MARGIN AND INCOME
Revenue 220,618 1,079,907 1,067,668 1,061,700 973,921
Margin 10% 19% 17% 18% 15%
Net Income 22838 200742 185312 190168 149633


3. FREE CASH FLOW SATISFACTORY
Free Cash Flow, 24926 146893 233434 73631 322158
CFFO/NI 134% 101% 140% 53% 226%
FCF/REVENUE 11% 14% 22% 7% 33%
FCF/IC 3% 17% 31% 9% 46%


4. PE RATIO, DIVIDEND YIELD, BOOK VALUE
PE RATIO 71.898 9.156 12.462 13.018 16.229
Dividend Yield 0.00 0.07 0.06 0.18 0.05
Payout ratio 0% 64% 71% 231% 88%


5. BOOK VALUE, NET TANGIBLE ASSET, EV
Net asset per share 1.49 1.54 1.37 1.37 1.70
Price/NTA 1.71 1.67 2.31 2.39 1.87
EV/Ebit 63.87 9.79 8.10 9.32 8.98
EV/EbitDA 63.87 7.40 6.73 8.44 7.07


6. PRICE HAS DROPPED A LOT IN SINCE YEAR 2012.


ANY COMMENTS? SEEMS OKAY TO ME.

Thank you for your clarification KC. I supposed everyone here can call you si fu. We will have a lot more to learn from you.

Currently digesting your template still, DCF model and strategy part.

KC, just to reconfirm my own figures, please guide me.

regarding your MFCB post, year 2012 report
1. You got your FCF/IC = 23%. What is your IC figure?
Here is mine. I got only 19%
248251+48216+10812+69442+9158+142466-793-51950=
475602

2. What is your capex figure for year2012?

3. Common Stock = Share capital, right?

4. How do you get the PE ratio and Share Price of previous years? By estimation? In order to get DY, Market Cap for previous years?

5. Also, what is your Ebit figure?
My Ebit is 119,885

Thank for helping,

TeckChuan

HONG LEONG INDUSTRIES BHD RM 5.20 23/07/2013

BASED ON FY2012 REPORT
1.ROE = 11%

2. CFFO/NI = 102%
FCF/REVENUE = 6.45%
FCF/IC = 19.10%

3. DIVIDEND = 0.22
DY = 0.04 (DIVIDEND/OLD PRICE)


BASED ON 'klsepsp.com/p/financial-checker.html'
4. PE RATIO = 12.90
EPS 0.40
PRICE 5.20

BASED ON FY2013 QUATER 3
5. NTA = 3.68
PRICE/NTA = 1.41

I have noticed that figures might change slightly every year. For example Net profit is 15000 in FY 2011, but Net Profit of 2011 changed slightly to 15200 in report 2012. Same goes to CFFO and the rest.

Use the updated figures in the latest report perhaps?

Thanks kc. Found the book. Ill read up ASAP.

Thank you keanpoh. Thanks kc. I have no accounting basics. At all. Most of the figures I took blindly following kc s formula in his templates. I need to start picking up accounting basics

Press "Control + F". Locate "earnings per share" at the bottom notes section. There, you will find "weight average number of shares"

Dear CityTrader

Check 'Income Statement'

Profit for the financial year 57,091

Profit attributable to:
Owners of the parent 34,490
Non-controlling interests 22,601

YTLE FY2012

Ahem. Mistake. EPS = net profit to common shares / share outstandings
34490/1345328

YTL E-Solution BHD. RM0.70

Pros.
1. Profit margin is extremely high.
2. Revenue, Net income, FCF improving every year since 2009
3. High payout ratio
4. ROE ROA improvement
5. Piotroski scored average 7.3 for FY2010, 11, 12
5. Cheap share price.

Notes.
1. ROIC off the chart for FY2012 & FY2011.

2. In FY2010, there was a Fixed Deposit of 175M, which I included into Invested Capital. 'Cash & Bank Balance' 800K.

3. FY2012 & FY2011, no Fixed Deposit, but Cash and Bank Balance shot up to 180M. Question. Do we need include 'Cash and Bank Balance' into Invested Capital? Cause we usually dont right?

Any comments?


YTLE RM0.7
Year 2012 2011 2010 2009
Revenue 86,054 74,246 44,067 36,508
Cost of sales 5,517 11,391 17,424 16,116
Gross margin 94% 85% 60% 56%
Margin 66% 68% 29% 8%
Net Income 57091 50533 12860 3092
Net profit to common share 34490 35706 8831 4151
No. of shares 1345328 1345328 1345328 1345377
EPS 0.026 0.027 0.007 0.003
Dividend 0.019999584 0.019999584 0.01 0.00
Payout ratio 78% 75% 124% 73%
Net asset per share 0.15 0.13 0.13 0.12
Operating cash flows, CFFO 56,350 44,681 28,552 6,813
Capex -520 -592 -629 -37608
Free Cash Flow, FCF 55830 44089 27923 -30795
CFFO/NI 99% 88% 222% 220%

Total Equity 227,756 198,901 192,436 184,779
Total Common Equity 202,553 181,393 170,923 164,512
Common Stock 135,000 135,000 135,000 135,000
ROE 17% 20% 5% 3%

Total Asset 234,952 205,954 206,482 196,280
ROA 24% 25% 6% 2%

Long Term Borrowings 0 0 21 121
Short Term Borrowings 0 21 100 98
Total 0 21 121 219

Current Asset 230,603 201,692 197,391 186,107
Current Liability 7,194 7,009 14,025 11,124
Current Ratio 32.1 28.8 14.1 16.7

EBIT 77,018 64847 16689 6822
Profit Before Tax 77,018 64,843 16,676 6,797
Tax 19,927 14,310 3,816 3,705
Tax Rate 25.87% 22.07% 22.88% 54.51%

NOPAT=EBIT*(1-tax rate) 57,091 50,536 12,870 3,103
INVESTED CAPITAL 15910 14746 190781 184964
ROIC 358.84% 342.71% 6.75% 1.68%

Total Equity + Debt 227,756 198,922 192,557 184,998
Cost of Equity 12% 12% 12% 12%
Cost of Debt 8% 8% 8% 8%

WACC 12.00% 12.00% 12.00% 12.00%
ROIC - WACC 346.84% 330.71% -5.25% -10.32%

I have seen financial statements where the 'Group' makes money but the 'Company' were at a huge amount of loss. Same goes to its cash flow.

Does the 'Company' side of balance sheet, cash flow and income statement has any concern with our evaluation? Or should we only look at 'Group' statements?

Non Current Assets

1. Land held for property development
2. Intangible assets
3. Investments in subsidiaries
4. Other investments

Mr kc are these considered invested capital?

KC, how do you get WACC? Based on Focus Point 2012