Posted by digiuser016 > 2014-02-02 22:35 | Report Abuse

And Kcchong,

How do you evaluate growth stocks? If I am not mistaken, Kfima is a threebagger/fourbagger for you since you started investing this stock a few years ago. Mind to tell me your experience on evaluating a growth stock?

Posted by anbz > 2014-02-02 22:56 | Report Abuse

Deposits for the Group of approximately RM167,000 (2012: RM163,000) are held on lien for banking facilities
granted to a subsidiary.

just like i pasted before...u are right...silly me copied and pasted it right..but read it wrong...ok my mistake...

statitistic and calculus are easier...when i studied them before...don't know may be i'm becoming old already to learn...still want to learn...well math had nothing to do with bursa..this is actuary much more difficult

ok kcchong selesai masalah..only 3 problems now

1. esos
2. decreasing profit (also fimacorp with decreasing profit)
3. not enough upward force
----

kcchong...i'm sorry if my questions make u angry...don't get me wrong....it is ok if u want to scold me...i admit it i'm quite dumb....so don't get me wrong....if i'm a girl ..u would kiss u man...hehe...however i'm with u now...for kfima..theoretically...

not on board yet...waiting for my personal loan and lower/optimum price

so kcchong whatabout knusfor...just for discussion? using your 5 rules...of...forgot ...or any method?

Posted by anbz > 2014-02-02 23:00 | Report Abuse

UM 1999

Posted by kcchongnz > 2014-02-03 00:19 | Report Abuse

Posted by digiuser016 > Feb 2, 2014 10:18 PM | Report Abuse

Kcchong, the books recommended by you are good(the most important thing uncommon sense for the thoughtful investor> more on philosophy, five rules for succesful investing> more on technical sides, teach you how to evaluate a stock in different industry). Can you recommend more books? Thanks.

I like this guy digiuser016. He is willing to learn, not talking about share price everyday, go up ah, go down ah etc, like most people. Yes reading good books is very important to improve oneself.

I have a postgraduate degree in Master of Finance with distinctions from NZ. Sorry not boasting here. I thought I knew a lot about fiance and investment. Actually it was not true. What we learn in university are all academic. I talked a lot of nonsense about efficient market, CAPM, Sharpe ratio, efficient frontier, Black-Scholes OPM etc. Actually they are not much use in investing in the stock market. The only subject which I think was useful is applied finance, where I learn some excel skill, valuations and some useful practical corporate finance.

What I found most useful is to stand behind the shoulders of investing giants; Warren Buffet, Peter Lynch, Philip Fishers, Charlie Munger, Seth Klarman, Joel Greenblatt, Howard Marks etc. Read their books and learn their philosophies. Apply them using what you learn either from University, or through quantitative finance books or internet resources say from Professor Aswath Damodaran, Jae Jun of Old School Value etc on valuations. Then I believe one would improve his chance of better return from investing in the market. Just my opinion.

Recently I read another book, "The Manual of Ideas" by John Mihaljevic. A pretty good book too where one can find some ideas of what kind of things to invest.

Posted by anbz > 2014-02-03 00:45 | Report Abuse

u should read Quran...in english ...u'll be surprised...if ever u are willing...it will not harm u friend

Posted by kcchongnz > 2014-02-03 00:47 | Report Abuse

anbz, i am your senior in UM, many years before you. so allow me to give you some advice.

Give respect to elder people, especially one who has contributed a lot to the society. You have no right to criticize him, as he has never say anything bad about you. And I seriously do not think he is trying to promote his stock so that he can sell high to anyone in i3. i3 doesn't have that clout. And he doesn't need to do that.

Ok back to business.

ok kcchong selesai masalah..only 3 problems now
1. esos
2. decreasing profit (also fimacorp with decreasing profit)
3. not enough upward force

My answers to you has nothing to do with Kfima, and I am not promoting the stock here, as I have said, i3 has no clout to jack the share price up for me to sell. the answers apply for general cases.

1) I have explained about this many times to you in i3 but you just refused to listen. ESOS is a way for the company to align the interest of the shareholders and the management. The employees are often rewarded with ESOS for them to work hard and increase the value of the company, and hence the stock price. With ESOS, employees are also rewarded, so are the shareholders when the company does better in its performance. As long as it is not abused, ESOS is a good move for the company.

2) Decreasing profit
No company can increase its profit every year. There is this economic cycle, boom and bust. But in the long term, good companies will have their profit improving, but in a long-term basis. there is still up and down in the short-term of 1 year, two years or even three years. As palm oil contribute about 30% of its revenue and profit, and as plam oil prices were down the last couple of years, it is inevitable that Kfima's bottom line will be affected. Do you realize that many plantation companies have their profit slashed by more than 50%, some even went into losses, but Kfima still managed to earn good profit from palm oil?

3) Not enough upward forces? Here my advice is again, don't every time talk about share prices if you are really doing investing and not speculating. Buy good companies well (at cheap price)and then wait for the market to realize it. In the short term (even a few years), the market is a voting machine, but in the long run, it is a weighing machine.

Posted by AyamTua > 2014-02-03 00:53 | Report Abuse

kcchongnz: always love the way you explain things, brother .. God Bless you

Posted by anbz > 2014-02-03 01:06 | Report Abuse

ok lah kcchong tq...i will come ...waiting for my personal loan and lower price..tq boss

--
but that koon he creates many blogs with arrogance in his title...saya tak tahan...but u are right..i should stop...for now...hehehe

Posted by kcchongnz > 2014-02-03 09:07 | Report Abuse

此子可教也

anbz, as I am many years your senior in UM, I want to give you another piece of advice here again.

Try not to get yourself into debts. The only things which you should borrow money to do is buying a house as your permanent shelter. Or may be a car if necessary. The Crown Finance for Christians also teach their followers to avoid debts at all costs.

I have been there, done that. When I first came up to work, I have no money left after all those debts; car loan, co-operative loan, personal loan from friend, credit card debt etc. Despite earning more than four thousand ringgit a month in today's money as a bachelor, I have no money to give to my parents as a token show of gratitude. Yes debt is a killer to your financial well being.

I also encourage you to read my blog below regarding leveraging in investment and try to understand what I am trying to convey:

http://klse.i3investor.com/blogs/kcchongnz/44344.jsp

Posted by yfchong > 2014-02-03 12:45 | Report Abuse

Today is holiday, may I have your opinion., should I release the poor performing mutual fund n redivert to
1. Kfima
2. Padini

Both of the stock have double digit ROE., both also pays good dividend many thks

Posted by anbz > 2014-02-03 23:33 | Report Abuse

now ...today dow jones fell again 146 points...just like friday..similar number!!!...if goes like that for the closing...and also tomorrow...i might get everything cheap in bursa

Posted by kcchongnz > 2014-02-04 08:47 | Report Abuse

Posted by yfchong > Feb 3, 2014 12:45 PM | Report Abuse
Today is holiday, may I have your opinion., should I release the poor performing mutual fund n redivert to
1. Kfima
2. Padini
Both of the stock have double digit ROE., both also pays good dividend many thks

yfchong, what do you mean by "poor performing mutual fund" of yours? Did it under-perform the market? If so then you were unlucky to have picked the wrong fund as in the article below, the average return of the unit trusts investing in Bursa out-performed the broad market (to my surprise). Please read my article below:

http://klse.i3investor.com/blogs/kcchongnz/45121.jsp

My view is that one shouldn't base the performance of the fund for short-term horizon. The ability of the fund managers is important, whether they have been consistent alpha achievers in the long-term. Short-term out-performing or under-performance is not the true indicator of their ability.

Whether you should switch your fund and directly invest in Kfima and Padini, I really don't know as I have no crystal ball in front of me to see the future share prices of them. Bear in mind the pitfall of individual investors as described in the same article above.

But you have done some homework on them about their ROE and DY. You have to make your own judgement and I believe you are capable of doing that based on the above. You can also read my writeup above those two stocks in the link below but be forewarned that in the equity market, the outcome may not be the same as expectation, especially in the short term.

http://klse.i3investor.com/blogs/kcchongnz/45203.jsp
http://klse.i3investor.com/blogs/stock_pick_challenge_2013_2h/34118.jsp

Posted by yfchong > 2014-02-04 14:41 | Report Abuse

Bro KC Chong. First of all I would like to wish happy new year n may this galloping horse year brings abundance of fortune joy n health.
The mutual fund I hold for 3 years cagr 0.XX, <0.3%.Therefore I can conclude its below market average.
At least I can accumulate to make switching position during disturbed market pace n emotion.
Today KLCI responded but both of the stock named still rock solid taught got panic selling.
I do like your article n give forms of education. Appreciate to share more if you have the time.

Posted by kcchongnz > 2014-02-04 17:35 | Report Abuse

Posted by digiuser016 > Feb 2, 2014 10:35 PM | Report Abuse
And Kcchong,
How do you evaluate growth stocks? If I am not mistaken, Kfima is a threebagger/fourbagger for you since you started investing this stock a few years ago. Mind to tell me your experience on evaluating a growth stock?

Yes, Kfima is one of the stocks which provided me with the best returns over the last 5 years. Despite its share price lethargy for the past twelve months, the 5-year CAGR is still more than 20%, double that of the broad market, and with low risk.

When I bought Kfima 4-5 years ago, i bought it for its value against a low price offered. In another words there was plenty of margin of safety investing in this stock then. It had been a fantastic growth stock before then, but I didn't have to pay for the growth. Meaning that when I estimated its intrinsic value then, I did not use a high growth assumptions, but just a normal one. As it business grows, I see its fundamentals have improved a lot and hence it is still a "good stuff, cheap" at the present price.

Investing in a growth stock is definitely enticing, absolutely. But growth and value is inseparable, and you need to know what is the intrinsic value, or what comparative valuations you are talking about, in order to invest wisely, not merely saying it is a high growth stock. Not all high growth stocks are good investment. Similarly, not all good companies are good investment, unless its price is low as compared to its value.

For example you intend to invest in a high growth plantation stock which has planted a lot of trees. You know the age profile of the trees, and you can estimate the production quite closely. From there you have to estimate your normalized gross profit, and then deduct operating expenses to arrive at your normalized operating profit for a number of years. From there you have to deduct what is due to the debt holders, the minority interest etc, to arrive at what is due to the common shareholders.

I don't really know how one can judge if a stock is undervalued or not just by saying there is growth in profit prospect without giving numbers. How much is the growth? How much is it translated to profit? How much is it belong to shareholders and in per share basis, etc, bearing in mind that these cash flows have to be shared among all stakeholders?

Yes, valuing a low growth or a high growth stock is the same. You have to make estimates of its future growth in revenue, and use the normalized margin to arrive the cash flows, and discount those cash flows back to the present value, and then compared with the share price. What is the margin of safety. Or some other form of valuations, with numbers.

Posted by moven00 > 2014-02-04 18:06 | Report Abuse

KCChong,

First of all Happy CNY to you.

Can I ask for any article on your croic calculating sharing.

Roe and DY I already learn and understand.

Many thanks.

Posted by kcchongnz > 2014-02-04 18:44 | Report Abuse

CROIC or cash return on invested capital is simply the ratio of Free cash flow over invested capital.

CROIC=FCF/IC

FCF=CFFO-capital expenses

IC=PPE+net working capital

Net working capital = receivables+inventories-payable

As capital expenses are lumpy, take the average of CROIC over a few years as a representative figure.

Posted by anbz > 2014-02-04 19:22 | Report Abuse

dow jones actually closed very2 low 15,372.80-326.05 (-2.08%)

Posted by kcchongnz > 2014-02-04 22:10 | Report Abuse

Posted by digiuser016 > Feb 2, 2014 10:35 PM | Report Abuse
And Kcchong,
How do you evaluate growth stocks? If I am not mistaken, Kfima is a threebagger/fourbagger for you since you started investing this stock a few years ago. Mind to tell me your experience on evaluating a growth stock?

For me evaluating growth stock or value stock is the same. For example using a hybrid DCF, if I assume Kfima's earnings will grow by 12% a year for the next 5 years, and its dividend by 10% each year with the following data.

Latest earnings per share $0.2864
Initial dividend $0.080
Initial PER 6.7
Dividend growth 10%
5-year Earnings growth 12%
Earnings growth after 5 years 5.0%
Earnings in 5 yrs $0.505

The dividends and their discounted value using a discount rate of 10% are shown as below:
Year 0 1 2 3 4 5
Dividend XXX $0.09 $0.10 $0.11 $0.12 $0.13
PV of dividend XXX $0.080 $0.080 $0.080 $0.080 $0.080
Sum of PV of dividend 0.400

And assuming you want to sell it after 5 years and the market gives a PE ratio of 10 to it:

EPS after 5 years, RM 0.530
PE ratio 10.0
Price 5.30
PV of price 3.29

Total PV 3.69
Price now $1.92
Margin of safety 48%

As you can see the total present value of the dividends and selling price is RM3.69. That is the intrinsic value of Kfima.

If you want to estimate the intrinsic value of a growth stock which does not have much earnings or cash flow at present, it is much harder and will involve a lot more tough assumptions. If you are interested, you can refer to the link below:

http://aswathdamodaran.blogspot.com/2011/11/are-you-ready-to-value-groupon.html

Posted by yfchong > 2014-02-05 08:04 | Report Abuse

Bro KC Chong How do you get the figure PV of price 3.29. ? Is it comes from EV/EBIT ?? thks for sharing .

Posted by kcchongnz > 2014-02-05 08:27 | Report Abuse

Posted by yfchong > Feb 5, 2014 08:04 AM | Report Abuse
Bro KC Chong How do you get the figure PV of price 3.29. ? Is it comes from EV/EBIT ?? thks for sharing .

Kfima's EPS was assumed to grow at 12% for the next 5 years, and then 5% after that. The 28.64sen EPS will grow at 12% to 50.5 sen [28.64*(1+12%)^5}.

You intend to sell it after holding 5 years. At that time, it is expected that it will earn 53 [50.5*(1+5%)] sen the coming year (6th year). And assuming the market awards a PE ratio of 10. So the selling price would be 5.30 (0.53*10). 5.30 is worth 3.29 at today's money at a discount rate of 10%. 5.3/(1+10%)^5.

Posted by puripuri > 2014-02-05 08:39 | Report Abuse

KC Chong: Regarding the CROIC, how do you benchmark it? >10% or >15% is considered passing your requirement?

Posted by kcchongnz > 2014-02-05 09:58 | Report Abuse

Posted by puripuri > Feb 5, 2014 08:39 AM | Report Abuse
KC Chong: Regarding the CROIC, how do you benchmark it? >10% or >15% is considered passing your requirement?

Good question. How I wish I can just give you a one word answer, but no, I can't. This is how I view it here.

If I invest in a stock, say I am happy to pay for something with a PE ratio of 10, for simplicity sake. But that E is just accounting number, not hard cash. Moreover most business needs to reinvest. So the actual cash left over is normally less than E, and often it is much less than that.

Free cash flow is hard cash received net of outflow, and it is after capital expenses for more future growth in earnings, presumably. So I would be happy enough is FCF is more than 5% of invested capital as it is hard cash left over after all expenses. 10% would be great. If it is 20%, I would pawn my house, my car, Jewelry etc and put all the money into the stock. No, just kidding but at least that stock will form a heavy weighting in my portfolio.

Again it depends on industry. Light asset type of business like Jobstreet, Prestariang, Datasonic etc normally have higher CROIC. But for conventional business like Kfima with average of more than 20% for the last 5 years is very rare.

Posted by digiuser016 > 2014-02-05 12:05 | Report Abuse

Hi Kcchong,

In the sixth year, the eps will grow to 53 sen. Why you discount only 5 years instead of 6 years?

5.3/(1+10%)^5.

Posted by digiuser016 > 2014-02-05 12:20 | Report Abuse

I have a postgraduate degree in Master of Finance with distinctions from NZ. Sorry not boasting here. I thought I knew a lot about fiance and investment. Actually it was not true. What we learn in university are all academic. I talked a lot of nonsense about efficient market, CAPM, Sharpe ratio, efficient frontier, Black-Scholes OPM etc. Actually they are not much use in investing in the stock market. The only subject which I think was useful is applied finance, where I learn some excel skill, valuations and some useful practical corporate finance.

If a person can fully understand Black Scholes model and derive it( he needs to understand stochastic calculus, ito lemma, brownian motion and etc), for sure he can understand the method taught by you.

What I found most useful is to stand behind the shoulders of investing giants; Warren Buffet, Peter Lynch, Philip Fishers, Charlie Munger, Seth Klarman, Joel Greenblatt, Howard Marks etc. Read their books and learn their philosophies. Apply them using what you learn either from University, or through quantitative finance books or internet resources say from Professor Aswath Damodaran, Jae Jun of Old School Value etc on valuations. Then I believe one would improve his chance of better return from investing in the market. Just my opinion.

Among all the authors, I think Joel Greenblatt's you can be a stock market genius and the little book thatstill beat the market are my favourites. Peter Lynch's books suit for beginners. The best book about philisophy is The Most Important Thing: Uncommon Sense for the Thoughtful Investor.

Posted by kcchongnz > 2014-02-05 14:34 | Report Abuse

Posted by digiuser016 > Feb 5, 2014 12:05 PM | Report Abuse
Hi Kcchong,
In the sixth year, the eps will grow to 53 sen. Why you discount only 5 years instead of 6 years?
5.3/(1+10%)^5.

My assumptions are a 5-year holding period, and PE at year 5 is based on forward earnings. Discount is still for the end of 5 year, not 6.

You can use last financial year EPS of 50.5 sen, nothing wrong, except you get a slightly lower intrinsic value.

Posted by yfchong > 2014-02-06 12:04 | Report Abuse

Bro kcchongnz, thks for your pointers, you have help me to make my cross road. Thks

Posted by smallboy > 2014-02-06 12:13 | Report Abuse

Kcchong thx for recommend the five rules for successful stock investing by pat dorsey! Learned alot through this book!

Posted by yfchong > 2014-02-06 15:38 | Report Abuse

Information on Joel, Seth Klarman and A. Damodaran obtained, now is the time to digest and make alignment and rules. Lol like going to lecture room and sitting for examination....

Posted by musang_foxking > 2014-02-06 16:07 | Report Abuse

another 98,000 units of ESOS at 1.48 exercised!!!
http://www.bursamalaysia.com/market/listed-companies/company-announcements/1532929

go go go staffs of kfima

Posted by Overweight > 2014-02-06 16:11 | Report Abuse

good counter but will buy back again only when ESOS end.

Posted by digiuser016 > 2014-02-06 17:36 | Report Abuse

Hi Kcchong, I have one question.

From what I read on Five rules for successful investing, the author advices the investors to think twice for the company with shareholding consistently increase by more than2 percent per year without acquisitions. What do you think?

Generally I think giving a low number of share options can motivate management.From my rough calculations, in 2012 and 2013, the Kfima management exercised more than 2 percent of share options out of the total share outsanding. What do you think?

I think Kfima is has solid fundamentals( high ROC, high earning yields, diversified business, constant growth rate, high valuation).

Posted by musang_foxking > 2014-02-06 22:16 |

Post removed.Why?

Posted by musang_foxking > 2014-02-06 22:18 |

Post removed.Why?

Posted by chongkonghui > 2014-02-10 12:04 | Report Abuse

ESOS to end soon.... after 2014... or 2015.... or 2016....

Posted by Fat Cat Tim Buddy > 2014-02-10 12:05 | Report Abuse

they can always issue new esos right? need how many % of shareholders vote to get it approve?

Posted by musang_foxking > 2014-02-11 00:45 | Report Abuse

esos for staffs...whom are also relatives of directors...tolong menolong haha

Posted by smallboy > 2014-02-11 15:14 | Report Abuse

Drop to @1.92 support line please?

Posted by bigFAT > 2014-02-11 19:19 | Report Abuse

1.51 best buy

Posted by bigFAT > 2014-02-11 19:25 | Report Abuse

KUMPULAN FIMA BERHAD - A Moderate Year Ahead
Author: PublicInvest

KFima‟s 1QFY14 results were subdued owing to challenges experienced in the respective divisions, with revenue and earnings meeting 22% and 18% of our full year estimates. Revenue registered RM122.6m (-3.2% YoY, -8.0% QoQ), marginally lower due to lower revenue generated by the Food division. Net profit for the quarter declined to RM14.6m (-29.5% YoY, -1.7% QoQ).

Continuing pressures. Manufacturing of security documents and currency notes would face headwinds this year on pressures of price competitiveness coupled with the slump in demand while capacity was increased.

A flat year. Plantation saw higher sales and volume, translating to PBT improvements, however still hindered by low CPO price . Current yields are from fully matured trees from Kalimantan which make up only a small 25% of top-line and 14% of bottom-line, with more contributions only in 2 to 3 years from maturing planted trees in Miri, Sarawak.

Potential loss in demand. Bulking is expected to be supported by chemical and oleo chemical industry products, however demand could be affected this year with the anticipation of variations in the Malaysia Derivatives Exchange (MDEX) edible oil tender transshipment businesses which arise from a differential in export duty structures between Malaysia and Indonesia.

Food remains challenging. A challenging year ahead as fish catch bought in Papua New Guinea is purchased in US dollars, exposing the group to further currency risks. The depreciation of Kina against US dollar thus could potentially intensify forex losses. With some respite, tuna orders from Europe are expected to increase by September.
---
TP RM 1.51 leads to PER at 14.0 for year 2014

Posted by kcchongnz > 2014-02-11 20:30 | Report Abuse

I just wonder what is the motive of somebody who copied and pasted an investment report of Kfima which is outdated by half a year, and at the same time changed the content of the report drastically regarding its valuation?

Why does he want to do that malicious act? Very curious.

Posted by bigFAT > 2014-02-11 23:21 | Report Abuse

this year PE will be around 14.0

ROE (%)

2011 =16.16

2012 =14.83

2013 =12.78

Trailing Twelve Months=11.64

see the pattern?

extrapolation for ROE in 2014 will not be in 2 digits anymore
---

it will only be in 2 digits or more when u include digits after decimal

and sorry to upset kcchong...we're not talking about quarter performance...we're talking about annual performance...so the report is soundly valid. Please show us where did i changed the content of the report drastically regarding its valuation?

and the talks about malaysia currency drops is good for palm oil players, unfortunately business in papua new guinea involves buying using US currency which translated into around 10% increase in cost...and there's no doubt that more cost increase will occur

and please don't forget that earning per shares has decreases 7 quarters in a row...and don't tell us that no company can moves up in straight line pattern.

and don't compare this kfima is resembling other palm oil stocks performances...so no big deal in its poor performances?i thought u value this more than other palm oils stocks...so why telling us about the similarities?

it is like a father telling his son's to stop the rot...and the son replies : even his elder brother doing the same

so the father says: if that is so...then it's ok

i thought this is a gem stock? so why a gem being compared to stones? is it neccesary?

yes it's a gem before...but now it's only an ORDINARY stock that has pasts it's fortunate path...long time ago

Posted by kcchongnz > 2014-02-12 01:51 | Report Abuse

Don't have say sorry that you have upset me. Why should I be upset? Kfima does not belong to me. I am just an investor.

By the way, how did you get the target price of RM1.51 extracted from the PublicInvest report as shown in your statement below? What is your estimated forward (or backward or whatever)earnings for Kfima?

"TP RM 1.51 leads to PER at 14.0 for year 2014"

First of all you should look at return of invested capital rather than return of equity as Kfima has a lot of excess cash. ROE can also reduce if E increases with high retained earnings (which is good), even if earnings increases (which is also good).

There was a reduction of ROIC just last year from 22% to 17%. Before that ROIC has been increasing steadily for more than 6 years. A reduction in return of capital from a high level (22%) doesn't mean the business is no longer good. More important is the marginal ROIC higher than the costs of capitals? That will show if the company has allocated its capital properly.


"and please don't forget that earning per shares has decreases 7 quarters in a row...and don't tell us that no company can moves up in straight line pattern."

Are you sure EPS decreases 7 quarters in a row as shown in your statement above? And show us which companies, especially plantation companies which have its EPS goes up in a straight line pattern?

Posted by houseofordos > 2014-02-12 09:07 | Report Abuse

This is the actual report which was omitted from the Public Invest Research article

"Undervalued. Having met our estimates last year and assuming the same for FY14F, KFima is deserving of a higher valuation. The group is trading at 6.8x PE multiple despite the group encompassing 5 core business segments. KFima has been trading on an uptrend post elections, but has lost its momentum only from softer market sentiment."

TP is RM2.45 not RM1.51.

Posted by bigFAT > 2014-02-12 09:36 | Report Abuse

just like what i said...please do not compare with other plantation company

Posted by bigFAT > 2014-02-12 09:40 | Report Abuse

that was publicbank...not publicinvest...see the different?

Posted by bigFAT > 2014-02-12 09:41 | Report Abuse

publicbank has invested in kfima...what do u expect?

Posted by kcchongnz > 2014-02-12 09:52 | Report Abuse

You copied and pasted an outdated report from an investment bank, changed their target price from 2.45 to 1.50, but can't explain how a PE of 14 leads to your changed TP of 1.50. What is your purpose?

It has nothing to do whether it is for Kfima or any other company, but a malicious act, attempting to mislead others.

Posted by gark > 2014-02-12 10:55 | Report Abuse

According to mr Fat brain logic...

Backward count.. if FY14 PE 14x = RM 1.50 valuation so expected EPS must be 1.50/14 = 0.107 for the entire year...

The recent 1HFY14 already beat that figure.... with EPS for 1/2 year already 0.114

Biggest joker of the year...

Posted by coolio > 2014-02-12 11:07 | Report Abuse

Hahah..remembered Kcchongnz posted an article on Issac Newton quote. "I can calculate the motions of heavenly bodies, but not the madness of people"

Posted by bigFAT > 2014-02-12 22:36 | Report Abuse

big amortisation is on the moves...and rupiah fell to a very low level and upside is unlikely for at least 6 months...kfima moneys value placed in indonesia has fell extremely. and 10.7 cents will not be a surprise for the whole 2014 . and indonesian gov is just going to increase taxes especially for mining and plantation sectors. Will not be surprised also when tax and duties being increased for upstream industries being forced like what happening now to mining industries. indon is a very protecting country in terms of its sovereignty and resources. And they seems to believe that foreigners will still need to come and invest there. So kfima might need to invest their rupiah for upstream/factories/logistic/ machineries/ staffs-profesional included. All talks about cash...it will be depleted in no time. For indon gov this is one important and urgent moves considering foreigners are now shy and reluctant to invest there. Yet their gov responded by also being reluctant also. And they're strong enough not to be annoyed by foreigners perceptions because until now still they're not doing any wrong moves like india...everything is under control . So Indo gov just have to bite some from ready-available foreigners in indon. And foreigners must abide for them to be succesful here in future...i say it again...future...not now. Iif kfima can stands all of these...kfima will be a semi-giant in plantation industry in indon. but it will take years before they can reap any profit.

So PER for 2014 at 14.0 is maintained . TP RM 1.51