5. • Operations generated cash
flow
• In 2015, cash generated from
operations is RM23 million
• Net proceed from buy & sell
of investments is RM8
million
• RM32 million used on capital
expenditure
• RM8 million paid as dividend
29
13
22 23
(5) (6) (9)
(32)
0
0
(11)
(8)
0
0
0
8
7
(35) (8)
10
(50)
(40)
(30)
(20)
(10)
0
10
20
30
40
50
FYE 2012 FYE 2013 FYE 2014 FYE 2015
Millions
Source & Application of Cash
Net cash fr op. Capex Dividend Paid Investment Net Cash/ Debt Movement
6. • Net cash is RM6 million
• EDR with 100% equity 0%
net debt. (Gearing is 0)
• No borrowing risk. Can ride
through bad time.
156
102 100 107
153 161 184
29%
23%
84%
80%
100% 100% 100%
71%
77%
16%
20%
0% 0% 0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(500)
(400)
(300)
(200)
(100)
0
100
200
300
FYE 2009FYE 2010FYE 2011FYE 2012FYE 2013FYE 2014FYE 2015
MillionsEquity Debt Ratio
S/hs’ equity Net Debt Equity % Debt %
23
27
23 23
(37)
(8)
(4)
(8)
(12)
(10)
(2)
(9)
(26)
9
17
6
(60)
(50)
(40)
(30)
(20)
(10)
0
10
20
30
40
FYE 2012 FYE 2013 FYE 2014 FYE 2015
Millions
Cash, Equivalent & Borrowings
ST Investment Deposit & Cash ST Borrowings LT Borrowings Net Cash Equivalent
7. • 2015 price ranged
between RM0.57 &
RM0.32 where PERs are
between 20x & 11x
• This graph gives a good
gauge on price range
0.31
0.28
0.29
0.28
0.39
0.57
0.21
0.12
0.18 0.20
0.23
0.32
0.26
0.20
0.24 0.24
0.31
0.44
0.18
0.23
0.22
0.23
0.37
0.49
0.13
0.13 0.14
0.20
0.21
0.24
-
0.10
0.20
0.30
0.40
0.50
0.60
FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 FYE 2015
Share Price
Highest price Lowest price Average price Closing price NA/share
8. • With growth, 13x – 14x is a fair PER in this
market conditions
• A better EPS is expected in the future
• At RM0.44, the dividend yield is 3.2% which is
mediocre. DPS’s YOY growth is 2% since 2013
- -
14.1
10.6
16.2
20.4
- -
8.7
7.5
9.5
11.4
- -
11.4
9.1
12.9
15.9
- -
10.4
8.9
15.6
17.7
0.1000
0.1200
0.1400
0.1600
0.1800
0.2000
0.2200
0.2400
-
5.0
10.0
15.0
20.0
25.0
FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 FYE 2015
EPS
PE Ratio
High PE Low PE Avg PE PER EPS
4.7%
2.6%
2.4%
0.0% 0.0% 0.0%
6.7%
4.4%
4.3%
0.0% 0.0% 0.0%
5.5%
3.3%
3.1%
0.00% 0.00% 0.00%
5.65%
2.70% 2.76%
0.0130 0.0100 0.0135
0.0000
0.0500
0.1000
0.1500
0.2000
0.2500
0.3000
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
FYE 2010 FYE 2011 FYE 2012 FYE 2013 FYE 2014 FYE 2015
DPS
Dividend Yield
Low DY High DY Avg DY Div Yield DPS
9. • Fair price range between 0.37 – 0.46.
Lower is bargain.
• Dividend yield 3.0% & above which
is not really attractive in current
market conditions
• Current price is at fair value
• Wait for a while
Notes:
• Report dated 19 Sep 2015 (Share Price RM0.44)
• Financial year end is 30 June 2015
• Par value at RM0.10
• Valuation is subjective. It changes with new
information, i.e. announcements, quarterly report,
conversion of warrants
http://stockinvesting.financialplanningmalaysia.com/
* Dividend Growth model with dividend growth at 2%
** Based on fair price in normal market conditions when PE is 15
F'cast
EPS
F'cast
DPS
Est
Growth
Fair price
@ PE 15
0.0321 0.0138 2.0% 0.48
Date: 19/9/2015
Price Price
(MYR) PE Ratio
Dividend
Yield
Dividend
return *
Capital
gain **
0.55 17.1 2.5% 4.5% -12.4%
High 0.52 16.2 2.6% 4.6% -7.3%
0.49 15.2 2.8% 4.8% -1.6%
0.46 14.3 3.0% 5.0% 4.8%
Fair 0.43 13.4 3.2% 5.2% 12.1%
0.40 12.4 3.4% 5.4% 20.5%
0.37 11.5 3.7% 5.7% 30.3%
Bargain 0.34 10.6 4.1% 6.1% 41.8%
0.31 9.6 4.4% 6.4% 55.5%
0.28 8.7 4.9% 6.9% 72.1%
0.25 7.8 5.5% 7.5% 92.8%
0.22 6.8 6.3% 8.3% 119.1%