KFIMA has just release its 4Q result, giving an EPS of 4.68sen comparing to its corresponding Q of 6.39sen which is about 26% decline but however the total financial year ended 31/3/2010 increased by 27% giving total of an impessive EPS of 22.32sen.
Simple FV calculation :-
PE = 0.89/0.2232 = 3.98sen
FV = 5 x 0.2232 = RM1.11
Have not gone into detail study of its 4Q result, briefly, the revenue increased by over 50% but the profit declined by 26% ??? Something missing someway ?? Will do an update once i got the detail information of its 4Q. No matter how, its total fiscal result is still an impressive one as it registered first time above 20sen per share, which is the highest thus far and the propose 5sen dividend is 2sen higher than previous 3sen, that represent a total increase of 67% in dividend and represent a 5.6%p.a DY, much much higher than FD right ? The dividend payout ratio is only about 22% in which i think is relatively low, hopefully, they might increase the dividend payout ratio in future if the remarkable result is continue to be attained.
Update : Have just gone through the report. The decline in profit for this quarter is due to it income tax expense where they get a deferred tax benefit in prior quarter and a higher tax rate this time round. Other factor could be due to its higher cost of sales by additional 12%.
14 comments:
Sold off all GENM 2.64-2.65, realize small transaction cost loss in first portfolio, but realize handsome intraday gain on second portfolio
maybe for KFIMA, naturally this Q is a weak quarter... so check with previous FY... some company have weak Q in their history...
what a narrow escape of GENM, think back if GENM did proceed its call option, and from its yesterday response, today share price definitely slump...
Portfolio add back konsort into portfolio, bought at 1.22.
Bought also more Manulife at 2.60, increase stake to reduce holding cost
Wedding,
I did an update on my post in foot note on why this Q is weaker.
Overall Kfima is in good shape, i've high hope on this. Queuing to buy more. :)
Kfima's revenue was actually higher than the previous quarter. The lower profit attributed to shareholders was due to lower other operating profits and share of profit from associated co., slightly higher tax and notably much higher 'minority interest' (mi). Why so much higher mi in the last quarter? I do not know. However, for the full year, revenue and profit rose 11% and 18% respectively. The 5-yr CAGR was 8% and 14% respectively. CAGR for equity and operating cash flow for the last 5 years was 13% and 36% respectively. ROIC at 17%. Net asset backing RM1.27. DY 6%. Healthy balance sheet. None of these metrics justifies that Kfima should be selling at a PER of less than 5 as it is now. In fact, PER for Kfima should be in double digits. Then again, not all investors are rational, aren't they? Is government-linked company a problem? Is free float a problem? What else?
good point there, not all investor are rational, that is why the price vary there. In fact every level also they are ppl buying & selling, can't really bother much, the macro economy influence like what "urban" mentioned also create impact there.
stick to your investment method & buy in with confident, we can't let other influence our decision so easily, if we see some value buy there, we got to have faith with our own valuation after confirm with mentor, time will tell. Though not 100% right when come to investment but the good valuation should not let go just let like when it come to you.
Manage to increase my stake at 0.895. :)
Update portfolio + Ultramargin line
1. Kfima 100% (cost: 95sen)
2. Manulife 45% (cost 2.63)
3. PJ devel 19.6% (cost 73sen)
4. Konsorf 15.2% (cost 1.23)
5. Emivest 12% (cost 62sen)
6. Maxis 8.9% (cost 5.25)
7. MWE 8.1% (cost 94.5sen)
8. OKA 5.2% (cost 60.3sen)
Second portfolio + margin line
1. CCM duopharma 38% (cost 2.40)
2. kfima 35% (cost 91.5sen)
2. Chuan 16.2% (cost 60.5sen)
3. Classic scenic 10% (cost 74.5sen
US Treasury gets US$6.2bil from Citigroup sales
WASHINGTON: The Treasury Department said Wednesday it raised US$6.2 billion from the sale of 1.5 billion shares of Citigroup stock it received as part of the government's rescue of the bank.
The sales took place over the past month and represented 19.5 percent of the government's holdings of Citigroup common stock.
Treasury said it has triggered a second round of stock sales through its agent, Morgan Stanley.
That will involve an additional 1.5 billion shares.
The government said it would not sell shares during the blackout period set by Citigroup in advance of its second quarter earnings release.
That period is expected to begin on July 1. Treasury has previously said it hopes to sell all of its Citigroup shares this year.
The sales are the government's latest move to recoup the costs of the $700 billion financial bailout.
The stock sold for an average price per share of around $4.33, Treasury said.
In late afternoon trading, Citi stock was trading at $3.90, up 12 cents from Tuesday's close.
The stock has traded in a range of $2.55 to $5.43 over the past 52 weeks.
The Financial Times reported Wednesday that the Qatar Investment Authority was considering buying a portion of Treasury's stake in Citi.
Treasury purchased the common stock in the summer of 2009 at a share price of $3.25.
It received the original 7.7 billion shares of Citigroup common stock, which amounted to 27 percent of the company, in return for an investment of $25 billion in the company.
Citi, one of the hardest-hit banks during the financial crisis, received $45 billion in bailout money.
That was one of the largest rescues by the government.
Of the $45 billion, $25 billion was converted to a government ownership stake in Citi last summer.
The bank repaid the other $20 billion in December. -
in the case of kfima.. my humble view.. besides the status as GLC, the tight cash flow of the company is another concern?
Urban, Kfima has been having positive operating cash flows (OCF) at least for the last 5 years. The compounded annual growth of OCF is 36% for the last 5 years. It did spend quite some money in capex, especially in 2007, and probably resulted in negative free cash flows then. However,the last financial year showed that operating cash flows increased by 109% to RM 118 million. It now has RM 129 million in cash, or a cash of 50 sen per share. Hopefully Kfima's value to be recognised by Mr Market soon.
hi KC. thanks enlightening. yes, I am aware that she has a good growth of rate and profit. I personally like the current q which show tremendous drop of their liabilities. cash flow wise, it seems like she has reducing the financing cost for this q, maybe due to the reduction of borrowing? am not sure on this but certainly it bodes well. if with good profit but with high financing cost, I believe kfima indeed need to work hard for the cost reduction in this area. but with the new downward of this area, certainly hope she will flies. i have been keeping an eye on this. maybe current correction pose good room to collect some. just my humble opinion
Urban, I think one should not be too worried about debt and paying interest. For example i come up with $100 capital and borrow another $100 from bank at 5% interest. Each year I make $50 profit. I pay bank interest of $5 and my net profit is $45, a return of 45%. If I use all my money, my return of investment is only 25% (50/200). But if I only make $5 profit, my return with and without borrowing will be 0% [(5-5)/100] and 2.5% (5/200) respectively. Kfima's return on invested capital is 17.3%, way above bank interest rate. Kfima's Earnings before interest and tax is 26 times interest paid. Hence you should not worry about that.
hi KC, sure, this I should have hold up my hands and legs to support you. I believe if a company is able to leverage well their capital and debt capabilities, she is poised to grow nicely. in the case of KFIMA, I believe overall mart is reacting negatively on this issue due to the status of GLC that she is upholding. As mentioned earlier, there is nothing wrong with GLC if they are able to deliver. Anyhow, this stock really a good on with mid to long term investment horizon. :)
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