Apollo Food Holdings (6432)

I just finished scanning through Apollo financial reports as suggested by ZL, Apollo indeed a good stock.

"While RY is into FOOD STOCK, ZL suggest you give 

APOLLO a run over. This wafer and biscuits manufacturer is improving y-o-y.
If RY intend to put up a portfolio here pls include APOLLO as ZL's recommendation."

Apollo Food Holdings Berhad is engaged in the manufacture of and trading in compound chocolates and chocolate confectionery products and cakes. Thier brands such as Apollo Layer Cakes and Apollo Roka are well known products in Malaysia. Apollo derives almost half its sales turnover from overseas, to over 50 countries and still expanding. Revenue from Malaysia increased by 5.12% while overseas has increased by 33.1%.

Current Price 2.35

PE 9x

Last yeaar DPS 0.25

Revenue +13.6%

Profit -27.2%

cash per share 0.41

Other current assets ps 0.60

total liabilities ps 0.29

Net asset ps 2.33

total assets +2.95%

total liabilities +2.14%

Revenue has inreased by 13.6% but recorded a lower profit due to increase in cost of materials and allowance for diminution of value in investment provided. Cash per share decreased from 0.608sen last year due to higher investing activities.The total cost and book value of the quoted shares held by Apollo was RM11.69million . Overall, balance sheets looks good since cash per share alone is higher than debt per share!.Mamee dont have this advantage. No dividend was declared during last 1st and 2nd qtr reports probably due to lower cash flow than before, but apollo always paying a generous dividend. I'm expecting a lower DPS , probably around +- 0.20 but still higher than FD rate of course.Would be nice if they could maintain DPS.DPS last year was 0.25sen!.  

As ZL mentioned, consumer staple industry is inflation proof business.Plus, with explosive growth potential in overseas market, i agree Apollo is worth buying. currently trading close to NA value  with low downside risk since trading PE below 10 and protected by high dividend yield. I think 2.20~2.25 is a good buy?

Mamee (5282)

Mamee's instant noodle holds 13 per cent of the total market share in the country. Thanks to heavy ad and marketing stratergy , Mamee brand value as valued by interbrand now worth RM87million, more than half of its market cap. I don't see any obstacle for them to capture 15~20% of total market share in our country.Other than instant noodles, Mamee also manufacture a wide range of products including snacks, Dairy product and F&B products. (i like thier mamee monster and mister potato ;) Mamee also had reformulated its noodle snack, Mamee Monster, in response to the Health Ministry's call for healthy lifestyle.A very good move.The snack was approved for sale in Australian schools by the health departments of New South Wales, Queensland, Victoria and South Australia.Mamee market now expending not only in Malaysia but also in overseas market.During the year ended December 31, 2007, the Company acquired additional 40% interest in Mamee-Double Decker Foods (Suzhou) Co. Ltd and Myanmar Mamee-Double Decker Ltd.

Current Price=1.80

PE=8.86

Dividend Yield=5.6%

3rdq08 vs 3rdq07

rev +3.8%

profit +39.4%

cash -25.0%

oter current assets +25.9%

NTA 2.15

borrowing -100%

total liabilities -12.9%

cash per share 0.39 (-30.4%)

other current assets per share 1.26 (+18.5%)

total liabilities per share 0.81 (-18.5%)

Overall, the balance sheet looks stable.Dividend yield also quite attractive enough, higher than FD rate! Sales in world fastest growing market,China increased by 75.5%.Cash per share decreased due to higher working capital.Inventories up 10.9% while recievable up 34.3%.payable incresed only 2.9% and zero borrowing recorded in last quarter.I'm expecting a higher EPS for this year..0.24~0.25. TA wise, mamee has broken above its downtrend line and currently trading below it's NTA value. I will continue monitor this ctr closely. Hope i could buy below 1.60 or maybe 1.50. a good buy or a good bye?

Pelikan - worth holding?

Pelikan is considered one of the world’s premium brands and renowned as a global manufacturer and distributor of:

• Writing instruments 

• Office products

• School & hobby supplies

 • Printer consumables

- Pelikan has a worldwide distribution network and manufacturing facilities in 8 countries.

- Often voted as one of the top German brands recognised (brand recognition of 95%).

- A market leader in Germany across many product segments such as Fountain pens, Ink cartridges, School pens, Crayons, Opaque paint boxes, Moulding clay and Ink eradicators.

Revenue:

Americas 8.8%

Asia,ME and Africa 5.0%

Switzerland 17.6%

Germany 41.2%

Italy 7.9%

rest of Europe 19.5%

PE 4.4x

NTA 1.18

book value per share 1.61

total liabilities yoy -3.25%

total asset +2.55%

current liabilities -7.5% (payables -24.7%)

current assets +4.87%

cash 30/09/08 only RM19.77million

net profit decreased qoq due to stronger sales resulting from 'back to school' in europe in 2nd quarter and decreased yoy due to rising costs of raw materials (taken from 3rd qtr report)

Balance sheet looks healthier than before.No dividend was declared during last 3 qtrs.looking at current cash flow, dividend yield should be lower than last year.

I don't think it's too much to hold pelikan for its international brand name, expanding market presence, defensive stationery business.

GBP Perfect Call but..

Last monday, TA sifu, ZL suggested GBP but i've missed the opportunity to buy and monitor the market . Bz

Perfect call! I'm waiting for a pullback since gbp has rallied a lot. too optimistic?  hoping for better luck next time. 

Portfolio

I bought SIME ave 5.55  early this month and still holding this bluechip counter. Hope i could sell at nice price and if the market go against me ( actually paper loss already), wouldn't mind holding for my long term investment.

I've also bought PELIKAN ave 1.15 since last december. Pelikan rose to as high 1.29 last few weeks but din sell because i'm planning to keep this stock for my long term investment. Maybe i'll do more DCA or dispose the share if i found more interesting counter or the company shows a holland signal.

I'm also holding some euro (when it was trading around 1 euro=¥119) and of course yen.~ Still have cash for further hunting.

I know 2009 going to be another or should i say more challenging year but by then, hope i still have more courage and passion to survive in bursa world. 

p/s = I'm going to be very busy from next month. Hope I have some free time to monitor market.

My Investment Journey

As we all can see from my blog header, i am not an expert but I'd love to see how far can i go in this field. This blog is inspired from one of my favourite blog, A Malaysian Turtle Investing Diary and some forumers leno, grahamsmun, ahbah, kucing...Any critic, comment and advice is welcome. What my fate will be? Wish me luck~