KFC Holdings 3492

There's no need for introduction for this company, KFC is loved but all generation and regardless any race, Malaysian enjoys eating their product. For me, i do enjoy eating KFC once a month, too much fat and calories..need to watch my weight. :p

Anyway, according to the data from annual report, the number of restaurant especially for KFC has risen year by year. This is important as other than higher same restaurant sales, more new branches at strategic location is vital to fuel their future growth.

KFCH has personally being invited by KFC parent's, YUM brand to operate KFC restaurant in Pune state of India, which i think its a great compliment to current management team. or else, definitely they will no invite them right.With acquisition of Kernel Foods Pte Ltd, KFCH has officially spread their wing to new territory, India which could offer good earning growth potential.

Balance sheet is average but safe, not bad but not at impressive level. Dividend yield also not attractive, but its understandable as they need to retain earning for future expansion(restaurant), but their business is very resilient despite even during crisis in 2007~2008.

5 years revenue CAGR is 9.78% and the profit margin is quite consistence, at range of 5.6~6.5%. The average 5 yeats margin is around 5.9%, but looking at current infaltion rate, i think 5.8% is quite safe already.Total revenue for FY2010/11 and FY2011/12 i think should be around R

M2.53bn and RM2.79bn, while net profit should come around RM146.90m and RM1.61.95m. Total EPS est FY2010/11 & FY2011/12 is 0.185cts and 0.204cts. So, at current price of RM3.49, KFC is trading at forward PE 18.8 and 17.1. I think its quite expensive at current level. I think its safe to buy around RM3.10. However, the estimation is done without factoring in new business in India as the management has not done any earning target from this new acquisation. So, if we factoring in India business and it's growth potential, i think worth to buy > RM3.10~RM3.20.

Despite a recent takeover saga, with or without acquisition, KFC is still a great growth stock to invest in but not at current price..IMO.

PADINI (7052)

Padini, SEED, Vincci are another great homegrown brands created by PADINI Holdings. Seriously i like their product especially SEED and Padini as their quality is comparable with foreign fashion brand such as TopMan, G2000 and Zara, well when its comes to fabric, i think ZARA is slightly more comfortable to wear.

Anyway, unlike Bonia, Padini offers more product range to cater different segment & target of consumer.

Padini managed to grow an impressive earning from just RM7.02 million in FY2004 to RM60.75 million in FY2010. Ok, enough about the past, lets look at their latest result Q1FY2011, net profit & revenue dropped by -8.9% and -2.91% respectively. This is the second times Padini posted a negative sales growth YoY since FY2004, the first time was Q2 FY2010. At first i thought Padini has lost thier touch but after reading their press release, i dont think they already hit the ceiling just yet. The management also mentioned that they will open at least 3 new Brand Outlet stores this financial year.

"The reduction in Revenues could be attributed to the shorter Hari Raya Aidilfitri shopping season of 2010. In 2009, Ramadan ended on 19^th September, whereas in 2010, the month ended on 9^th September. The relatively larger decline in Profit before Taxation however had resulted from increased expenses arising out of an expanded distribution network. In the 12 months ended 30^th September 2010, the Group had opened 7 new outlets, closed 2, and added nearly 62,000 square feet to the gross floor area for retailing in Malaysia. As awareness for the new stores improves, we expect sales revenues to rise and contribute to future profitability."

Back to valuation, Padini Holdings balance sheet is extremely healthy with strong cash flow, so it's no surprise that they will reward a higher dividend or at least the same yield as last year. The company trading at current PE 13.2, but looking at rising consumerism in Malaysia (their store always pack with customer) i believe they could grow their earning, by at least RM 65~70 million, giving a conservative growth of 8~14%. Well, their lowest profit growth was 14.6% in FY2007. by implying 14% growth, i think its already safe enough. At RM70million,` RM1.18 the company is valued at annualized PE of 11.1 with EPS of 10.64. By implying PE10, i think its safe to buy ~ RM1.05. Plus, dividend also attractive at ~4% & ICapital also hold significant amount of shares in this company.

Mah Sing eyes 30pc revenue from overseas

PROPERTY group Mah Sing (8583) Group Bhd said it hopes overseas ventures will be able to bring in 30 per cent of its total revenue within five years.

Mah Sing is aiming to launch its first project in China this year and is also working towards participating in property development activities in Vietnam, Singapore and Australia.
"China and Vietnam have a high population demand, while for Singapore and Australia, we can offer the type of products they need based on our experience over the years," senior manager corporate communication Lyanna Tew said in Kuala Lumpur.

She said the group is expected to do well overseas, given its large network of consultants and architects.Yesterday, Mah Sing held a signing ceremony with 20 of its future tenants at its first retail development project, Southgate Sungai Besi, which will be officially opened in June this year.

Southgate is an integrated commercial hub comprising three retail office blocks and corporate blocks with a total new lettable area of 600,000 sq ft. In 2009, it sold a seven-storey Apex Tower in Southgate to Taiwanese Chen Ho-Yuan for RM63.1 million.

Among tenants who took part in the signing ceremony include food and beverage outlet Subway, Aunty Anne's and Pappa Roti and fashion house Nichii, which took up 32,000 sq ft of retail shop lot.

This year, the property group is projecting between RM2 billion and RM2.5 billion in sales, boosted by project launch, with a gross development value (GDV) of between RM2.5 billion and RM3 billion.

Two highly anticipated projects are the MCity in Jalan Ampang and Icon City located in Petaling Jaya.

Currently, Mah Sing has 33 ongoing projects with a GDV of RM9.4 billion, which should last it over the next seven years.

CapitaMalls payout higher than forecast

Published: 2011/01/22

CAPITAMALLS Malaysia Trust (CMMT), the country's largest pure-play shopping mall property trust, says it will pay out slightly higher dividends for 2010 than anticipated.

CMMT, which was listed on Bursa Malaysia last July, achieved a distributable income of RM45.9 million for the financial period from July 14 to December 31 last year, as compared to its forecast in its listing prospectus of RM45 million.

It plans to pay out the whole sum, which brings its dividend per unit (DPU) for that financial period to 3.4 sen as compared to the 3.33 sen it forecast in the prospectus.

On an annualised basis, the DPU stood at 7.26 sen, which is higher than the 7.16 sen it had forecast. Unitholders can expect to receive their first distribution of 3.4 sen per unit on February 25.

Sharon Lim, chief executive officer of the trust's manager CapitaRetail Malaysia REIT Management Sdn Bhd, said she was confident CMMT will achieve its forecast DPU of 7.45 sen, as stated in its prospectus.

CMMT made a net profit of RM109.4 million in the last financial period. There were no comparative figures for the previous year as the company was set up last year.

CMMT's portfolio includes Gurney Plaza in Penang, an interest in Sungei Wang Plaza in Kuala Lumpur and The Mines in Selangor.

"With our quality portfolio of three strategically located shopping malls in the higher-growth urban centres of Penang, Kuala Lumpur and Selangor, CMMT is well positioned to capitalise on the expansion in Malaysia's retail sector," Kee Teck Koon, chairman of CapitaRetail, said in a press statement yesterday.

Lim said the malls were close to full occupancy, with shopper traffic growing by 16.2 per cent in the fourth quarter from a year ago. This year, CMMT expects to complete its proposed purchase of the Gurney Plaza extension.

Its sponsor CapitaMalls Asia Ltd's recent purchase of Queensbay Mall in Penang will form the seed asset for its planned RM1 billion Malaysia retail property fund, she said, adding that this will provide a pipeline of assets for CMMT to acquire.

CMMT also said yesterday that its trustee, AmTrustee Bhd, had done a revaluation for all its properties and that their value stood at RM2.14 billion as at the end of last year, instead of RM2.13 billion.

Petronas Gas 6033

Is it good to buy and keep this company at current level (RM11.26)? It has been moving up slowly, earning growth is recovering and so do its profit margin. Looking at latest financial result, H1 net profit at around ~82% from last full year net profit. Balance sheet also extremely healthy with net cash position and most of their liabilities is under payable term. Total liabilities has decreased by ~14% in 5 years while its asset has grown by ~13% in same period..strng cash flow and ok level of dividend payout..i think they give me a good safety margin..but yea..its run as slow as rabbit.

Anyway, they have been awarded by Petronas the development and provision of liquefied natural gas (LNG) facilities and services in the vicinity of Sungai Udang Port, Melaka. PTG will act as the plant’s owner and operator. This plant will resolve the problem of gas supply constraints in Peninsular Malaysia and allow the possible extension of first generation power purchase agreements as well as increase the supply of gas for non-power users.

p/s-2011 (6months result)

Spritzer 7103

This company currently trading below their net asset and at first glance, the valuation also looks ok to me. Will study more, as i managed to raise some cash from fresh capital and cash from bonia & Mahsing..feel itchy to buy something. :p

After studying a bit on this company, i found that Spritzer is good and growing company, balance sheet is ok, not really impressive but at ok level, dividend yield also not attractive, will revisit if spritzer drop to 0.80sen. For time being, will keep under my watchlist. :)

Mahsing ..again

Mahsing has rallied from 1.85 last December to as high 2.15, and i believe they could go higher due to strong fundamental and good sentiment in property market.

2010Q3= 9months result

update

Disposed mahsing that i bought last mths 1.78, @RM2.12. Still holding the rest @RM1.48.

Bonia already disposed @RM1.76. :p

Property market still growing

Tan Sri Leong Hoy Kum, group managing director/group chief executive, Mah Sing Group Bhd

TEFD: How would you rate your company’s performance in 2010?
Leong: It was a challenging but rewarding year as we managed to deliver and even exceed our sales target. For the first nine months of 2010, we managed to chalk up RM1.2 billion in sales, which represents growth of nearly 100% from the RM615 million sales achieved in the same period in 2009.

We were the most active developer in terms of land banking with 10 transactions valued at RM756 million. These new land deals have a combined gross development value (GDV) of about RM4 billion and in total, we have about RM9.4 billion remaining GDV and unbilled sales that should last the group for the next seven years.

We recorded RM87 million in net profit for the first nine months of 2010, a 26% improvement compared with RM69 million a year ago.
We received 10 awards for corporate performance and projects in 2010 as opposed to eight awards in 2009, and this serves to motivate us to do even better in 2011.

We were named Malaysia’s Top 10 developers in The Edge’s Property Awards, and we were recently also named Best Company in Malaysia for Corporate Governance in the Asiamoney Polls 2010.


How do you perceive the outlook for your company and industry in 2011?
The property market did well in 2010 and we think its performance is sustainable for 2011 as the current buying pattern is backed by fundamentals of the economy and purchasers.

Property investments have proven to be a reliable asset class and the key drivers that will continue to sustain and drive this sector will be low unemployment, strong economic growth and improved housing affordability due to low mortgage rates. The financial system is strong, flushed with liquidity and the banks are accommodative in lending.

We intend to continue building our brand in the mid- to high-end property market. We have 33 projects, of which five are completed, 18 ongoing and 10 are new projects in the planning stage. This makes us one of Malaysia’s most diversified property players with a full range of property projects, be they residential, commercial or industrial.


What do you think are the challenges ahead?
Scarcity of choice land in prime locations, rising land costs, rising construction cost, access to labour and competition would be the main challenges.


What is your wish list for 2011?
We welcome the implementation of the Economic Transformation Programme as well as high impact projects like the MRT, Greater Kuala Lumpur and other infrastructure projects.

These are expected to have strong impact in terms of economic growth, job creation, improving the standards of living and increase the income level of our people.

These initiatives will attract foreign direct investment, expand our growth and increase purchasing power, as well as improve our infrastructure and accessibility. All these could potentially improve property values further.

CI Holding (2828)

C.I. Holding operates in three segments: Beverage, Building and construction related products and Investment holdings.Who doesn't know Pepsi, Mountain Dew, 7Up Revive and Blue (mineral water). Their management has done a great transformation from quarry, building material and loss making to a solid beverage and construction produc company ans still growing at healthy rate. 5 Years CAGR ~14% (revenue)

We can see the growth trend from the chart. Btw, sudden increase in revenue FY04 vs FY05 mainly to sales of the their newly acquired beverages division, while the higher loss in Q4 FY04 was mainly due to the recognition of loss on disposal of C.I. Enterprise Sdn Bhd a wholly-owned subsidiary of RM35.509 million and impairment loss of goodwill of the quarry division of RM20.464 million.

...will write later..too lazy to write.. :P