MAMEE financial result update

FY30/6/10
Financial Result
MAMEE announced its 2Q10 result few days ago. For current quarter,

• Revenue increase 17% to RM120.2m as a result of higher sales from local and foreign market due to effective advertising  and promotion activities and strengthening of distribution channels.

• PBT stood at RM13.2m due to higher expenditure in selling and distribution, Advertising & Promotion for new products such as Mister Potato Rice Crisps and Mie Goreng Indonesia. 

For 6-months period, revenue increase 21% to RM235.6m. However, PBT only increase 7% for the same period to RM29.1m, due to higher selling and distribution expenses, and administration incurred.

Compare to immediate preceding quarter, revenue increase 4% on the back of greater demand. PBT 17% lower due to higher spending on sales and marketing.

Technical Outlook
MAMEE has been in my watch list since 10months ago, and the share price has been performed well as i expected. Since it broke above RM3.16, i make another call where price may hit RM3.85. However, it only manage to reach a high of RM3.75 on 23/7/10 before pull back.
Current support is RM3.30. As long as it stay above this mark, MAMEE should be safe.

Stock Valuation
MAMEE closing at RM3.35 is now trading at PE11.3X  (ttm eps RM0.297).With this PE multiple, i think MAMEE is reasonably cheap, given some positive prospects.

• continuous improvements in selling and distribution channels to maintain and enhance the competitive position.
• new products would contribute positively  to the group revenue growth.
• board aware of the trend of increasing raw material cost and forex volatlity.

Overall
MAMEE has been fundamentally very strong for the last 5 financial year as my record. Its revenue as well as profit has been growth consistently. Company is in net cash position current assets keep increasing while total liabilities under control. Regular and generous dividend distribution is what investor after, and MAMEE has a good track record of that too.

All after all, MAMEE is a good company for long term investment. BUY on dip.

Read more...

MPHB financial result update

FY30/6/10
Financial Result
Quarter to quarter comparison, MPHB recorded a 8.4% higher revenue to RM871.36m from RM804.36m last financial year. However, PBT is 44.7% lower to RM95.97m from RM173.54m. The diferrence is mainly due to the exceptional gains from the disposal of quoted investment and dividend income of RM74.6m received in previous corresponding quarter. For individual segment:
~Gaming Division which contribute 91% to company's revenue see its PBT drop slightly to RM92.6m from RM101.3m.
~Stock Broking Division lost RM3.5m due to lower brokerage income and provision for doubtful debt.
~Financial Services Division sees PBT increase to RM15.4m from RM10.8m thanks to improved underwriting performance especially in non-performing classes and greater emphasis on risk management and selection.

Compare with immediate preceding quarter, company PBT drop RM18m mainly due to recognition of losses on the fair value of derivative liability and quoted investment within company.

Technical Outlook
After breaking up to a high of RM2.45 in the early April, MPHB share price consolidate slowly and close at RM2.10 on 27/8/10. It is trapped in a symmetrical triangle with support at RM2.04 and resistance RM2.20. Keep a close eye on them within the nexr 2 weeks.

Stock Valuation
With yesterday closing price RM2.10, MPHB trading at PE8.1x  (EPS RM0.26ttm). I think MPHB is still attractive and can revalue with PE10x, TP RM2.60.

Overall
MPHB has been a profitable company for the last four financial year. I think it will remain the same, given it higher market shares among other NGO. I think we should ACCUMULATE this stock before it take off.

Read more...

OFI another diamond in food industry

Company Profile
Oriental Food Industries Holdings is an investment holding company, established and incorporated in 1978. It operate in two segments:
1.  Snack food and confectionery ~ which is involved in manufacturing and marketing range of snack food and  confectioneries. Rota, Super Ring, Jacker and Oriental are well known household brand names in Malaysia
2. Property development ~ which covers development of land into commercial buildings.
Basically, we can just ignore its property development segments as company's revenue is only generated by its snack food and confectionery sector. 

Company manufacturing plant and head office are based in Ayeh Keroh, Melacca. All the operations are held in four individual factory being name Factory 1,2,3,4. Factory 4 is the largestof all the plants with considerable room for our ongoing expansion plans.

OFI has invest substantially into its own research and development (R&D). With their own laboratory, company manage to :
~keep pace with consumer demands.
~creating new product ranges
~improve the production processes, thereby reducing cost and wastage while increasing productivity and  maintaining standards.

Financial Result
OFI has just release its 1Q11 financial result few days ago. Compared to the same quarter last year, company revenues grow from RM29.2m to RM35.3m. Higher revenue has also driven PBT higher to RM3.7m from RM2.7m. EPS for current quarter also see a 42% hike to RM0.052.
 
Compare to preceding quarter, company revenues also increase marginally from RM32m.

For the past 5 years, OFI Current Assets has also increase consistently, at the same time its total liabilities able to keep under good control. NTA currently stood at RM1.94.

Technical Outlook
30days ago, OFI successfully broke above resistance RM1.85 and a cup formed. It surge to RM2.18 before retrenched to RM1.90 in 2 weeks time, and close at RM1.92 on 20/8/10. As long as it stay above RM1.90, a handle might follow.
By looking the length of the cup, the handle still have two months time to form. With TP 2.44

Company Valuation
With company NTA RM1.93, its price-to-book value=1x(20/8/10 closing price=RM1.92). Including this quarter, OFI EPS(ttm) = RM0.22. P/E 8.7X is deemed cheap for me.

Overall
OFI is a fundamentally good company. Its last five years financial results is a proof. Company Assets also accumulate slowly as we hope not too long, it can become net cash. I rate this as ACCUMULATE at RM1.90~RM1.95

Read more...

HAIO not looking good technically

HAIO open 4cent low to RM3.60, and currently staying at RM3.58. With this price drop, it trigger the 6 months strong support of RM3.62. Base on Fibonacci chart, its next support will be RM3.28.
Dividend yield 8% (Dividend=RM0.285, current price=RM3.58)is very attractive at the moment. Do remember that it the EPS drop again next quarter, we would never expect the high dividend this FY.

 Avoid this stock for the moment until its 1st Quarter financial result come out.  One who own this stock should watch out closely. Sell on strength.

Read more...