BERJAYA FOOD BHD

BERJAYA FOOD BHD (BFD MK, BJFO.KL) 10 December 2012

Spreading the “JOLLI”-bean JOY!

Company report BUY

Tan Ee Zhio

[email protected]

+603 2036 2304

(Maintained)

Rationale for report: Company Update

Price RM1.28

Fair Value RM1.55

52-week High/Low RM1.42/RM0.92

Key Changes

Fair value �

EPS �

YE to Apr FY12 FY13F FY14F FY15F

Revenue (RMmil) 88.6 139.5 211.2 258.1

Core net profit (RMmil) 11.1 21.9 36.1 43.3

Fully diluted EPS (Sen) 7.8 8.2 13.5 16.2

Fully diluted EPS growth (%) 8.9 4.6 64.9 20.0

Consensus EPS (Sen) - 6.8 9.5 1.1

DPS (Sen) 4.5 2.0 5.6 6.6

Fully diluted PE (x) 16.4 18.5 12.1 10.3

EV/EBITDA (x) 15.0 21.6 12.9 11.3

Div yield (%) 3.5 1.6 4.4 5.2

ROE (%) 20.8 20.5 21.1 21.7

Net Gearing (%) Net cash Net cash Net cash Net cash

Stock and Financial Data

Shares Outstanding (million) 260.4

Market Cap (RMmil) 333.3

Book value (RM/share) 0.39

P/BV (x) 3.2

ROE (%) 20.8

Net Gearing (%) Net cash

Major Shareholders Berjaya Group (71.7%)

Free Float (%) 24.5

Avg Daily Value (RMmil) n/a

Price performance 3mth 6mth 12mth

Absolute (%) 5.9 15.6 23.5

Relative (%) 8.7 13.5 15.6

1,268

1,391

1,514

1,636

1,759

0.00

0.50

1.00

1.50

2.00

Mar-11

Sep-11

Mar-12

Sep-12

Index Points

(RM)

Berjaya Food FBM KLCI

PP 12247/06/2013 (032380)

Investment Highlights

• We re-affirm our strong BUY conviction on Berjaya Food (BFood), with a

higher fair value of RM1.55/share vs. RM1.40/share previously, following its

acquisition of Singapore’s Jollibean Foods Pte Ltd (JFPL). Our fair value is

pegged to 19x PE on CY13F earnings.

• On 7 December 2012, it was announced that BFood had completed the

acquisition of a 100% equity stake in JFPL for SGD7.5mil (RM19mil),

representing a PE of 11.5x based on the latter’s estimated FY13 profit after

tax of SGD0.65mil. The acquisition is value accretive, given BFood’s fully-

diluted PE of 18.5x.

• The acquisition is a positive, in our view, as it further strengthens the

group’s position as a regional F&B player. Not only does the group have

presence in Malaysia and Indonesia, it just made its maiden footprint into

Singapore. Further out, the group plans to grow the Jollibean brand in

Malaysia and China mainly be based on licensing.

• We see exciting growth plans mapped out, backed by its growing franchise

value business model and supportive operating dynamics. Management is

also keen in expanding Sushi Deli in the medium term, but the focus now is

on Jollibean.

• Given JFPL’s proven growth strategy and existing business model, we see

clarity in earnings. Management intends to open five new outlets for any

brand under JFPL per annum. JFPL is estimated to generate at least

SGD0.75mil in profit before tax in FY13F and we have imputed this into our

earnings assumption, with a 174 day-contribution. As such, BFood’s

earnings are expected to grow by 97% to RM22mil (inclusive of Starbucks’

nine months contribution).

• Jollibean’s operations in Malaysia and China are anticipated to commence

in FY14. On the back of 50 Jollibean kiosks each in Malaysia (5 company-

owned, 45 licensee-owned) and China (solely on licensing), earnings are

expected to rise by 65% in FY14F.

• On the flipside, capex for licensed-kiosks are fully borne by the licensees

as part of their investment costs. Essentially, circa RM2mil of capex is

absorbed by the group for company-owned Jollibean (5 new kiosks each in

Malaysia and Singapore per annum), starting FY14F onwards.

• Given BFood’s strong balance sheet and cash cushion of RM42mil as at

end-1QFY13, the acquisition was funded by 100% internal cash. This

continues to put the group in a zero borrowing position.

• Having said that, management highlighted lower dividends for FY13F as

the group is gearing up for expansion. We have lowered our DPS

assumption to 2.0 sen, translating into a dividend yield of 1.6%.

Nevertheless, dividends are expected to revert to at least 40% of earnings

from FY14F onwards.

• We retain our bullish conviction in BFood for its bright outlook, driven by a

greater F&B portfolio of brands – Kenny Rogers Roasters, Starbucks,

Jollibean, Sushi Deli, Kopi Alley and Dango – that is exposed to different

geographies, healthy 3-year earnings CAGR of 57% and improving cash

flow. We believe BFood deserves a premium against the current valuation

of 12x FY14F PE, which is at a 25% discount to its global food peers.

Berjaya Food Bhd 10 December 2012

AmResearch Sdn Bhd 2

RE-AFFIRM BUY, FV: RM1.55/SHARE

We re-affirm our strong BUY conviction on Berjaya Food

(BFood), with a higher fair value of RM1.55/share vs.

RM1.40/share previously, following its acquisition of

Singapore’s Jollibean Foods Pte Ltd (JFPL). Our fair value

is pegged to 19x PE on CY13F earnings.

The acquisition is a positive, in our view, as it further

strengthens the group’s position as a regional F&B player.

Not only does the group have presence in Malaysia and

Indonesia, it just made its maiden footprint into Singapore.

Further out, the group plans to expand into China.

We see exciting growth plans mapped out, backed by its

growing franchise value business model and supportive

operating dynamics.

We retain our bullish conviction in BFood for its bright

outlook, driven by a greater F&B portfolio of brands –

Kenny Rogers Roasters, Starbucks, Jollibean, Sushi Deli,

Kopi Alley and Dango – that is exposed to different

geographies, healthy 3-year earnings CAGR of 57% and

improving cash flow.

We believe BFood deserves a premium against the current

valuation of 12x FY14F PE, which is at a 25% discount to

its global food peers.

SPREADING THE SOYA BEAN JOY!

� Acquisition of Jollibean Foods Pte Ltd (JFPL)

On 7 December 2012, it was announced that BFood had

completed the acquisition of a 100% equity stake in JFPL

for SGD7.5mil (RM19mil) representing a PE of 11.5x

based on the latter’s estimated FY13 profit after tax of

SGD0.65mil. The acquisition is value accretive given

BFood’s fully- diluted PE of 18.5x. The acquisition is

funded by 100% internal funds.

As part of the terms of the acquisition, the original directors

of JFPL has provided a profit guarantee of up to

SGD0.50mil (equivalent to RM1.27mil), should the profit

before tax of JFPL for financial year end 31 March 2013 is

less than SGD0.75mil.

BFood, via JFPL, now holds the sole and exclusive

worldwide rights to develop, operate, manage all outlets,

stalls and kiosks under the brand name of “Jollibean”,

“Sushi Deli”, “Kopi Alley”, “Dango” and “JFreeze by

Jollibean”.

� Jollibean Pte Ltd – an F&B player in Singapore

JFPL is a 19-year-old Singapore-based company. Since its

establishment, brands under JFPL have sprouted all over

Singapore and it is currently one of the largest chain stores

in Singapore.

Presently, there are a total of 55 outlets under JFPL.

TABLE 1 : NUMBER OF OUTLETS UNDER JFPL

Jollibean 35

Sushi Deli 4

Kopi Alley 14

Dango 2

Total 55

Source: Company / AmResearch

Brief descriptions of each brand are as follows:-

(1) Jollibean – JFPL’s signature product which is made

freshly on a daily basis using “Jollibean” soy milk

drinks, using premium soy beans from Canadian.

Jollibean’s ‘All-in-one Drink and Snack’ Concept

Store, complements its Jollibean soya milk products

with local delicacies such as pancakes (widely-known

in Singapore as “Mien Chiang Kueh”) by the name of

“Jollipancake” with an assortment of fillings such as

creamy cheese, apple, corn, chocolate and lotus seed

paste. These are available in both sit-down cafes and

for on-the-go.

(2) Sushi Deli – Serves freshly cut salmon fish in

sashimi, sushi, hand rolls and salad. It is a Quick

Service Concept or also known as On-the-Go

concept, offering customers an array of “pick-and-

choose” sushi and assorted sashimi sets, temaki &

makimono rolls, onigiri, an assortment of salads, party

platters, bento sets and Japanese sweets including

Tofu Cheese Cake.

(3) Kopi Alley – Started in 2006, Kopi Alley is a local

home-grown cafe, ala “hawker food” style with cozy

ambience serving toast bread (its signature product)

with kaya jam, coffee, half-boiled eggs, nasi lemak,

bee hoon siam and “chee cheong fun”, etc. Most of

these restaurants are located at mass rapid transit

(“MRT”) stations and suburb malls.

(4) Dango – A Japanese kushiyaki cuisine (grilled meat

on bamboo skewers) and yaki onigiri (grilled triangular

rice balls) on a take-way concept.

Amongst the four brands, Jollibean is the largest F&B

chain with 35 outlets in Singapore. It is one of the most

prominent soya bean outlets and can be found in

various parts of the republic.

� Quality and freshness never compromised at Jollibean!

Only the best quality Canadian ‘Hellum’ soy beans, which

is Grade A non-genetically modified, are being used. All

products are 100% natural servings of soya milk prepared

fresh on demand, with no preservative and no colouring.



� Not just one boring flavour soy products BUT ....

Jollibean is well known for its flavoured soya products. As

such, new flavours are constantly created for a more

interesting appeal to customers.

Signature products include the traditional soya milk made

from only the freshest Canadian soy beans. More

importantly, Jollibean’s soya milk drinks are well known for

their rich flavour such as grass jelly, pearl, chocolate,

horlicks, strawberry, papaya and many more.

Apart from just serving soya milk, Jollibean complement

its soya milk with other soy-based snacks such as soya

bean curd, pancakes with an assortment of fillings, crispy

pancake, peanut pancake and soya ice cream.

Jollipancake – pancakes with an assortment of fillings –

has a wide variety of flavours such as corn, chocolate,

green beans paste, green tea paste, lotus seed paste and

red bean paste.

� “All-in-one Drink and Snack” Jollibean Concept Store

We acknowledge the growing popularity of fast-food

restaurants these days and quick easy meals on-the-go.

Being an “All-in-one Drink and Snack” store, Jollibean

caters to both sets of crowds – take away or sit-down

customers in Singapore.

We believe that Jollibean is a perfect place for having

quick healthy drinks or just a casual hang out place as an

alternative to the typical restaurants or cafes.

� A healthier choice – Perfect for breakfast and even as snack

For health conscious individuals, the goodness of soy

bean offers good health benefits such as:-

(1) Enhanced immune function;

(2) Strengthened human tissues and organs;

(3) Improved energy and intelligence;

(4) Prevention of cancer and oxidation; and

(5) Reduce blood fat and high blood pressure.

ENTERING INTO THE NEXT EXPANSION

� A regional F&B footprint with expansion into Singapore, followed by China

The acquisition of Jollibean has further strengthened the

group’s position in the F&B space. Not only does the group

have presence in Malaysia and Indonesia, it made its

maiden footprint into Singapore. Further out, the group has

exciting plans to grow Jollibean in Malaysia and China.



operating dynamics.

� Business operations as usual in Singapore post-acquisition

There will be no change in the business operations of

Jollibean Foods in Singapore, where business will run as

usual. The previous owner of Jollibean Foods continues to

manage the operation in Singapore.

More importantly, BFood has appointed the previous

owner as an adviser, starting 1 April next year, and she will

be assisting the expansion of Jollibean in Malaysia. For

now, she is just an employee of the company.

� Jollibean is the focus of expansion in the immediate- to near-term

Under JFPL, Jollibean is the star product and the main

driver, accounting for circa 60% of revenue, followed by

Sushi Deli at 20%.

Given the great potential in Jollibean, the group has

decided to expand Jollibean into Malaysia and China.

Operations are expected to only begin in FY14F and as

such, to positively impact on earnings.

Having said that, BFood is also eyeing to expand Sushi

Deli into Malaysia. But, management intends to focus on

Jollibean’s expansion in the immediate- to near-term

before looking into the other brands.

� Jollibean’s business model post-acquisition

Apart from having company-owned kiosk, Jollibean’s

expansion will mainly be via a licensing model, given that

the easy-to-replicate business. The kiosk is a take-away

concept with an approximate size of 200sf.

Interested parties, who intend to obtain the Jollibean

license, are required to pay an estimated cost of

investment ranging from RM300k to RM350k (consisting of

capital expenditure, administrative income and licensing

fee). Details and terms of the licensing are still under

review.



Under the licensing structure, the group will provide

development and training, business knowledge transfer,

continuous support throughout the licensing period, setting

up of the kiosk, planning of the layout of kiosk and location

evaluation. The licensee, on the other hand, is responsible

for running the operations of its Jolllibean kiosk.

Nevertheless, we acknowledge the risk of the soya bean

products not being well-accepted by consumers in

Malaysia and China.

Apart from having low start-up costs, the licensing model

sees capital expenditure requirements and administrative

expenses fully borne by the licensees. As such, BFood

incurs no additional cost in setting up the kiosks.

Therefore, in the event the licensed-Jollibean outlets do

not perform well, BFood would only lose out on the

royalties’ income. Upon signing the licensing agreement,

the licensee is required to pay a 50% deposit before

BFood commences work in building the kiosk and the

remaining 50% is paid upon completion.

Subsequently, the licensee is required to pay 5% of sales

for royalties and 1% of sales for advertising and

promotions. The advertising and promotions of Jollibean

brand are under the care of BFood.

Singapore. No change to the current business model. Any

expansion will be company-owned. Management targets to

open 5 new outlets per annum of any brand under JFPL.

Singapore’s operations will contribute to BFood’s FY13F’s

bottom line of nearly 5 months, but we view that the

earnings impact will not be significant (+2.8%), in our

estimates.

Malaysia. Apart from having company-owned Jollibean

outlets, the focus is centred on licensing. Both will begin

expansion simultaneously, where operations are estimated

to begin in FY14. Management expects to open 50 kiosks

(5 company-owned and 45 licensed-owned) per annum

throughout Malaysia in FY14F-FY15F.

We do not rule out the possibility that the first kiosk is likely

to be at Berjaya Times Square given that the mall is owned

by the Berjaya Group.

China. The foray will begin in Shanghai and Guangdong

Province, and gradually branch out to other areas of China

on a licensing basis only. Management targets to open 50

kiosks in FY14F, followed by 75 kiosks in FY15F.

� Synergies to be reaped from Berjaya Corporation’s (BCorp) team in China

We note that the holding company, Berjaya Corporation,

has a ready team of experienced employees in China. For

instance, Kenny Rogers Roaster in China is managed by

BCorp. This enables BFood to leverage on BCorp’s team

of expertise in China.

� Leveraging on business-to-business network

Furthermore, BFood has the advantage of leveraging on a

strong distribution network of the Berjaya Group. For

instance, Berjaya Assets is the franchise holder of the 7-

Eleven brand in Malaysia. Being the single largest

convenience store chain in Malaysia, it has an extensive

network of more than 1,230 stores nationwide, serving

over 700,000 customers daily.

In light of this, management highlighted an interest to sell

Jollibean products in 7-Eleven, moving forward.

Additionally, management plans to have Jollibean soya

milk drink available in KRR outlets.

We see this as another positive, enabling Jollibean to grow

even further by leveraging on the group’s existing strong

distribution network.

� Competition from other soy milk sellers

There are two major soy bean competitors in Malaysia –

QBean and The Soya Shop, with three and eight outlets,

respectively – offering similar products.

Fortunately, BFood has a strong balance sheet to gear up

on expansion, with good support from BCorp. We believe

there is plenty of room for growth for Jollibean,

underpinned by its premium quality and a healthier form of

drinks and snacks.

� Growing health conscious community

We acknowledge there is a growing health-conscious

community in Malaysia, particularly in the young adults and

ageing population, which provides a promising sign for

demand of healthy products such as soy bean.



EARNINGS FINED-TUNED

� FY13F-FY15F earnings raised to incorporate Jollibean’s contribution

Given JFPL proven growth strategy and existing business

model, we see clarity in earnings. Management intends to

open five new outlets for any brands under JFPL per

annum. JFPL is estimated to generate at least SGD0.75mil

in profit before tax in FY13F and we have imputed this into

our earnings assumption, but with a 174 day-contribution.

As such, earnings are expected to grow by 97% to

RM22mil. This includes a nine month-contribution from

Starbucks (acquisition completed in July).

Jollibean’s operations in Malaysia and China are

anticipated to commence in FY14. On the back of the rapid

expansion of 50 kiosks each in Malaysia (5 company-

owned, 45 licensee-owned) and China (solely on

licensing), earnings are expected to rise by 67% in FY14F.

Thereafter, we estimated BFood’s earnings to expand by

20% in FY15F.

The main revenue driver for Jollibean Malaysia and China

is expected to come from licensing fees and royalties,

given that the group targets to open only five company-

owned kiosks as opposed to 45 kiosks per annum in

Malaysia. China’s expansion will solely be based on

licensing, targeting 50 and 75 kiosks, for FY14F an FY15F,

respectively.

� Majority of capex requirements offset by investment costs for licensees

Underpinned by a low start-up cost, small floor space

requirement (200sf) and easy-to-replicate model, capex

requirement is circa RM0.18mil-RM0.20mil per kiosk.

On the flipside, capex for licensed-kiosks are fully borne by

the licensees as part of their investment costs. Essentially,

circa RM2mil of capex is absorbed by the group for

company-owned Jollibean (5 new kiosks each in Malaysia

and Singapore per annum), starting FY14F onwards.

Meanwhile, we maintain our annual budgeted capex for

KRR of RM15mil per annum for refurbishment and opening

of new KRR outlets.

� No change to zero borrowing position

Given BFood’s strong balance sheet and cash cushion of

RM42mil as at end-1QFY13, the acquisition price of

SGD7.5mil (RM19.02mil) was funded by 100% internal

cash.

More importantly, this continues to put the group in a zero

borrowing position. Note that BFood has maintained a

track record of zero borrowing for the past six years.

� Lower dividends in FY13F

Given that the acquisition was 100% funded by internal

cash, management highlighted lower dividends for FY13F

as the group is gearing up for expansion. We have

lowered our DPS assumption to 2.0 sen, translating into a

dividend yield of 1.6%.

Nevertheless, dividends are expected to revert to its

guided minimum of 40% of earnings from FY14F onwards.

We therefore have assumed DPS of 5.6 sen and 6.6 sen,

representing a payout of 4.4% and 5.2%, for FY14F and

FY15F, respectively.

Historically, the group has been paying DPS of 3.0 sen-4.5

sen, circa dividend payout ratio of a least 40% -– in line

with management guidance

VALUATION

� Re-affirm BUY; fair value of RM1.55/share

We re-affirm our strong BUY conviction on Berjaya Food

(BFood), with a higher fair value of RM1.55/share vs.

RM1.40/share previously, following the acquisition of

Jollibean. Our fair value is pegged to 19x PE on CY13F

earnings.

The acquisition is a positive, in our view, as it further

strengthens the group’s position as a regional F&B player.



operating dynamics.

We retain our bullish conviction in BFood for its bright

outlook, driven by greater F&B portfolio of brands – Kenny

Rogers Roasters, Starbucks, Jollibean, Sushi Deli, Kopi

Alley and Dango – that is exposed to different

geographies, healthy 3-year earnings CAGR of 57% and

improving cash flow.

We believe BFood deserves a premium against the current

valuation of 12x FY14F PE, which is at a 25% discount to

its global food peers.



� Peer comparison

TABLE 2 : PEER COMPARISON

Market Cap

Company (USD mil) CY12F CY13F CY12F CY13F CY12F CY13F CY12F CY13F CY12F CY13F

QSR BRANDS BHD 668.4 MYR 6.7 15.7 13.7 1.7 14.0 6.9 6.2 12.5 12.9 1.6 1.8

KFC HOLDINGS (MALAYSIA) BHD 1,028.2 MYR 4.0 19.4 17.1 4.6 13.7 9.1 8.3 13.3 13.4 1.2 1.5

OLDTOWN BHD 220.3 MYR 2.0 15.9 13.3 16.4 19.5 6.5 5.7 17.1 17.9 3.2 3.7

JOLLIBEE FOODS CORPORATION 2,785.1 PHP 109.2 30.7 26.4 18.3 16.4 15.8 12.6 17.1 17.9 1.0 1.2

BREADTALK GROUP LTD 148.2 SGD 0.6 12.6 10.8 18.6 17.6 2.6 2.2 17.0 17.7 2.2 2.2

JAPAN FOODS HOLDING LTD 36.9 SGD 0.4 11.8 10.0 (10.8) 18.2 2.3 2.0 17.6 18.4 2.8 3.3

Simple Average 17.7 15.2

Dividend Yield (%)

(LC)

Price PE (x) EV/EBITDA ROE (%)EPS Growth (%)


� Appendix

CHART 1 : BRANDS UNDER JFPL


CHART 2 : JOLLIBEAN PRODUCTS




CHART 3 : JOLLIBEAN KIOSK




CHART 4 : PB BAND CHART

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CHART 5 : PE BAND CHART

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TABLE 3 : FINANCIAL DATA

Income Statement (RMmil, YE 30 Apr) 2011 2012 2013F 2014F 2015F

Revenue 71.9 88.6 139.5 211.2 258.1

EBITDA 9.4 9.9 15.3 25.3 28.4

Depreciation (4.7) (5.2) (6.3) (6.7) (6.9)

Operating income (EBIT) 4.6 4.7 9.0 19 21.5

Other income & associates 7.2 9.3 19.4 28.9 35.9

Net interest 0.7 0.7 0.7 0.4 0.2

Exceptional items 0.0 0.0 0.0 0.0 0.0

Pretax profit 12.6 14.6 29.0 48.0 57.6

Taxation (2.4) (3.7) (7.3) (12.0) (14.4)

Minorities/pref dividends 0.0 0.1 0.1 0.1 0.1

Net profit 10.2 11.1 21.9 36.1 43.3

Core net profit 10.2 11.1 21.9 36.1 43.3

Balance Sheet (RMmil, YE 30 Apr) 2011 2012 2013F 2014F 2015F

Fixed assets 19.0 25.3 27.0 28.3 29.4

Intangible assets 1.0 1.3 1.3 1.3 1.3

Other long-term assets 0.0 0.1 90.8 90.8 90.8

Total non-current assets 20.0 26.8 119.2 120.5 121.6

Cash & equivalent 36.8 36.7 7.0 11.2 18.5

Stock 2.3 3.0 4.1 6.1 7.6

Trade debtors 5.1 12.9 14.1 21.4 26.2

Other current assets 0.1 0.0 25.6 41.3 57.2

Total current assets 44.3 52.6 50.8 80.0 109.4

Trade creditors 10.1 15.1 4.1 6.1 7.6

Short-term borrowings 0.0 0.0 0.0 0.0 0.0

Other current liabilities 0.4 1.5 1.8 2.2 2.7

Total current liabilities 10.5 16.7 5.9 8.3 10.2

Long-term borrowings 0.0 0.0 0.0 0.0 0.0

Other long-term liabilities 3.0 4.1 4.0 4.0 4.0

Total long-term liabilities 3.0 4.1 4.0 4.0 4.0

Shareholders’ funds 50.8 56.1 157.5 185.6 214.2

Minority interests 0.0 2.5 2.5 2.5 2.5

BV/share (RM) 0.36 0.39 0.60 0.71 0.82

Cash Flow (RMmil, YE 30 Apr) 2011 2012 2013F 2014F 2015F

Pretax profit 12.6 14.6 29.0 48.0 57.6

Depreciation 4.7 5.2 6.3 6.7 6.9

Net change in working capital 18.7 16.8 (13.4) (7.3) (4.8)

Others (15.1) (18.5) (16.3) (25.5) (29.5)

Cash flow from operations 20.9 18.1 5.6 21.9 30.3

Capital expenditure (4.2) (7.1) (15.0) (16.9) (16.9)

Net investments & sale of fixed assets 0.1 (2.6) (90.5) 0.2 0.2

Others 7.8 0.7 0.4 0.2 0.3

Cash flow from investing 3.6 (9.0) (105.1) (16.5) (16.4)

Debt raised/(repaid) 0.0 0.0 0.0 0.0 0.0

Equity raised/(repaid) 0.2 2.4 75.9 0.0 0.0

Dividends paid 0.0 (7.1) (8.9) (8.0) (14.7)

Others (0.2) 0.2 0.0 0.0 0.0

Cash flow from financing 0.0 (4.6) 67.0 (8.0) (14.7)

Net cash flow 24.5 4.6 (32.4) (2.7) (0.9)

Net cash/(debt) b/f 24.5 4.6 (32.4) (2.7) (0.9)

Net cash/(debt) c/f 36.8 36.7 7.0 11.2 18.5

Key Ratios (YE 30 Apr) 2011 2012 2013F 2014F 2015F

Revenue growth (%) 19.1 23.2 57.5 51.4 22.2

EBITDA growth (%) 32.5 5.6 55.4 65.1 12.0

Pretax margins (%) 17.5 16.5 20.8 22.7 22.3

Net profit margins (%) 14.2 12.6 15.7 17.1 16.8

Interest cover (x) n/a n/a n/a n/a n/a

Effective tax rate (%) 18.9 24.9 25.0 25.0 25.0

Net dividend payout (%) 41.7 57.5 24.4 40.7 40.1

Debtors turnover (days) 41 37 35 31 34

Stock turnover (days) 11 11 9 9 10

Creditors turnover (days) n/a 52 25 9 10

Source: Company, AmResearch estimates



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AmResearch Sdn Bhd (335015-P) (A member of the AmInvestment Bank Group) 15 t h F l oo r B a ng un an A mB a n k Gr o u p 55 Jalan Raja Chulan 50200 Kuala Lumpur Tel: ( 03 ) 2 07 0- 2 4 4 4 ( r e sea rc h ) F a x: ( 03 ) 2 07 8- 3 1 6 2

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Benny Chew Managing Director

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