MIECO-RMQ32015
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MIECO CHIPBOARD BERHAD (5001) Intrinsic Value calculation KLSE stock selection criteria Par Value = 1.00 EBIT growth (%) >10% 38.08% EPS growth (%) >10% 70.96% PER <10 8.86 Description Financial Year End : 31/1 Year STD 2014 2015 Q3 Stock name MIECO MIECO Share price 1.29 1.29 No. of shares 210,000 210,000 Market cap 270,900 270,900 Sales 321,890 327,688 Net profit 17,877 30,562 EBIT 28,342 39,136 EBIT Margin 8.8% 11.9% Interest Cost 8,901 7,589 Interest Coverage >9 3.184 5.157 EPS 0.085 0.146 P/E <=10 15.15 8.86 Current Assets 111,527 142,078 Total Asset 512,395 533,023 Equity 273,567 289,687 Current Liabilities 182,618 185,379 Total liabilities 238,828 243,336 Stocks 47,143 53,842 Current Ratio >1.8 0.61 0.77 Quick Ratio >1.4 0.35 0.48 Borrowings 101,260 89,441 Minority interest 0 0 Cash & Securities 6,319 16,104 Cash per share 0.03 0.08 Net Debt 94,941 73,337 EV = Market Cap + Mi + Borrowings - Excess C 365,841 344,237 EV/EBIT <8.0 12.91 8.80 Earnings Yield >12% 7.75% 11.37% NTA 1.3 1.38 Change in inventories -1,401 -6,945 Change in receivables -2,235 -12,030 Change in payables -10,182 15,333 Cash Flow From Operation (CFFO) >Net profit 14,392 29,711 Free cash flow >10% sale 33,793 28,409 Proceeds from borrowings 295 - Repayment of borrowings -29,874 -16,090 Dividend (cent) 0.00 0.00 Dividend Yield 0.0% 0.0% Net profit margin (N.profit/sales >8% 5.55% 9.33% Asset turnover (sales/t.asset) >0.5 0.63 0.61 Financial leverage (Total asset/e <2.0 1.87 1.84
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Mieco
Transcript of MIECO-RMQ32015
MIECO CHIPBOARD BERHAD (5001) Intrinsic Value calculationKLSE stock selection criteria Par Value = 1.00EBIT growth (%) >10% 38.08%EPS growth (%) >10% 70.96%PER <10 8.86
Description Financial Year End : 31/12/2015Year STD 2014 2015 Q3 GrowthStock name MIECO MIECOShare price 1.29 1.29No. of shares 210,000 210,000Market cap 270,900 270,900Sales 321,890 327,688 1.80%Net profit 17,877 30,562 70.96%EBIT 28,342 39,136 38.08%EBIT Margin 8.8% 11.9% 35.64%Interest Cost 8,901 7,589 -14.74%Interest Coverage >9 3.184 5.157 61.96%EPS 0.085 0.146 70.96%P/E <=10 15.15 8.86 -41.51%Current Assets 111,527 142,078 27.39%Total Asset 512,395 533,023 4.03%Equity 273,567 289,687 5.89%Current Liabilities 182,618 185,379 1.51%Total liabilities 238,828 243,336 1.89%Stocks 47,143 53,842 14.21%Current Ratio >1.8 0.61 0.77 25.50%Quick Ratio >1.4 0.35 0.48 35.01%Borrowings 101,260 89,441 -11.67%Minority interest 0 0Cash & Securities 6,319 16,104 154.85%Cash per share 0.03 0.08 154.85%Net Debt 94,941 73,337 -22.76%EV = Market Cap + Mi + Borrowings - Excess Cash 365,841 344,237 -5.91%EV/EBIT <8.0 12.91 8.80 -31.86%Earnings Yield >12% 7.75% 11.37% 46.75%NTA 1.3 1.38 6.15%Change in inventories -1,401 -6,945 395.72%Change in receivables -2,235 -12,030 438.26%Change in payables -10,182 15,333 -250.59%Cash Flow From Operation (CFFO) >Net profit 14,392 29,711 106.44%Free cash flow >10% sale 33,793 28,409 -15.93%Proceeds from borrowings 295 -Repayment of borrowings -29,874 -16,090 -46.14%Dividend (cent) 0.00 0.00Dividend Yield 0.0% 0.0%Net profit margin (N.profit/sales) >8% 5.55% 9.33% 67.93%Asset turnover (sales/t.asset) >0.5 0.63 0.61 -2.14%Financial leverage (Total asset/equity) <2.0 1.87 1.84 -1.76%
ROE >10% 6.53% 10.55% 61.44%Price/Book Value <1.5 0.99 0.94 -5.56%
Method 1Target price (EV/EBIT=12) 1.17 1.89Current Price 1.29 1.29Margin of Safety -10.50% 31.64%Potential gain -9.50% 46.29%
Method 2ROE 6.53% 10.55%Rr, % 8.00% 8.00%NTA 1.30 1.38IV= ROE/ Rr*NTA 1.06 1.82Current Price 1.29 1.29Margin of Safety -21.48% 29.12%Potential gain -17.68% 41.08%
Method 3(22.5*EPS*Book value per share)^0.5EPS 0.09 0.15Total equity 273567 289687Number of shares 210000 210000(22.5*EPS*Total Equity/share)^0.5 1.58 2.13Current price 1.29 1.29Margin of Safety 18.33% 39.30%Potential gain 22.45% 64.75%
Checklist STD Actual RemarksPE Ratio <=10 8.86 GoodROE >10% 10.55% GoodFree Cash Flow > 10% Sales > 32769 28,409 OKCFFO > Net Profit > 30562 29,711 OKDebt to Equity - (T.debt/T.equity) <=0.5 - 1 0.84 GoodNet Debt to Equity <=0.5 - 0.8 0.25 GoodNet Profit Margin (N.profit/Sales) >8% 9.33% GoodAsset Turnover (Sales/T.asset) >0.5 0.61 GoodFinancial Leverage (Total asset/Equity) <2.0 1.84 GoodInterest Coverage >9 5.16 BadCurrent Ratio >1.8 0.77 BadQuick Ratio >1.4 0.48 BadEV/EBIT <8.0 8.80 BadEarnings Yield >12% 11.37% OKPrice / Book Value <1.5 0.94 Good
Current Target Gain %Actual Price 1.29 2.01 56
average 1+3
Thank you.Ooi Teik BeeRemisierTel : 603-21482111 (Office hours)
