Amway (M) Holdings Berhad ( Malaysia ) : Look Forward To 2010

Below expectations. Amway’s FY12/09 net profit of RM72.5m was below our but in line with consensus expectations, accounting for 88% and 95% of our and consensus forecasts respectively. However, Amway’s gross profit level was in line with our expectations (accounting for 99%). The key variances were mainly due to higher-than-expected distribution cost and selling and administrative expenses in 4Q09, which we believe was attributable to the opening of the new headquarters. Qoq, distribution cost and selling and administrative expenses jumped by 21% and 14% respectively. Meanwhile, effective tax rate remains high at 26.6%, due to certain expenses being disallowed for tax purposes. During the quarter, Amway declared a final single-tier dividend of 7 sen, bringing full year FY09 net dividend to 48 sen or net dividend payout of 109%, which is in line with our forecast of 48 sen, translating to net yield of 6.5%.

Amway (M) Holdings Berhad (Malaysia ) : Look Forward To 2010 - 24/02/2010

RHBRI Coporate Highlights - 23/02/10

RHBRI Coporate Highlights - 23/02/10

Analyst: RHB Research Institute

RHBRI Coporate Highlights - 23/02/10

Economic Highlights (Malaysia) - 22 Feb 2010

- Leading Index Moderated In December, But Recovery Remains Intact

Economic Highlights (Malaysia)

RHBInvest Research Highlights 18th February 2010

RHBInvest Research Highlights 18th February 2010

Top Story: Amway
• Favourable Outlook
• Membership expected to grow at 2% p.a. for FY10-11.
• Four new retail stores in 2010.
• Imported costs to benefit from a weakening US$.
• Expect to continue its net dividend payout of 90-95%.

Short-Term Trading Idea: Dialog
• Strategy: Bargain Buy for a chart breakout of RM1.06.
• Immediate Target at RM1.06.
• Immediate Support at RM0.96.
• Exit: Cut loss if it falls below the 10-day moving average near RM1.00.


RHB Equity 360° - 18 February 2010 (Amway; Technical: Dialog)