♦ AEON Co
Visit Note : Slower-than-expected SSS Growth In 1HFY12/10
♦ Amway (M) Holdings
Briefing Note : 2H FY12/10 Growth Expected To Remain At Same Level As 1H
♦ CSC Steel
Results Note : 1HFY12/10 Performance Soars On Improved Margins
♦ Market Technical Reading
Daily Trading Strategy : Volume Must Stay Robust To Avoid T+3 Sellings…
♦ Lion Industries Corporation
Short-term Trading Idea : Bullish Chart Breakout
Corporate Highlights...-10/08/2010
Showing posts with label Amway Holdings. Show all posts
Showing posts with label Amway Holdings. Show all posts
Tuesday, August 10, 2010
Amway (M) Holdings Berhad : 2H FY12/10 Growth Expected To Remain At Same - 10/08/2010
1H FY12/10 revenue growth of 8.4% yoy. 1H revenue was largely driven by new product launches and well-received product promotions. In the 1H, Amway introduced various products such as Nutrilite Protein Drink Mix, Positrim Corn Savoury Soup, and various products under its Artistry cosmetics brand, amongst others. Management expects revenue growth for the full-year FY12/10 to be more along the lines of the 1H, at 7-8%, which will be supported by further product launches and romotional/branding activities.
Amway (M) Holdings Berhad : 2H FY12/10 Growth Expected To Remain At Same-10/08/2010
Amway (M) Holdings Berhad : 2H FY12/10 Growth Expected To Remain At Same-10/08/2010
RHB Equity 360° (AEON, Amway, CSC Steel; Technical: Lion Corp, Lion Industries) - 10/08/2010
Top Story : AEON – Slower-than-expected SSS growth in 1HFY12/10 Outperform
Visit Note
- We understand that 1HFY12/10 same-store sales (SSS) growth was around 2%, while management is expecting full-year SSS growth to be similar to 1H10 at around 2-3%. We are thus adjusting our SSS growth assumptions to 2.5% for FY10 and 3.5% for FY11 (from 3.5% and 5% respectively).
- Despite intense competition arising from smaller players such as 99 Speedmart and big hypermarket players such as Carrefour, AEON does not plan to change its business model and expects to maintain its supermarket revenue contribution at 40%, while the rest coming from department stores.
- AEON is expecting to open its Bandar Seri Permaisuri store as well as its Kinta (Ipoh) store at end FY11 the earliest. The reason for the delay in the Bandar Sri Permaisuri store is due to various issues arising from the property developers and a few hiccups in terms of government approvals.
- We have lowered our FY10-12 earnings forecasts by 0.8%, 2.2% and 7.9% respectively after revising our SSS growth assumptions and number of store assumptions.
- We have trimmed our fair value to RM5.72 (from RM6.30) based on target of 13x FY12/11 EPS (from 14x previously). Our lowered target PE is to reflect the weaker outlook caused by the erosion of AEON’s market share given intensifying market conditions. However, as there is still a potential upside of 10.6% to the share price, we are maintaining our Outperform call on the stock.
RHB Equity 360° ( AEON, Amway, CSC Steel; Technical: Lion Corp, Lion Industries) - 10/08/2010
Visit Note
- We understand that 1HFY12/10 same-store sales (SSS) growth was around 2%, while management is expecting full-year SSS growth to be similar to 1H10 at around 2-3%. We are thus adjusting our SSS growth assumptions to 2.5% for FY10 and 3.5% for FY11 (from 3.5% and 5% respectively).
- Despite intense competition arising from smaller players such as 99 Speedmart and big hypermarket players such as Carrefour, AEON does not plan to change its business model and expects to maintain its supermarket revenue contribution at 40%, while the rest coming from department stores.
- AEON is expecting to open its Bandar Seri Permaisuri store as well as its Kinta (Ipoh) store at end FY11 the earliest. The reason for the delay in the Bandar Sri Permaisuri store is due to various issues arising from the property developers and a few hiccups in terms of government approvals.
- We have lowered our FY10-12 earnings forecasts by 0.8%, 2.2% and 7.9% respectively after revising our SSS growth assumptions and number of store assumptions.
- We have trimmed our fair value to RM5.72 (from RM6.30) based on target of 13x FY12/11 EPS (from 14x previously). Our lowered target PE is to reflect the weaker outlook caused by the erosion of AEON’s market share given intensifying market conditions. However, as there is still a potential upside of 10.6% to the share price, we are maintaining our Outperform call on the stock.
RHB Equity 360° ( AEON, Amway, CSC Steel; Technical: Lion Corp, Lion Industries) - 10/08/2010
Friday, August 6, 2010
Corporate Highlights - 06/08/2010
♦ Healthcare
Sector Update : The Wealth Effect
♦ Faber
Results Note : Non-concession IFM Boosted 2QFY10 Earnings
Outperform
Corporate Highlights - 06/08/2010
Sector Update : The Wealth Effect
♦ Faber
Results Note : Non-concession IFM Boosted 2QFY10 Earnings
Outperform
Corporate Highlights - 06/08/2010
Amway (M) Holdings : 1H FY12/10 Within Expectations - 06/08/2010
♦ Within expectations. Amway’s 1HFY12/10 net profit of RM38.5m (+7.8% yoy) was within our and consensus estimates, accounting for 43% and 46% of our and consensus full-year forecasts respectively. We consider this to be in line as historically, 2Q has always been the weakest quarter in terms of revenue, while the 2H earnings are generally stronger.
Amway (M) Holdings : 1H FY12/10 Within Expectations - 06/08/2010
Amway (M) Holdings : 1H FY12/10 Within Expectations - 06/08/2010
RHB Equity 360° - 6 August 2010 (Healthcare, Faber, Amway, Notion; Technical: Equine, Boustead)
Top Story : Healthcare – The wealth effect Overweight
Sector Update
- Healthcare is a long-term growth business, notwithstanding Khazanah’s willingness to pay a big premium for Parkway.
- In our view, the wealth effect will be one of the primary drivers for growth in healthcare expenditure in Malaysia. The Government has already stated its long-term plans under the New Economic Model to raise per capita income from US$7.6k currently to US$15k in 10 years. Medical insurance, tax incentives and medical tourism will provide the additional growth drivers.
- With the exit of Parkway from the equity market, we believe there will be a scarcity premium attached to the remaining and broadly comparable hospital groups like KPJ. As it stands, regional peers’ average PER has moved up to 18.5x, from 17.9x in Jun.
RHB Equity 360° - 6 August 2010 (Healthcare, Faber, Amway, Notion; Technical: Equine, Boustead)
Sector Update
- Healthcare is a long-term growth business, notwithstanding Khazanah’s willingness to pay a big premium for Parkway.
- In our view, the wealth effect will be one of the primary drivers for growth in healthcare expenditure in Malaysia. The Government has already stated its long-term plans under the New Economic Model to raise per capita income from US$7.6k currently to US$15k in 10 years. Medical insurance, tax incentives and medical tourism will provide the additional growth drivers.
- With the exit of Parkway from the equity market, we believe there will be a scarcity premium attached to the remaining and broadly comparable hospital groups like KPJ. As it stands, regional peers’ average PER has moved up to 18.5x, from 17.9x in Jun.
RHB Equity 360° - 6 August 2010 (Healthcare, Faber, Amway, Notion; Technical: Equine, Boustead)
Thursday, May 20, 2010
Corporate Highlights - 20/5/2010
♦ Notion Vtec
Visit Note : Set To Deliver
♦ Kencana Petroleum
News Update : Termination Of Proposed Collaboration With Global Offshore
♦ Media Prima
Results Note : Expecting Stronger Earnings Ahead
♦ Media Prima
Results Note : Expecting Stronger Earnings Ahead
♦ Amway (M) Holdings
Results Note : Attractive Yield
Corporate Highlights - 20/5/2010
Visit Note : Set To Deliver
♦ Kencana Petroleum
News Update : Termination Of Proposed Collaboration With Global Offshore
♦ Media Prima
Results Note : Expecting Stronger Earnings Ahead
♦ Media Prima
Results Note : Expecting Stronger Earnings Ahead
♦ Amway (M) Holdings
Results Note : Attractive Yield
Corporate Highlights - 20/5/2010
Amway (M) Holdings Berhad : Attractive Yield - 20/5/2010
In line. Amway’s 1QFY12/10 net profit of RM16.7m (-13.7% yoy) was in line with our and consensus expectations, accounting for 18% and 20% of our and consensus earnings forecasts respectively. We consider this to be in line as we expect stronger earnings ahead due to the effect from weakening US$ against RM, which has already depreciated by 6% on a qoq basis. For every 1% depreciation in US$ against RM, this would lead to a 0.2-0.4%-pt gain in gross profit margin for Amway.
Amway (M) Holdings Berhad : Attractive Yield - 20/5/2010
Amway (M) Holdings Berhad : Attractive Yield - 20/5/2010
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
Visit Note
♦ Construction work on its new 150k sq ft plant is set to commence production by Sep-10. Note that management expects capex of around RM80m to ramp up the base plate capacity to 1m/month, 5m/month, and 7m/month by FY10-12 respectively from 350-400k/month (currently) vs. 100k/month in Jan-10.
♦ Also, the company expects stronger volume loading in 2H2010 from WD on the back of strong demand for HDD components. Recall that WD overtook Seagate as the No. 1 HDD vendor in 1Q10. WD now expects to increase its total HDD shipments by more than 20%. While currently capacities for these components are 800-900k/month, management is expecting to increase capacity to 1.5-2.0m/month by end-2010.
♦ In the anticipation of higher costs this year stemming from higher start-up costs and product testing, we have trimmed our FY10 net profit forecast by 4.3% to RM53.6m. However, given stronger volume loading as well as lower cost stemming from tight cost control and higher utilisation rate, we have tweaked upwards our FY11-12 net profit by 0.8% respectively.
♦ Separately, assuming completion of the proposed 10% placement and rights issue of free warrants, we estimate FY11 fully-diluted EPS of 38.5 sen, i.e. a dilution of 17.7% from our current forecast, while our fair value would fall to RM3.85. Nevertheless, this would still imply 41% upside from current levels.
♦ After revision in earnings, our fair value is raised to RM4.68 from RM4.64. Maintain Outperform.
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
♦ Construction work on its new 150k sq ft plant is set to commence production by Sep-10. Note that management expects capex of around RM80m to ramp up the base plate capacity to 1m/month, 5m/month, and 7m/month by FY10-12 respectively from 350-400k/month (currently) vs. 100k/month in Jan-10.
♦ Also, the company expects stronger volume loading in 2H2010 from WD on the back of strong demand for HDD components. Recall that WD overtook Seagate as the No. 1 HDD vendor in 1Q10. WD now expects to increase its total HDD shipments by more than 20%. While currently capacities for these components are 800-900k/month, management is expecting to increase capacity to 1.5-2.0m/month by end-2010.
♦ In the anticipation of higher costs this year stemming from higher start-up costs and product testing, we have trimmed our FY10 net profit forecast by 4.3% to RM53.6m. However, given stronger volume loading as well as lower cost stemming from tight cost control and higher utilisation rate, we have tweaked upwards our FY11-12 net profit by 0.8% respectively.
♦ Separately, assuming completion of the proposed 10% placement and rights issue of free warrants, we estimate FY11 fully-diluted EPS of 38.5 sen, i.e. a dilution of 17.7% from our current forecast, while our fair value would fall to RM3.85. Nevertheless, this would still imply 41% upside from current levels.
♦ After revision in earnings, our fair value is raised to RM4.68 from RM4.64. Maintain Outperform.
RHB Equity 360° - 20 May 2010 (Notion Vtec, Kencana, Media Prima, Amway; Technical: IOI, FBM KLCI)
Thursday, February 25, 2010
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
Amway (M) Holdings Berhad (Malaysia ) : Look Forward To 2010 - 24/02/2010