Pelikan International Corporation Berhad (PELIKAN)

The first time i heard this name Pelikan, i thought it is a local or Malaysia brand (same like when i heard "Bata"). After some study, i found that it is originally from German, and also an international brand which have market thier product in more than 50 countries. In Malaysia, Pelikan can be say as a baby brand. Pelikan is in the consumer industry which engages in the manufacture and distribution of writing instruments; art, painting, and hobby products; school and office stationery; and printer consumables. The company distributes its products through wholesalers, dealers, retailers, hypermarkets, schools, and specialized stores primarily in Germany, Switzerland, Italy, rest of Europe, and Latin America. Pelikan International is headquartered in Puchong, Malaysia.

Not so many people known about this brand, same like me in the past. Most of us only heard about buncho's, Faber Caster, Pilot, Parker, Stabilo & etc........

It is a strong company that have efficient management team. Pelikan is aggrassively enter the Asia market. The are on the road to take over more Asia manufacturer & distribution network.

1)The EPS as below
2005 RM0.215
2006 RM0.241
2007 RM0.289

Average EPS Growth Rate = 19%

2)The Dividend per share as below
2005 RM0.18
2006 RM0.15
2007 RM0.11

The % of Dividend payout rate (2/1)
2005 83.72%
2006 62.24%
2007 38.06%

Average ROE = 17%

Average PE (10years) = 8.44

From the above, we can know that the management started to reduce the dividend payout although the EPS is increasing. For me it is a good strategy to increase my investment return if the management can reserve the cash for better investment and generate more ruturn, rather than just pay us the dividend which have to deduct from the government tax.

If let's say the next 5 years, the comapny remain the same dividend payout rate as 2007 with average ROE of 17%, our expectation can be like below:

17% x 61.94% (100% - 38.06%) = 10.53%

It mean the reserve portion of cash after the deduction from dividend payout, can generate of 10.53% growth for Asset.

Let's culculate the future growth of the Net asset per share with the 10.53% growth rate

2007 1.7
2008 1.879
2009 2.077
2010 2.296
2011 2.54
2012 2.80
2013 3.09
2014 3.42
2015 3.78
2016 4.18
2017 4.62

The Intrinsic value = 4.62 x 0.17 x 8.44
= 6.63

with the current price of RM2.95, we are at more than 200% of margin of safety.

Extra Information:

If you check the shareholding changes, you would found that Pelikan has just get a new giant investor (Hayman Capital Master Fund LP-the most successful fund in last year which gain a lot of money in the US Crisis). Other than that, the other shareholders & diretor of the company like the Goldman Sachs, Mr Loo are increasing thier shares in Pelikan. Do we can expect the future of Pelikan from here? Please think about it.

My Recent Study - Pelikan, Picorp, Kasset & Vads

Try to look into these stocks. There have the potential to growth further. I will post my analysis after my study. you can post yours' as well if you guys have done.

Thanks!

Good Investing!

NESTLE (M) BHD (4707) NESTLE

Business Summary:

Nestle (Malaysia) Berhad, through its subsidiaries, engages in the manufacture, marketing, and sale of food products in Malaysia. The company's products include ice-creams, drinks, liquid milk and juices, instant coffee and chocolate confectionery products, instant noodles, culinary products, cereals, yogurt and related products. It also offers sweetened condensed milk, and powdered milk and drinks. The company's brand names include MILO, NESCAFE, MAGGI, NESPRAY, and KIT KAT. Nestle (Malaysia) also exports its products primarily to South East Asian and Middle East countries. The company was founded in 1912 and is headquartered in Petaling Jaya, Malaysia. Nestle (Malaysia) Berhad is a subsidiary of Nestle S.A.

Beverages

MILO - relaunched of PROTOMALT to enhance the beverage’s nutritional profile, the launched of 3in1 Mocha and 3in1 Light. MILO launched a new public service campaign, the “Grow with Sports”. The year saw MILO recording an all time high in terms of market share, which reflects the continued confidence and support for the brand that is a household name.

Nescafe - the brand introduced new variants of the easy-mix instant coffee - NESCAFÉ 2in1 for consumers who prefer coffee without sugar and Nescafé Light Roast for those seeking a milder, smoother cup of coffee. The premium NESCAFÉ GOLD brand re-launch of the improved NESCAFÉ 3in1, added to the brand’s aroma of success.

Food

MAGGI continued to grow from strength to strength and remains a market leader in the noodles, tomato ketchup, chilli sauce and stocks categories, and has managed to withstand strong competition in the form of imports from other ASEAN countries.

Milks

In line with the focus on Nutrition, Health and Wellness, innovation and renovation activities were carried out, which resulted in the launch of products with added benefits such as NESTLÉ
OMEGA PLUS with ACTICOL (helps reduce cholesterol), NESVITA Cereal with reduced sugar, NESVITA 3in1 and NESTUM Oats.

Chilled Dairy

The Chilled Dairy Business Unit achieved strong growth in both the Yogurt and Yogurt Drink categories, aided by new product launches. The marketing campaign for Bliss Low Fat Yogurt Drink helped to nurture stronger consumer awareness and pushed the category to achieve strong double digit growth. The launch of the Bliss Light Yogurt Drink, along with the introduction of new variants such as the Yogurt Drink with 0% fat & 0% cholesterol, further amplified the category’s market share.

Ice Cream

NESTLÉ Ice Cream had another good year during the period under review, maintaining its market leadership. As a result of product innovation in the cone range, DRUMSTICK INFERNO and DRUMSTICK KIT KAT were launched, achieving double digit growth and establishing DRUMSTICK as the fastest growing brand in the ice cream portfolio. Similar strides were made in the Take Home range with the launch of LA CREMERIA 800ml which offers consumers a view of the appetising rosettes and generous sauce through its transparent lid.

Chocolate & Confectionery

Strong volume growth was recorded for both the major brands - KIT KAT and SMARTIES - in the domestic market as well as in the export markets. In the case of KIT KAT, this was achieved via core equity building communications as well as packaging renovation. In addition to this, the introduction of the KIT KAT BITES format in Thailand also proved to be very successful, adding to the growth volume for the category. SMARTIES, meanwhile, generated strong sales during the year, boosted by innovative ideas including an on pack character programme, which was
supported by a 360 degree award-winning campaign.

Nutrition

Infant Nutrition launched NESTLÉ Rice Porridge in mid 2006, the first dry savoury food for babies in Malaysia. The quick and easy to prepare meal - which is rich in texture and fortified with 15 vitamins and minerals essential for growth and development - was well received by mothers. NESLAC 1+ and 3+ Growing Up Milk was re-launched during the period under review, boasting a brand new look aimed at further strengthening the brand’s presence in the premium segment.

The launch of NUTREN UNTUK DIABETIK 900g and NUTREN BALANCE Cereal Bar provided a healthy and tasty nutritional option for consumers seeking to manage their blood sugar levels. In the Performance Nutrition segment meanwhile, ongoing renovation to deliver products that meet the needs of individuals with active lifestyles, resulted in the introduction of POWERBAR TRIPLE THREAT bar – boasting the same performance as the POWERBAR but tasting like a cereal bar. The brand continued to support major sporting events in Malaysia, and provided a much needed energy boost to national athletes under the Malaysian Sports Council programme.

Food Services

To expand the out-of-home channel further, new emphasis was placed on the new product offerings and an increased presence for beverages with machine placements in the Office Coffee Service (OCS) channel.

Among the new entrants for the year were mixes and sauces such as MAGGI Nasi Goreng Cina, Nasi Goreng Kampung, Seafood Imperial Sauce, Curry Chicken Paste, Sambal Tumis Paste, Perencah Ayam Goreng, and customised salsa sauce for McDonald’s. New beverages introduced include Kiwi Fruit, Mixed Fruit and NESCAFÉ Latte. In line with the Group’s move towards Nutrition, Health and Wellness, the sugar content in most of the beverages has been reduced, while maintaining their taste and quality.

Financial Performance:

Year 2002 2003 2004 2005 2006 Average

ROE 43.15 40.43 48.81 49.74 47.26 45.88 > 10 (strong)

ROA 13.05 11.95 17.33 19.68 18.11 16.02 > 10

Total Liabilities : Equity = 55.44 : 44.56

D/E Ratio = 0.2

P/E Ratio = 22

DY = 3.9%

Average Revenue Growth Rate = 7.2%

Average Earnings Growth Rate = 8.5%

Supporting Value:

1. NTA per share (as at 30/9/07) = RM2.50

2. The EPF department increase the share holding.

3. Strong efficiency of the management level. (can also refer to the increasing ROE)

4. Strong cash flow with RM46million on hand.

Investment Risk:

1. The increasing cost of raw material.

2. The rising competition of local players like Power Root, Mamee, Super........

Conclusion:

Nestle is a company that have a strong market penetration in Malaysia market. It achieved a great ROE for the past 10 year with an average of 40%. It shows a efficient management team. These is a challeging year for Nestle with the high inflation and cost of raw material. For the recent price, it is overvalued. I recommend to put it into watchlist. (Try to check-out the rising competitor - Natbio, which is the owner of power root. It achieve a strong growth, especially the Alicafe, Pearl, and the new oligo coco)

PARAMOUNT CORPORATION BHD (1724) PARAMON

Business Summary:

Paramount Corporation Berhad, through its subsidiaries, engages in the property investment business primarily in Malaysia. It operates through four segments: Property investment, Property development, Construction, and Education. Property investment segment engages in the rental of residential and commercial properties. Property development segment develops residential and commercial properties. Construction segment engages in the construction of buildings. This segment also provides engineering services. Education segment operates private educational institutions. Paramount Corporation was incorporated as Malaysia Rice Industries Berhad in 1969 and changed its name to Paramount Corporation Berhad. The company is based in Petaling Jaya, Malaysia.

Property Division

Paramount has earned an excellent reputation as a reliable and quality focused property developer, which attribute has been re-affirmed through Paramount Property (Utara) Sdn Bhd wining the prestigious 12th FIABCI Property Award of Distinction 2004, Residential Development Category for its development, Bandar Laguna Merbok, an upmarket resort style township.

Over the last few years, Paramount has successfully developed the mixed-development townships of Taman Patani Jaya, Taman Sutera and Bandar Laguna Merbok in Sungai Petani by delivering over 1,800 units of properties. All these townships bear testimony to the company progressive approach to property development. Following these successes, the company decided to establish the first property project in Klang Valley under Paramount Property Development Sdn Bhd. Kemuning Utama enjoyed overwhelming success since the project took off. Its innovative and quality products, geared to match purchasers’ requirements saw a take up rate of 99% of its early launches.

As a core business activity, property development will continue to contribute significantly to Paramount’s earnings leveraging on its proven records.

Construction Division:

Paramount Engineering & Construction Sdn Bhd (PECSB) is a construction-based company with activities in civil engineering and building works, and is wholly owned by Paramount Corporation Berhad.

PECSB’s established track record is proof of its commitment to be a long-term player in the construction industry with activities in civil engineering and building works. Over these 16 years, PECSB has been awarded projects amounting to more than RM1.0 billion, and PECSB has achieved remarkable growth in terms of profitability.

PECSB initially concentrated on residential projects in the Northern Region of Malaysia, but has since diversified and expanded its business operations into other areas such as infrastructure, high-rises, schools and other public works in the Klang Valley, Pahang and Melaka.

The Company embraces Quality Management Systems as an integrated and inherent part of its corporate culture to ensure that exacting standards are conscientiously practised. The company attained the MS ISO 9001:2000 certification and this has further enhanced the Company's efficiency and competitiveness.PECSB holds a Grade G7 licence approved by the Construction Industry Development Board Malaysia (CIDB), which permits the Company to undertake an unlimited amount of building works and specialised Civil Engineering projects. Grade G7 is the highest grade of licence issued by the Board.

PECSB also holds a PKK Class A licence, which permits the Company to tender for construction projects awarded by the government for unlimited contract amounts. PECSB has established a solid and close relationship with its suppliers over the years through goodwill and its reputation in the construction industry. This ensures fast and consistent supply of building materials and cement for all its construction projects.

• Tertiary Education

Established in 1983, and a pioneer in Malaysian private education, KDU College has continued to be an innovative leader in being the first SMART college in Malaysia. Through its SMART initiatives, KDU aims to provide a superior learning experience to nurture students to become independent and life-long learners. KDU College Sdn Bhd Bhd has 2 campuses. The two are strategically situated in Petaling Jaya and Penang.

KDU offers a wide range of programmes at Certificate, Diploma, Degree and Masters levels. The Certificate and Diploma courses are internally developed while the Degree and Masters programmes are conducted in association with prestigious universities in Australia and the UK.

• Primary and Secondary Education

The first purpose-built private smart school in Malaysia. Sekolah Sri KDU® was set up by Paramount Corporation Berhad who has a 20 year track record in education with its network of KDU Colleges. Sekolah Sri KDU® is based on the Malaysian Government Blue-Print on Smart Schools and has adopted some of the world's best practices. This provision of high quality primary and secondary education represents our initiative for downstream expansion in the educational sector.

• Executive Learning

The Executive Learning Network defines the unique learning experience at KMDC. Modeled after the best business and executive learning centres in the world, the people at KMDC realize the limitations of the traditional lecture-based learning process. To ensure that learning members are exposed to the absolute learning experience and executive education that goes beyond the framework of theories – and to enable professionals to immediately utilize their enhanced management and leadership capabilities – KMDC provides the most effective learning and professional development solutions.

• Language School

KDU International Language Training School (KILTS) is strategically located at the famous "Three Gorges Square", Shapingba, commonly known as the educational hub of Chongqing and home to about 25 universities. The centre is easily accessible via public transport.

KILTS commenced operations in the fourth quarter of 2004 and achieved an enrollment of 647 students in 2005.

KILTS's emphasis is on quality teaching methodology and materials which are mainly devloped in-house by its academic team comprising experienced English native speakers from New Zealand, United States and United Kingdom. KILTS offers a wide range of programmes, from pre-school to working professional level as well as customised courses for corporations and training on a one-to-one basis. KILTS also offer online programmes in collaboration with ACL English Solutions, an Australian company.

Other Division

Paramount Corporation Berhad (Paramount) is also involved in investment and plantation. Paramount Global Assets Sdn Bhd, Paramount’s investment arm, holds a 20% share in Jerneh Insurance Bhd.

Financial Performance:

Year 2002 2003 2004 2005 2006 Average

ROE 5.72 7.47 7.50 15.54 15.06 10.26 > 10

ROA 4.28 3.86 3.69 8.02 9.35 5.84 <>

Total Liabilities : Equity = 32.30 : 67.70

D/E Ratio = 0.09

P/E ratio = 5.1

DY = 5.56%

Average Revenue Growth Rate = 26.74% (5 years)

Average Earnings Growth Rate = 48.06% (5 years)

Supporting Value:

1. NTA per share (as at 30/9/07) = RM4.08 > RM2.43 (as at 8/1/08)

2. The management level staff especially the director level starting to purchase company share.

3. The increase of the efficiency of the management level. (can also refer to the increasing ROE).

4. Low D/E ratio.

5. Strong cash flow with RM134millions in hand.

6. The group is currently trading at 55% discount to its NTA/share of RM4.08.

7. The group constantly come out with Employee Share Option Scheme in year 2007.

8. Aquisition of more landbank in Klang Valley area.

9. The launch of the new phases (Phase 6 & 8) at Bandar Laguna Merbok, Sungai Petani.

10. The stable growth of 6%-7% of the Education Division, especially the expansion in China market.

Upcoming Projects:

1. The new phase of Bandar Laguna Merbok (Phase 6, Malay Lots).

2. The lauch of the new programes from Education Division.

Conclusion:

Paramount Corporation Berhad is a company with strong cash flow with very low debt ratio. The company currently trading at more than 50% discount to its NTA/share. It also showed an improvement effeciecy of the management team. With the new government policy and project is also a great affect on the property industry in the future. (It can showed from the great respond from the launch of the EPF 2nd account loan payment scheme) As a conclusion, Paramount Corporation Berhad is an undervalue stock in the current market.

谢谢支持！

此部落格开始至今，我收到许多邮件。谢谢大家的支持与鼓励。

大家能在此提出大家认为是被市场忽略或低估的股项，大家一起讨论与分享，以及收集资料。这样能确保我们在更深入了解某公司的情况下购入股票，降低风险。

希望大家能继续支持，给于意见，一起学习！

谢！

请问您是因为什么原因将您手上的股票卖出的呢？

请问你有没有试过这样的经验，心痛太早把股票卖了？买了后它不断创新高？

记得在2004年初，我开始研究Dialog这只股票。在当时有许多分析家都纷纷讨论原油在未来的趋势。在各大报章上都开始出现类似新闻。我也纷纷加入研究希望能捞回一笔。

由于当时的我是刚开始学习基本投资，能收集资料的来源不多。可是我对Dialog这只股却情有独钟。我发现Dialog手上的现金时超强，甚至借钱给需要现金的金融机构收取利息。当时的我还很单纯，不懂得如果一家公司拥有太多的现金而美好好利用来发展业务不是一件好事。于是我就在13-5-2004以每股RM0.475的价钱买入3000股。

其实当时Dialog的情况更现在的Keladi蛮相识，也就是刚刚1 split to 10. 一分了过后，成交量不断增加，然后就静了下来。就算是原油相关股项都备受关注，蠢蠢欲动，也没人问津。当时的报章都把原油的去向成为重点新闻，推荐原油相关公司如：SCOMI，Petronas，SAPURACREST，SHELL等公司，就是没有Dialog的份。很多分析家也推荐原油相关公司，也没有把它纳入投资组合。

还记得当时在我买入Dialog过后两三个月，它开始下跌，跌到大约RM0.395。我就问了我投资股票多年的亲戚，Dialog能买吗？他们都笑着说，这样便宜的股票能买吗！不会起的啦！要买都买Scomi或其他的啦！我听了后顿时心都碎了。我想我不是那么没眼光吧，我看了那么多投资的书难道是白费的吗？他们随便买都好过我吗？那么我研究这么多干什么？同时我也在某个forum里推荐此股票，可是大家给我的恢复都是负面的。

可是我不甘心，我继续收集资料，阅读更多书籍学习，最终我还是认为Dialog是间超低估的公司。以它平均每年超过10%的ROE，难道不比其他原油相关公司强吗？在加上公司拥有超强的现金流，没有负债，就算经济风暴突然降临，也不需害怕。（因为通常经济风暴来临，第一位最担心和忙碌一定是银行）。可是在过不久后，Dialog跌到了每股RM0.33，然后在那儿徘徊了一段时间，我于是再买进10，000股。现在平均成本大约每股RM0.36。同时，我也说服我爸和弟弟买入，他们也买了一些。

当时我对Dialog所得的分析如下：

9年平均ROE = 15.03% 〉15%
9年平均EPS Growth Rate = 17.84% 〉15%
D/E ratio = 0.013 <>Net Profit Margin = 20.26%