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23 November 2012
Results Note
OUTPERFORM
Price: Target Price:
Share Price Performance
RM3.19 RM3.64
ay -
ar
No
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Stock Information
Bloomberg Ticker Market Cap (RM m) Issued shares 52-week range (H) 52-week range (L) 3-mth avg daily vol: Free Float Beta KRI MK Equity 1,020.0 319.7 3.67 2.97 261,495 37% 0.9
Major Shareholders
KOSSAN HOLDINGS S/B KWSP EPF 50.9% 7.6% 5.0%
Outlook
Change to Forecasts
Rating
Valuation
Risks
PP7004/02/2013(031762)
KENANGA RESEARCH
No
Ja
Dividends
12
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23 November 2012
Result Highlight 3Q FY12 74.1 41.5 40.0 29.2 9.1 5.0 23.0% 12.9% 12.4% 9.1% 25.0% 2Q FY12 57.9 32.6 31.1 23.6 7.4 0.0 19.0% 10.7% 10.2% 7.8% 22.6% Q-o-Q Chg 28.1% 27.2% 28.7% 23.7% 23.7% N.M. 3Q FY11 43.0 32.9 31.1 23.6 7.4 3.0 15.4% 11.8% 11.2% 8.5% 22.9% Y-o-Y Chg 72.4% 26.1% 28.6% 23.6% 23.7% N.M. 9M FY12 173.1 104.4 99.7 74.8 23.4 5.0 18.9% 11.4% 10.9% 8.2% 23.3% 9M FY11 121.6 91.4 85.7 67.5 21.1 3.0 15.0% 11.3% 10.6% 8.3% 19.8% Y-o-Y Chg 42.4% 14.3% 16.4% 10.9% 10.7% N.M.
FY Dec (RMm) Turnover EBIT PBT Net Profit (NP) Core EPS (sen) DPS (sen) EBITDA margin EBIT margin PBT margin NP margin Effective tax rate
FY Dec (RMm) Segment Revenue Gloves Technical rubber products Others Total Segment PBT Gloves Technical rubber products Others Total
Forward PBV
PRICE (RM) PBV 2.3 x PBV 1.0 x PBV 2.8 x PBV 1.5 x PBV 1.9 x
6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 Jun-08 Jun-09 Jun-10 Jun-11 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Sep-08 Sep-09 Sep-10 Sep-11 Jun-12 Sep-12 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11
5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Jun-08 Jun-09 Jun-10 Jun-11 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Jun-12
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KENANGA RESEARCH
Stock Ratings are defined as follows: Stock Recommendations OUTPERFORM : A particular stocks Expected Total Return is MORE than 10% (an approximation to the 5-year annualised Total Return of FBMKLCI of 10.2%). A particular stocks Expected Total Return is WITHIN the range of 3% to 10%. A particular stocks Expected Total Return is LESS than 3% (an approximation to the 12-month Fixed Deposit Rate of 3.15% as a proxy to Risk-Free Rate).
Sector Recommendations*** OVERWEIGHT NEUTRAL UNDERWEIGHT : : : A particular stocks Expected Total Return is MORE than 10% (an approximation to the 5-year annualised Total Return of FBMKLCI of 10.2%). A particular stocks Expected Total Return is WITHIN the range of 3% to 10%. A particular stocks Expected Total Return is LESS than 3% (an approximation to the 12-month Fixed Deposit Rate of 3.15% as a proxy to Risk-Free Rate).
***Sector recommendations are defined based on market capitalisation weighted average expected total return for stocks under our coverage.
This document has been prepared for general circulation based on information obtained from sources believed to be reliable but we do not make any representations as to its accuracy or completeness. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may read this document. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees. Kenanga Investment Bank Berhad accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or any solicitations of an offer to buy or sell any securities. Kenanga Investment Bank Berhad and its associates, their directors, and/or employees may have positions in, and may effect transactions in securities mentioned herein from time to time in the open market or otherwise, and may receive brokerage fees or act as principal or agent in dealings with respect to these companies. Published and printed by: KENANGA INVESTMENT BANK BERHAD (15678-H) 8th Floor, Kenanga International, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia Telephone: (603) 2166 6822 Facsimile: (603) 2166 6823 Website: www.kenangaresearch.com Chan Ken Yew Head of Research
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KENANGA RESEARCH