Sunday, January 26, 2014

Zhulian -Dragged by domestic sales (HwangDBS)

Zhulian Corp Bhd
KLCI : 1,814
FULLY VALUED RM4.61
Price Target : 12-Month RM 3.40 (Prev RM 3.90)

Dragged by domestic sales
• 4Q13 earnings below expectations; dragged by domestic sales
• Cut FY13-14 EPS by 17-19% in view of a challenging near-term outlook for Malaysia and Thailand markets
• Downgrade to Fully Valued with RM3.40 TP


Below expectations. Zhulian’s 4Q13 net profit fell 56% y-o-y to RM13.7m on the back of weaker revenue of RM78m (-34% y-o-y). FY13 net profit of RM121m (+3.3% y-o-y) was 92% of our full-year estimate. While the 4th quarter used to be the seasonally strongest of the year, this was not the case in 2013, and 4Q13 posted the lowest quarterly earnings in three years. The poor performance was largely due to poor domestic sales likely due to weaker consumer spending.

Meanwhile, the Group has declared its fourth interim and special net DPS of 3 sen and 4 sen respectively (cumulative net yield of 1.5%). This was within our expectations.

Cut FY14-15 EPS by 17-19%. We are cautious on Zhulian’s near-term earnings as consumer spending could continue to be dampened by the rising prices of general goods and services. Also, Zhulian’s Thailand market could face more challenges due to the ongoing political unrest. Hence, we cut FY14-15 EPS by 17-19% to 27-28 sen.

Downgrade to Fully Valued. The stock has gained 81% in 2013. At 17x 2014 earnings, the stock is now trading at +2 SD of its 8-year mean. We downgrade our rating to Fully Valued (from Hold) with a lower RM3.40 TP (from RM3.90) pegged to 12x FY15F EPS of 28 sen. In view of the more challenging outlook, we think its historical dividend payout of 60% is unlikely to surprise.



Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date: 23/01/14

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock