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1Q FY06 Results are out!!!
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Gallen
Senior |
14-Mar-2006 21:54
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Extracted from my blog http://kelongstocks.blogspot.com Please visit my blog for full details. Fundamental Analysis 1st quarter FY2006 results do not look encouraging at first glance when compared to 1st quarter FY2005, showing a 24% decline in net profit despite revenue rising 3%. However, if we compare 1st quarter FY2006 results to 4th quarter FY2005 results, the outlook is brighter. Compared to 4th quarter FY2005, revenues have increased 11% and net profit up 47% as margins improved to 18.7% (compared to 14.1% in 4th quarter FY2005). Average margins for 2005 were 20%. Expect 2nd quarter FY2006 to show continual improvement over 1st quarter FY2006. Although new products have higher margins, full year margins are forecasted at 20% to factor into account offsetting impact from possible further rise in raw material prices. Full year revenues and net profits are forecasted to rise 18% compared to FY2005. At current prices, stock is trading at a mere 5x forward P/E and trading below forecasted NTA of 61 cents. Relative to its nearest comparable Southern Packaging, it offers superior revenues, margins and an attractive dividend yield of 5%. Pegging China Flexible Packaging at 7x forward P/E yields fair value of 64 cents. |
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