Buy KFIMA at 0.685

Bot KFIMA today at 0.685.

With latest 4th Q EPS 6.43, KFIMA closed the latest financial year with total EPS 17.7, with the share price of 0.685, the past PE stands at3.87, and the forward PE 6.43 x 4 =25.72; PE = 2.67!! NTA = 1.27, RoE = 13.94.

Let’s look at the latest quarter report which is the Q4.

If we compare present Q with last Q (Q3), what we see is the revenue is decreased from 100M to 76.6M but yet the net profit is increased from 13.85M to 26.22M. This caused by the decrease of the cost of sale for Q4 from 70M to 36.5M. Decrease of 25% in revenue but cost of sale decreased almost X1 (why??), no wander the profit for this quarter still better the Q3 *V*! If compared YTY, the revenue had increased as shows in SAM's blog which is from 309M to 368M. Not bad not bad!! Quarter EPS increased from 3.61 to 6.43 (Q3) and YTY had increased from 11.51 to 17.70. Look back to the history, NTA for KFIMA is increasing from 0.95 (06), 1.05 (07), 1.09 (08) and 1.27 (09). RoE is a bit >10% for year 07 and 08 and 09 is 13.94%.

For balance sheet, in term of Asset, not much change compared to last quarter and also compared to last financial year. 1 point to highlight is the trade receivables for KFIMA is 104M for latest financial year and it is increasing from 2007 ( 52.8M), 2008 (82.89M) and present 104M but the trade payable is quite stable ~5+M each year. hmm... any how, from QTQ, it is improving "a bit" from 109M to 104M compared to past Q. Let see how it will go in future (quite sensitive with these trade receivable and payable because of the MEGAN case. haha)

For Liabilities, both long and short term borrowing had decreased compared to last year. Is this mean KFIMA is not planning to expend or the management only plan to use what they have now to expend the company?? Other then that all are quite stable compared to last financial year. Some others key ratio for KFIMA: Current ratio = 1.26 D/E ratio = 0.07!! (Is it too low?)

For cash flow statement, what i can think of is the inventory is higher compared to last year. What this mean?

From the note, the profit increased mainly due to the contribution from each of the segment where else the increase in revenue compared to last year is mainly due to the contribution from the plantation segment. Hmm, she is not really making profit from the plantation segment huh?! haha. Any how, KFIMA is started to expend the Biochemical oil palm oil. Since 2007 and this should increase her profit.

Look back to the 天时地利人和, This stock was discovered by Neoguga, from SAM's blog and look at what he says:

>>>>>>

Neoguga said...

Just did some research on some companies and from my point of view i think it's a value to buy company to me.

From you Sun Tze Art of War tactic :-

KFIMA

Tien sir : Investment holding company with exposure to plantation. (oil palm)

Dili : Low PE (5.60 from RHB) + improved qe earning of 6.43eps

Ren Her : Volume also increasing but not as powerful as RCECAP.

So sifu, how is my application of your Sun Tzu Art of War? ^^

June 3, 2009 12:28 AM

<<<<<< So?

Lets try another example on KFIMA whether this 天时地利人和 tactic is workable or not in the share market *V*!

I will not holding long on KFIMA because i don't understand why they arenot borrowing money for expend. So once profit seen then will cabut.. haha.. I'm not yet a long term investor, at least not with KFIMA. *V*!!

Btw, thanks to 8year, your books really teach me a lot especially in financial analysis, but i still got a lot to learn as you can see that not much info i can understand from KFIMA financial results. *V*!