vitrox (0097) mesdaq research

vitrox is listed at the half end year at 2005. according to peter lynx sectioning, it is under 周期性行业（电子业），也是快速增长的公司。

1. if you study its EPS growth, it is not attractive. But let us go into its financial report. In 2003, vitrox just a company that earning 6million a year. 2007, it is expected to record 12million net profit a year. means, it double its net profit over 5 years! if only compare 2006 and 2007, its EPS growth is 21%, current PE at 10 (when i bought RM0.79@1000 units).

2.Its average ROE is 29%, NTA is 0.25, compare to its issue share at RM0.10 each. with only listing more than 2 years, its NTA has been double.

3. under its industry current cycle (E&E) , this is recesscion time, but virtox still able to maintain a high growth in profit. it is a good news. 1st, you can wait for E&E growing, and virtox will be growing greater. 2nd, they are not facing any new competitors in next two years.

4. they have 10million cash in hand and no debts, means they are net cashflow company. currently, their net cash from operating activities still greater than cash used in investing activities.

5. according to bursa recent announcement, only 480 small shareholders of vitrox. this does not fulfill the requirement (1000 people). So, vitrox is expected to take some action to promote their share or giving bonus. thier NTA is RM0.25, which enable for at least 1 to 1 bonus issue.

6. Vitrox has invested in china to set up a branch. this is predicted to bring positive profit in the future. they also set up their office at USA. the only thing to worry is malaysia ringgit is too strong and will affected vitrox revenue growth.

7. there is no investor /mutual manager invest in this company as up to date.

8. their equities/liabilities is 9-12 times. which means they control debts very well and using cashflow from operating activities to maintain their growth.

9. according to PE=10, EPS growth is 29%, vitrox share price can up to 2 to 3 times.

any different idea, please let me know. i am willing to learn from mistake.

Goodluck!

keladi (6769) research

keladi has high EPS growth, 0.29 (average) and ROE is 0.09. this year is expected to hit on 0.17. it seems the management improve a lots.

my study is based on peter lynx theory.

but attracting point is keladi has a wisma in kedah, earning RM1.6 million every year for rental, this is passive income, contribute to its current FY, 4% of profit.

second point is keladi is planning to increase its biz margin in oil palm (great news). from current FY report, oil palm profit margin is 70% and property is 35%. so, oil palm is more profitable. currently, its revenue consists of 12% oil palm and 80% of property. anyway, from the past 3 years, they increase their margin in oil palm gradually and apply some land switch from property to plantation.if you study their revenue, revenue drops but net profit increase coz the oil palm margin is higher.

3rd point is keladi consider as “cyclic”, now is good time for property but maybe end in next two years. oil palm is different, i think oil demand will increase for at least another 5 years,due to crude oil price, weather change and population growth, shortage of land.

4th point, keladi core biz at Kulim,kedah. this help them with a unique market segment. i hope they do not come to KL, coz Klang valley is competative. Klang valley property company will never develop to kedah.so, keladi is monopoly there. if there is competitor go to kedah, they also have to buy land from keladi and joint venture with them.

5th point, keladi is having cash in hand nearly to RM30million and no long term debts. means they are net cash company. cash in hand per share is RM0.06 (after splits).you buy one unit and get rebate of cash up to RM0.06 per unit.

6th point, do not take figure from star online,they make mistake for keladi 1st Q result, it should be RM0.0046 and 2nd Q result is RM0.012. which mean recorded very well growing this year. half of EPS current FY is equal to
last year EPS already. they earn double times this year!

7th point, keladi only buy land for investing every 2-3 years. they operating profit is very stable, so, they enjoy net free cash flow every year.min is RM0.07 and max is RM0.32 per share.

finally, all about the price and figures. this year EPS is expected at RM0.03. buying price at RM0.24, PE is 7 (very low if compare to EPS growth 0.29). but after deduct EPS this year and cash in hand, actual PE is 4.31 !!!! their dividend is RM0.015 per share.

in addition, there is no fund manager invest and hold their share! coz keladi is a small local company at kedah.

hope more people to study this report and give me opinions. i am not expert in accounting. i do not mind if you share this research with frens and internet, as long as you let me know the mistake and feedback.

http://finance.yahoo.com/charts#chart4:symbol=6769.kl;range=my;indicator=dividend+split+sma(200)+volume+rsi;charttype=line;crosshair=on;logscale=on;source=undefined