4243 WTK

昨天，也就是星期五，股市看起来有点点反弹，上升股438只和下跌股249只。虽然看起来是有点点反弹，但是股市先生的心情难测，随时随刻在下星期一耍个脾气给你下个10点或20点。不说股市了，有时旁身于外是件好事，至少心情不会被影响然后天天笑口常开。那我们来说股票吧，哈哈。。WTK是间以木材为主的公司但是它在木材的Profit Margin不到4%，是个悲观的结局吗？不过它除了木材为业，也有种植，铝箔和磁带，地产和最新的石油和天然气。董事局对新的投资领域——石油和天然气很有信心同时也可以带给集团不错的利润。另外，WTK是2015年冷眼新投资的公司。不知道冷眼效应会不会见效呢？因为WTK最近的业绩真的蛮差的。。。功课如下：

Data Analysis

• Free cash flow yield, CY is less than the fixed deposit rate in Malaysia. So not attractive on CY.
• Average growth rate of EPS in 5 years is around 19% but EPS's CAGR get depressed result with 6% annually.

• Profit margin is not stable upheld in each year. And less than 10% net profit in every sales.

• WTK's business activity is not stable due to profit in fluctuation condition; sometimes its result is worse than last years.

• Dividend payout is maintained at above 20% of net profit.

• Cash of company is accumulative and surpass level of RM 300 million. Its cash per share is worth RM 0.65. This is approximately 62% of its shares price.

• Company's free cash flow is low enough due to it is keep expanding its business by acquire new fixed asset.

• WTK such a cash cow company, its market capitalization is worth RM 500 million but it is holding around RM 313 million of cash.

• On the other hand, WTK's total borrowing is almost same amount with cash in company. It’s borrowing per share same as cash per share with RM0.65.

• So, by deducted cash with borrowing, WTK is left RM 291 million of debt. It is net debt company.

• WTK's share price is pretty stable along the years because it is around RM1 and the average closed price in the end of year is RM1.17, higher than the current price.

• RHB-OSK is giving the target price with RM1.15.

• Due to its shareholder equity very high, my account based earning valuation model giving WTK with higher intrinsic value of RM2.16, this is 52% margin of safety.

• NTA is higher than the current price now, there are different of RM1.71 or 162% between both. Quite high on it.

• With the latest 4 quarter of result, current PE is 15.73. This is around the average KLCI PE.

• DY is not attractive due to very low.

• ROE of company is very little with 2.87% in year 2014. This is due to high equity and low profit of company. Management maybe not using the equity efficiently.

Annual Report 2014 Analysis

• There are 6 division of WTK, which is Oil palm/ forest plantation, Timber, Tapes, Foil, Property and Oil & Gas. 

• Revenue and net profit has a decreased of 5.3% and 21.2% respectively compared with previous year.

• Director explained mainly attributed to the loss sustained in the Group's oil palm plantation and weak contribution from the packaging division.

• Timber division is lower by 2.8% compared with previous year. Due to high consumption tax in Japan, there is a drop of 10% in the sales volume for plywood.

• Due to write off previously capitalized cost and charge related expense for these matured area, oil palm division recorded pre-tax loss of RM9 million.

• Packaging division (manufacturing of tapes and foil)'s revenue also had a drop of 15.5% compared with previous year.

• WTK's timber division performance is guided generally by the Japanese housing.

• Company remain "cautiously optimistic" of prospects in Japan and confident for the boost plan for infrastructure, construction and services in India.

• WTK's planting programme expected completed by 2018.

• WTK also confident for the new step of participation in oil and gas industry.

• The receivable is decreased with RM 66,862,000; this is a pusher on cash of WTK.

• WTK may be using the cash from debtor to purchasing inventories and acquisition of subsidiary.

• The new subsidiary acquired is named Alanya Marine Ventures Sdn. Bhd (AMV). WTK is using cash amounting up to RM38, 250,000 and the issuance of 43,331,164 new ordinary shares at issue price of RM1.30.

• WTK venture into the oil and gas industry via AMV’s interest in Nautical Returns Sdn. Bhd (NRSB).

• Director confident about the NRSB able to achieve minimum profit after tax of RM 10,945,268 and RM 17,189,198 in year 2015 and 2016 respectively.

• From the diagram above, overall performance of WTK is not well. 

• Fong SiLing (冷眼) was acquired 5,000,000 or 1.05% of shareholding in year 2015.

• Reason of Fong SiLing is shareholder maybe he is looking good for the new step in oil & gas industry of WTK.

• Datuk Wong Kie Yik who is the Chairman of BOD is keep buying the WTK shares. He was acquired total 534,000 shares with average price of RM 1.12 from 9 Jan until 17 Jun 2015.

• Company has an action of share buy back on 3/3/2015 with 10,000 shares at RM1.17.

Q1''2015 Analysis

• From the diagram above, overall performance of WTK is not well. 

• Drawdown of trade financing facilities with amount RM 51,937,000 make the positive financing cash flow result.

• Highlight of profit before tax compared with Q1''2014

1. Revenue of Q1''2015 has a drop of 5.79%.
2. Net profit recorded worst with drop of 65.20%.
3. Oil and Gas's RM 180,000 revenue produce RM 1,650,000 profit before tax and this profit contributed 22% of total profit in Q1''2015. This was derived from the provision of Accommodation Workboats (AWBs).
4. Timber recorded drop of 61.70%. This was mainly due to continued wet weather condition and festive seasons.
5. Plantation's loss increased by RM1,791,000. Mainly due to insufficient fresh fruit bunches production volume coupled with weak (Crude Palm Oils) CPO prices to cover the operational costs.
6. Manufacturing and trading segment also had a drop with 49% and 11% respectively. Mainly due to the reduced volume for foil products. 

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