7229 Favco

美国 FED 终于在前两天宣布升息0.25%了，这是美国踏入更强国的第一步，毕竟美国是各国家里是最突出的那位而且全部国家都以它为头。另外耶伦在未来会慢慢地把息升去1.25%，所以以后可能还需要升4次息了。然后，在美国宣布升息的当天，世界各地的股市跟着美国一起跳高，不过跳高的下一天就拉着降落伞紧急降落。最后，美国的升息会对世界的股市和经济有什么影响呢？个人觉得短期内美国会强势然后其他国家为了不让待在自己国家的外资跑去美国所以也跟着一起升息，“升息潮流”会不会在明年实现呢？这些就让时间为我们证明吧。另外在这里介绍 Favco 的功课：

（温馨提示：用chrome的朋友可以在本图按右键然后再按“Open image in new tab"，这样会比较清楚） 

Company Overview

·         The principal activities of FFB's subsidiaries are designing, manufacturing, supply, servicing, trading and renting of cranes.

·         Four main cranes - Tower cranes, Offshore cranes, Crawler cranes and Wharf cranes.

·         Company website: http://www.favellefavco.com/

Personal Comment

·         EPS recorded CAGR of 25.32% from year 2010 to 2014.

·         From law of 72, 25.32% return may double our capital in 2.8 years. High growth rate of return is one of reason Favco's PE low as 6 currently.

·         Favco's total liabilities actually mainly build up by trade payable and this trade payable is going seriously by yearly. This may one of the weaknesses Favco.

·         High payable and net negative trade may show Favco is unable to pay off their creditor.

·         Favco's effort on clearing its short term borrowing can detect clearly from year 2010 to 2014. It is diminishing and going zero in last year.

·         ROE is striking through the years too; it is recorded 19% last year. It is pass my ROE target on criteria to choose firm.

·         Investment Master, Cold Eye always suggests his follower to deal the company's share during its PE is under 10 and Favco's PE is under 10 every year.

·         Free cash flow of Favco is attractive as it is growing every year, it is recorded CAGR of 44.36% within latest four years.

·         As current market trend is bottom tide of international oil price, it may affect Favco's business activity but I think it may a tiny effect to Favco's business is diversified by heavy lifting in construction area.

·         Favco also able bring us least 4% of return which derived from DY 4%. From view on EPS, Favco is categorized as growing stock.

Additional Information

·         Latest Q3''2015 report mention Favco has outstanding order book of RM 776 million as at 18/11/2015.

·         Order book mainly builds by global oil and gas, shipyard, construction and wind turbine industries.

·         Revenue of Favco divided into Inside Malaysia and Outside Malaysia (reports no mention detail revenue of outside malaysia), both segment of revenue is approximately balance.

·         Outside Malaysia include Singapore, United State, Australia, Denmark and China. China is the new market explored by Favco currently.

·         Listed public company Muhibbah Engineering (M) Bhd (5703) is holding 60% of shareholding. Favco is one of the subsidiaries of Muhibbah Engineering.

·         Price Target of investment firm:

1. RHB-OSK - RM 2.84 (update 25/8/2015)

2. MIDF - RM 3.30 (update 4/8/2015)

·         Chart showing the data from year 2011 to 2014 and include the latest Q3''2015.

·         Revenue is hiking from 385 million to 798 million and there is uptrend.

·         Revenue and profit look forward to break new high again in annual report 2015.

·         Dividend payout exceeds 50% in year 2014 and achieves 8.73% DY last year.

·         Profit margin also maintained around 10%.

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