NHFATT–Fundamental Analysis (24 Mar 2014)

NHFATT Analysis:-

Excel – http://1drv.ms/1oSY1cl

My View:-

– Market Timing/Fair Value:
  – EY%: Buy below 1.78, sell above 2.23
  – Absolute PE: 2.85 (MOS: 1.9%)
– In the last 5 years, its top and bottom lines have remained flat. Moving forward, NHFATT’s future business growth will depend on how well its overseas exports perform (especially Indonesia), and its success in defending its home turf from imports. NHFATT is just beginning to increase its presence in Indonesia and China. Indonesia’s car volume is almost twice the size of Malaysia’s and is still growing. Despite this, it could take some time before the benefits are materialised and even then there are still uncertainties on whether it would be successful.
– Its share price has doubled in 5 years but its share price is still at a 33% discount to its book value. However, because of flat earnings, constant dividends paid out, and the increase in share price from 2009 to 2013, its dividend yield based on the average prices has come down from 7.4% to 4.5%.
– Besides, its CROIC and ROIC were declining in the past 7 years.
– I will keep this counter in the Discontinued List.

Latest Financial – Q4 2013 Financial Report (26 Feb 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1548869

At the time of writing, I did not own shares of NHFATT.

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