HEIM – Fundamental Analysis (20 Jul 2016)

Excel – Download the analysis file

Latest Financial Report – Q4 2016 Financial Report (18 Jul 2016)

FY16 Q4 Results Highlight:

  • Q4FY16 versus Q4FY15
    • Revenue grew 15.6% from RM398m to RM460m due to as the strong sales led by Chinese New Year festival in 3QFY16 was sustained by the event of UEFA Euro 2016 in 4QFY16.
    • Profit before tax increased 21.5% from RM66m to RM80m.
    • Net profit increased 38.3% from RM44m to RM61m.
    • Earnings per share increased from 14.57 sen to 20.15 sen.
  • 12MFY16 versus 12MFY15
    • Revenue grew 5.7% from RM1.75b to RM1.85b.
    • Profit before tax for the period increased 20.4% from RM292m to RM352m.
    • Net profit increased 24% from RM214m to RM266m.
    • Earnings per share increased from 70.90 sen to 87.94 sen.
    • The improvement is mainly driven by higher sales and favourable product mix, while the enhancement efforts by the authorities to tackle contrabands have also helped.

Going Forward:

  • HEIM management (and I) remains confident that it will deliver commendable results for FY16 even if there are many uncertainties in the global economy.
  • In my opinion, fair value of HEIM is from 18 to 19 (Uncertainty Risk: HIGH).
  • I will continue to hold, but will not accumulate HEIM for the time being. Let it ride!

At the time of writing, I owned shares of HEIM.

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