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1
Iman Sahafzadeh 1101600764
Kamran Ahangarani 1101600795
Elnaz Ataei 1091200742
Ahmad Muzaimi 1111600028
Dineshan 1111600023
Semester ID: 10135
Group ----
September
2011
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Astino Berhad2
Astino Berhad was incorporated in 2000 as a holding
company of the Astino Group comprising Ooi Joo Kee &
Brothers .
the company has established itselfas one of the leading
industrial enterprise in the field ofwood product, and newbuilding products with three major manufacturing plants
located at strategic locations in Malaysia.
The successes of Astino Berhad were built on the company's
commitment to strive for continuous improvement on quality
product and excellence in services.
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Weighted average cost of capital3
Investors use WACC as a tool to decide whether to invest. The 14.4%
represents the minimum rate of return at which Astino produces value
for its investors
2010 Rm Rf Rs Rb WACC
1.4145 11.75% 3.73% 15.08% 3.80% 14.40%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Rm Rf Rs Rb WACC
Astino
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Value of the Firm4
Astino is a leveraged company.
The company could use its debt to increase the value.
93%
7%
2006
S
B95%
5%
2007
S
B 88%
12%
2008
S
B
89%
11%
2009
S
B
94%
6%
2010
S
B
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Capital Structure5
The market demand for products is steadily increasing
throughout the year of ouranalysis. So they used their debt
and make profit for the company.
Astino
year 2006 2007 2008 2009 2010
Debt ratio 0.23 0.38 0.28 0.13 0.32
Debt to Equity Ratio 0.39 0.72 0.52 0.17 0.51
TIE 9.5312 11.2268 11.1395 6.0076 19.1624
0
0.10.20.30.4
0.50.60.70.8
2006 2007 2008 2009 2010
Astino
Debt ratio
Debt to EquityRatio
0.00
5.00
10.00
15.00
20.00
25.00
2006 2007 2008 2009 2010
Astino
TIE
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Dividend Policy6
Astino is well known for its well balanced financial policy. Its
demand for product are increasing steadily in the market.
The dividend paid is in the range of 3 sen to 5 sen
throughout the year of our review. The lowest in the period
which is 2008 and 2009 is due to the major shares buy back.
Astino
2006 2007 2008 2009 2010
dividend 0.04 0.05 0.03 0.03 0.05
Earning per share 0.08 0.13 0.2 0.07 0.16
Payout Ratio 0.32 0.29 0.11 0.83 0.25
00.2
0.4
0.6
0.8
1
2006 2007 2008 2009 2010
Astino
Payout Ratio
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Net Working Capital7
There is no significant change in inventory period so
company needs to work on inventory period to
decrease its operating cycle if possible.
In 2010 payable period is decresed.
Inventory
Period
Payable
Period
Receivable
Period
Operating
Cycle Cash Cycle
Year ASTINO
2006 82.12 45.39 83.58 165.70 120.31
2007 92.62 31.88 77.62 170.24 138.36
2008 105.82 32.29 65.87 171.68 139.39
2009 94.44 36.24 65.83 160.27 124.03
2010 96.88 17.70 59.75 156.63 138.93
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Net Working Capital8
The trend of receivable period is decreasing to collect
the money from in short period.
The trend of payable period is decreasing same as
receivable.
0.00
20.00
40.00
60.00
80.00
100.00
120.00
2006 2007 2008 2009 2010
Astino
Inventory Period
Payable Period
Receivable Period
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Classic Berhad9
Classic Scenic Berhad (CSCENIC) was incorporated on 10 November
2003, and listed on the Second Board of the Bursa Malaysia Securities
Berhad (Bursa Securities) on 4 November 2004. Subsequently on 6 June
2006, it was transferred to the Main Board (Main Board and Second Board
merged and now known as Main Market) of the Bursa Securities. CSCENIC
is an investment holding company, with subsidiaries principally engaged
in the manufacturing of wooden picture frame mouldings, and wooden
pallets.
The first mouldinags were made in 1994, and in recent years, we have
emerged to be the largest wooden picture frame manufacturer and
exporter in Malaysia, and one of the biggest operations in the region as
well. Current manufacturing facility comprises of 6 factories spread over
an area of 500,000 sq. ft., and a 450 strong workforce. There is still a long
road ahead, the Group will continuously focus on strengthening its overall
management in relation to a continuous improvement strategy in all
aspects of the business and move on to greater heights on our road to
success.
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Weighted average cost of capital10
2010 Rm Rf Rs Rb WACC0.5407 11.75% 3.73% 8.07% 0.00% 8.07%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Rm Rf Rs Rb WACC
Classic
Series1
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Value of the Firm11
100%
0%
2006
S
B
100%
0%
2009
S
B 100
%
0%
2008
S
B
100%
0%
2009
S
B100%
0%
2010
S
B
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Capital Structure12
No debt
Unlevered
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Dividend Policy13
The company has been steadily paying a dividend of4 sen forthe year2006,2007and 2008. Then there was a major increasein 2009and 2010. it is only natural for Classic Scenic, which ispurely financed by shareholders to pay more dividends in caseof extra free cash flows, to make sure the shareholders remainpleased.
Classic
2006 2007 2008 2009 2010
dividend 0.04 0.04 0.04 0.07 0.09
Earning per share 0.09 0.09 0.07 0.07 0.1
Payout Ratio 0.48 0.48 0.46 1.02 0.91
0
0.2
0.4
0.6
0.8
1
1.2
2006 2007 2008 2009 2010
Classic
Payout Ratio
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Net Working Capital14
There is increase in receivable period and inventoryperiod because of that we can see a increase in cashcycle.
Inventory
PeriodPayable Period
Receivable
Period
Operating
CycleCash Cycle
Year Classic Scenic
2006 190.40 32.45 52.08 242.48 210.04
2007 237.80 33.37 58.98 296.78 263.41
2008 306.70 40.70 64.73 371.43 330.73
2009 342.03 38.99 54.64 396.67 357.68
2010 227.67 33.06 46.32 273.99 240.93
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Net Working Capital15
Decrease in cash cycle in 2010.
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
2006 2007 2008 2009 2010
Classic
Inventory Period
Payable Period
Receivable Period
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Dominant Berhad16
Dominant Enterprise Berhad is a public listed company on the
Main Board of Bursa Malaysia Securities Berhad.
Today, the company is proud to have eleven(11) subsidiaries
under its wings that are, among others, involved in the
manufacturing of environmentally friendly engineered woodmoldings, laminated wood panel products as well as the
distribution and export ofawide range ofwood products
worldwide
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Weighted average cost of capital17
A high WACC indicates that a company is spending a comparatively largeamount of Money in order to raise Capital, which means that the companymay be risky. On the other hand, a low WACC indicates that the companyacquires capital cheaply. Since our WACC is 8.26% is reasonable becauseit is almost in the middle ,it is not too risky and spending a large amount ofMoney for raising Capital.
2010 Rm Rf Rs Rb WACC
0.8409 11.75% 3.73% 10.48% 5.15% 8.26%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Rm Rf Rs Rb WACC
Dominant
2010
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Value of the Firm18
Dominant is a leveraged company .
Percentages of debt and equity are constant in recent
years.
59%
41%
2007
S
B 63%
37%
2007
S
B 54%
46%
2008
S
B
54%
46%
2010
S
B54%
46%
2009
S
B
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Capital structure19
It is obviously clear that our debt to equity ratio is decreasing In whole period. The name of this ratio says it all; this ratio shows how much your business is in
debt, making it an excellent way to check your businesss long-term solvency
It is obviously clear that our debt to equity ratio is decreasing
It is mean that company is more able to pay its loan and other debt and changeits value to more equity, which is very good sign for us.
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2006 2007 2008 2009 2010
Dominant
Debt ratio
Debt to Equity Ratio
0.002.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
2006 2007 2008 2009 2010
Dominant
TIE
Dominant
year 2006 2007 2008 2009 2010
Debt ratio 0.29 0.3 0.35 0.24 0.26
Debt to Equity Ratio 0.53 0.56 0.66 0.37 0.45
TIE 6.80 8.16 6.57 7.53 13.86
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Dividend Policy20
The dividend for the year2009was lower compared to the
rest because the companys revenue was 1/3 from the
revenues in the previous years. So that is why the directors
decided to declare only 1.5 sen dividend per share.
Dominant
2006 2007 2008 2009 2010
dividend 0.04 0.05 0.03 0.01 0.04
Earning per share 0.05 0.11 0.1 0.09 0.11
Payout Ratio 0.55 0.27 0.3 0.16 0.26
0
0.1
0.2
0.3
0.4
0.5
0.6
2006 2007 2008 2009 2010
Dominant
Payout Ratio
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Net Working Capital21
There is no significant change in payable and receivable
period , except in the last year
Inventory
Period
Payable
Period
Receivable
Period
Operating
CycleCash Cycle
Year Dominant
2006 68.95 35.61 73.50 142.45 106.84
2007 79.91 37.51 71.27 151.18 113.67
2008 83.43 32.32 72.77 156.19 123.88
2009 82.55 27.78 74.13 156.69 128.90
2010 91.86 32.87 70.39 162.25 129.38
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Net Working Capital22
There is no significant change in inventory period,
except in the last year the inventory period in increased.
they need to work on inventory period.
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
2006 2007 2008 2009 2010
Dominant
Inventory Period
Payable Period
Receivable Period
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HeveBord Berhad23
Company incoopared 16 Aug 1997
23 May 1999 listed in the first board
Company objectives:
STRIVE TO MAXIMIZE THE USAGE OF RUBBERWOOD
RESIDUES
INCREASE CAPACITY FOR PARTICLEBOARD AND VALUE
ADDED FINISHED PRODUCTS
CREATE MORE HIGH SKILL EMPLOYMENT
OPPORTUNITIES FOR MALAYSIANS
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Weighted average cost of capital24
2010 Rm Rf Rs Rb WACC
1.1312 11.63% 3.73% 12.67% 6.80% 7.25%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Rm Rf Rs Rb WACC
HeveaBoard
2010
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Value of the Firm 25
At 2006, Shares 45%, borrowing 55% In 2007 there was an increase, the company was growing, lot
of project to invest in, a lot of capital was needed.
2008, bing increase in borrowing, company was growingrapidly.
2009, start paying off debt, borrowing reduced to 77%
2010, borrowings reduced even more, company stable.
45%
55%
2006
S
B
33%
67%
2007
S
B
6%
94%
2008
S
B
23%
77%
2009
S
B
28%
72%
2010
S
B
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Capital Structure26
Debt ratio, 2009 and 2010 was a bit riskier in terms of leverage, the ability topayout the debt. Compared to previous years.
Debt equity, got lower over the years, less aggressive in financing theiroperations. In 2009, they have increased their shares, so they are leaningtowards inside financing as the directors of the company feel that it is not worththe risk.
TIE, 2009 onwards there is a steady increase, as the company has issuedshares and they have cash inside the company, so theyre able to pay off theirdebts.
HeveaBoard
year 2006 2007 2008 2009 2010
Debt ratio 0.51 0.51 0.5 0.47 0.42
Debt to Equity Ratio 1.8 1.75 1.55 1.25 0.99
TIE 3.19 1.01 0.99 2.58 3.42
0
0.5
1
1.5
2
2006 2007 2008 2009 2010
HeveaBord
Debt ratio
Debt to EquityRatio
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
2006 2007 2008 2009 2010
HeveaBord
TIE
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Dividend Policy27
The reason for the company not to pay out any dividends in
the year2009and 2010 to the shareholders is because the
company is growing, they are preparing to invest in otherbig
projects, hence the directors decided not to pay any
dividends to their shareholders.
HeveaBoard
2006 2007 2008 2009 2010
dividend 0.05 0.03 - - -
Earning per share 0.1 0.09 0.01 0.23 0.28
Payout Ratio 0.38 0.4 - - -
0
0.1
0.2
0.3
0.4
0.5
2006 2007 2008 2009 2010
HeveaBord
Payout Ratio
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Working Capital28
The company can manage their inventory, acc receivable, and accpayable rather well.
Confident can pay back their customers.
Cash cycle 2007, lowest. Starting from 2008 there was anincrease.
Both the payable and receivable period getting lower through the
years.
Inventory
Period
Payable
Period
Receivable
Period
Operating
CycleCash Cycle
Year HeveaBoard
2006 87.94 116.60 68.18 156.13 39.53
2007 61.89 100.45 50.85 112.73 12.29
2008 56.10 80.03 38.82 94.92 14.89
2009 72.53 77.69 39.87 112.40 34.71
2010 64.55 56.49 47.20 111.74 55.25
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Working Capital29
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2006 2007 2008 2009 2010
HeveaBord
Inventory Period
Payable Period
Receivable Period
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Minho Berhad30
The activities in which the Group is currently involved are
concerning timberand its related activities, which are logging
and manufacturing. This means, its all about timberand related
wood-based industries. To ensure that the Group is committed
to responsible stewardship of the environment throughout alloperations, the following environment policies have been
adopted.
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Weighted average cost of capital31
Minho
2010
Rm Rf Rs Rb WACC
1.4327 11.63% 3.73% 15.05% 6.30% 11.47%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Rm Rf Rs Rb WACC
Minho
2010
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Value of the Firm 32
Number of Shares remains
Only borrowings figure change
Less dependency on debt over the years
51%49%
2007
S
B 63%
37%
2008
S
B51%49%
2006
S
B
58%
42%
2009
S
B 65%
35%
2010
S
B
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Capital Structure33
Debt ratio never exceed of total assets
Debt ratio and Debt to Equity Downward sloping Trend
0
0.1
0.2
0.3
0.4
0.5
0.60.7
2006 2007 2008 2009 2010
Minho
Debt ratio
Debt to EquityRatio
0.00
1.00
2.00
3.00
4.00
5.00
2006 2007 2008 2009 2010
Minho
TIE
Minho
year 2006 2007 2008 2009 2010
Debt ratio 0.22 0.2 0.16 0.14 0.12
Debt to Equity Ratio 0.58 0.49 0.34 0.26 0.19
TIE 4.17 4.20 2.36 1.99 2.23
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Dividend Policy34
There were no dividends declared from the year2006 till the
year2010. From ouranalysis, we find that Minho is doing
well; hence they did not have to pay their shareholders
dividend. The shareholders can see the share prices
increasing each and every year. This gives them confidenceto remain and keep investing in the company.
Minho
2006 2007 2008 2009 2010
dividend - - - - -
Earning per share 0.14 0.12 0.12 0.02 -0.01
Payout Ratio - - - - -
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Net Working Capital35
No obvious trend
Receivable period always lesser than payable period.
Takes long time to sell their products
Suggestion Improve Inventory Period
Inventory
Period
Payable
Period
Receivable
Period
Operating
CycleCash Cycle
Year Minho
2006 120.43 75.33 70.74 191.16 115.83
2007 156.40 109.96 73.47 229.88 119.92
2008 197.43 135.36 81.85 279.28 143.93
2009 211.65 160.56 107.27 318.92 158.36
2010 171.73 123.31 91.52 263.25 139.94
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Net Working Capital36
Inventory period is the highest, followed by Payable
period and Receivable Period
0.00
50.00
100.00
150.00
200.00
250.00
2006 2007 2008 2009 2010
Minho
Inventory Period
Payable Period
Receivable Period
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