HEIM: Earnings Soared

Results Update

In QE30/9/2019, HEIM's net profit increased by 31% q-o-q or 57% y-o-y to RM103 million while turnover rose 18% q-o-q and y-o-y to RM602 million. Revenue grew by 18% y-o-y, mainly driven by improved sales performance across all core brands and new product launches. Excluding the Sales and Services Tax (“SST”) impact, the Group revenue grew by 11%. Group profit before tax (“PBT”) rose 39% on the back of revenue growth and improved cost efficiency as well as the timing of commercial spend for new product launches executed in Q3.


Table: HEIM's last 8 quarterly results

 
Graph: HEIM's last 56 quarterly results

Financial Position

As at 30/9/2019, Heim's financial position is deemed adequate with current ratio at 0.94 time while gearing ratio was at 2.06 times. Under a less-than capable management, I would rate these ratios should be a concern. However, Heim -like Nestle - is a well-managed MNC which capital management is carried out to maximize return to shareholders. Thus, its capital structure & working capital management is performed to an "extreme" to weed out unnecessary fat.

Valuation

HEIM (closed at RM25.90 yesterday) is now trading at a trailing PER of 24.3 times (based on last 4 quarters' EPS of 106.52 sen). Its dividend yield is decent at 3.7%. Based on PER and DY, HEIM is deemed fairly attractive.

Technical Outlook

HEIM is in an long-term uptrend line. Its immediate support comes from the horizontal line at RM25.00.


Chart: HEIM's weekly chart as at Nov 28, 2019 (Source: MalaysiaStock.Biz) 


Conclusion

Based on good financial performance, fairly attractive valuation & positive technical outlook, HEIM is a good stock for your investment portfolio.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

When Heavyweights Dropped

Yesterday we saw a few heavyweights blue chip stocks dropping sharply. Where are the support and resistance and what are their near term outlook?

1. CARLSBG

    Support: RM17.30 (H) & RM16.00 (UPT)

    Resistance: RM18.80 (H) & RM20.00 (H)

    Outlook: Intermediate uptrend line, S1-S1 is still intact.

2. HEIM

    Support: RM17.60 (H) & RM16.40 (H)

    Resistance: RM19.000 (H) & RM20.00 (H)

    Outlook: Intermediate uptrend line, S1-S1 is broken. Long-term uptrend line, SS is intact.  

3. AJI

    Support: RM20.00 (H) & RM19.00 (H)

    Resistance: RM21.00 (H) & RM22.00 (H)

    Outlook: Intermediate uptrend line, S1-S1 broke in June. Sideways movement ahead. 

4. DLADY

    Support: RM63.00 (UPT)

    Outlook: Long-term uptrend line, SS is intact. 

5. F&N

    Support: RM36.00 (H) & RM33.00 (H)

    Resistance: RM38.00 (H) & RM40.00 (H)

    Outlook: Medium-term uptrend line, SS is broken. Sideways movement ahead. 

3. KESM

    Support: RM13.00 (H) & RM10.00 (H)

    Resistance: RM14.60 (H) & RM16.00 (H)

    Outlook: Intermediate uptrend line, SS is broken. Sideways ended. Downtrend has begun.

HEIM: Earnings Soared

Results Update

In QE31/12/2016, HEIM's net profit increased by 84% q-o-q or 15% y-o-y to RM105 million while turnover rose 50% q-o-q or 10% q-o-q to RM578 million. Revenue rose sharply q-o-q principally driven by higher volumes from festive demand, improved brand portfolio performance and the stabilization of the market following lower volumes observed in the immediate preceding quarter. PBT rose 63.4% q-o-q on the back of increased revenue and timing of commercial spend. PAT rose more than PBT due to lower tax rate as a result of RM13.4 million deferred tax used to reduce tax charge.


Table: HEIM's last 8 quarterly results

 
Graph: HEIM's last 45 quarterly results

Valuation

HEIM (closed at RM15.92 yesterday) is now trading at a trailing PER of 17.6 times (based on last 4 quarters' EPS of 90.47 sen). Its dividend yield is very attractive at 6.0%. Based on PER & DY, HEIM is deemed fairly attractive.

Technical Outlook

HEIM is in an long-term uptrend line. Its immediate support comes from the horizontal line at RM15.90-16.00.


Chart: HEIM's weekly chart as at Feb 15, 2017 (Source: MalaysiaStock.Biz)


Conclusion

Based on good financial performance, fairly attractive valuation & positive technical outlook, HEIM could be a good stock for your investment portfolio.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

HEIM: Earnings Continued to Rise

Results Update

Heineken Malaysia Bhd ('HEIM') has just announced its results for QE30/6/2016. Its net profit increased by 20% q-o-q or 38% y-o-y to RM60.9 million while turnover was unchanged q-o-q but rose 16% q-o-q to RM460 million. HEIM's PBt rose 16% q-o-q due to different timing of branding building & promotional activities.


Table: HEIM's last 8 quarterly results

From Chart 1 below, we can see that HEIM's top-line has been growing steadily. In the last 2 years, bottom-line has finally inched higher- brought on by higher profit margins.


Chart 1: HEIM's last 43 quarterly results

Valuation

HEIM (closed at RM16.92 yesterday) is now trading at a trailing PER of 19.2 times (based on last 4 quarters' EPS of 87.94 sen). Its dividend yield is fairly reasonable at 5.0%. Based on last year's earnings growth of about 24%, PEG ratio can be computed to be 0.8 x. All these multiples show that HEIM is still fairly attractive.

Technical Outlook

HEIM has broken above its triangle at RM14.50-15.00. The first projected target is RM17.00-17.50.


Chart 2: HEIM's weekly chart as at July 18, 2016 (Source: Shareinvestor.com)

If foreign funds are hungry enough to pay for decent yield, HEIM may retest its 2013 high of RM22.00.


Chart 3: HEIM's monthly chart as at July 18, 2016 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance, fairly attractive valuation & bullish technical outlook, HEIM could be a good stock for your investment portfolio.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, KESM.