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Saturday, September 15, 2007

Dutch Lady Time

It's Dutch Lady time!
Every one know the Dutch Lady manufacture of sweetened condensed milk, milk powder, dairy products and fruit juice drnks.

Let's take a look how they perform durng this time bull market :


wow, impressive, has been double, or maybe triple if you buy at RM4.

What make it so good? Take a look on below stats:

2003 net earning 15millions

2004 net earning 20millions

2005 net earning 27millions

2006 net earning 43 millions

2007 2Q net earning 43 millions.

Omg, this counter is good. They have been given out the dividend as much as RM1.165 per share since last Q3 2006. This explain why the this counter worth PE 15 for today price RM11.80.

two things contribute to this high PE:

1st. growing earning power.

2nd good dividend.

I cant predict whether they will earn better in next year, but i believe that they cannot sustain giving out dividend in this way, earning 80 sen per share but giving out RM1.165 per share. You can observe that their shareholder equity is decreasing compare to last year. ( Most company will have increasing shareholder equity so that they can use the excess money to invest in their business and keep on growing.).

This share might have chance to go back to RM14 if the foreign investor is coming back..or else, keep it as defensive stock for dividend. (i doubt they can still continue to keep on growing , so as the dividend payout , better sell when observe there are some changes of dividend payout policy or staggering earning )

I prefer Maybulk than Dutchlady for dividend counter. Why? Maybulk paying a good dividend too, and i can see at newspaper they start "selling" transportation counter..Maybulk definitely will rise further..Good luck for Dutch lady shareholder too.


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