YOCB Remains On Track

YOCB FY14Q1 Financial Result

YOCB	FY14Q1	FY13Q4	FY13Q3	FY13Q2	FY13Q1
Revenue	46.5	40.6	45.1	50.1	42.0
PBT	7.1	5.2	7.6	7.6	7.0
PBT%	15.3	12.8	16.8	15.1	16.7
PAT	5.2	3.9	5.6	5.6	5.1
Total Equity	144.6	139.3	138.4	132.8	129.6
Total Assets	178.9	177.9	165.4	163.4	164.0
T/Receivables	41.1	40.0	46.8	45.7	39.3
Inventories	62.3	57.2	50.1	51.9	57.2
Cash	36.4	41.4	28.8	25.7	27.2
Total Liab	34.3	38.6	27.0	30.6	34.4
T/Payables	8.0	11.6	8.7	11.6	7.7
ST Borrow	23.2	24.1	15.1	16.0	24.0
LT Borrow	0.0	0.0	0.0	0.0	0.0
Net CF	-5.0	11.5	-1.1	-4.2	-2.7
Operation	-0.7	12.6	8.9	2.1	-5.1
Investment	-0.2	-2.0	-1.8	-1.5	-0.8
Financing	-4.1	0.9	-8.1	-4.8	3.3
EPS	3.27	2.44	3.51	3.53	3.18
NAS	0.90	0.87	0.87	0.83	0.81
Net D/E	NC	NC	NC	NC	NC

YOCB recorded a decent financial quarter, with its revenue and net profit increase 10.7% & 2.9% YoY compared to previous FY2013 first quarter.

YOCB's performance depends on seasonality. Its better performance in current quarter compared to previous quarter of FY13Q4 is due to higher sales during Hari Raya Puasa, especially the consignment and boutique sales.

The next 2 quarters (Oct 13 to Mac 14) will be YOCB's traditional strong quarters, as the year-end sales and Chinese New Year fall into this 2 quarters. I expect YOCB can achieve RM6mil net profit in each of these 2 quarters.

YOCB is in the midst of expansion. It has just bought a piece of land adjacent to its Nilai factory in September with RM5.7mil for future expansion. For the last FY, YOCB has launched new furniture related products which should be chairs and coffee stools.

       Home's Harmony chair

Thus, my conservative net profit forecast for YOCB in FY2014 will be RM21mil. This will give a forecast EPS of 13.1sen and target price of RM1.31 at PE ratio of 10x.

Though its growth may not be very impressive, YOCB gives fairly good dividend and are currently traded at a low forward PE of 6.6x and slightly under its book value of 90sen.

YOCB has earlier declared a final single tier 2sen dividend for its FY2013, making it a total of 4sen dividend with a yield of 4.6% at share price of 87sen. Its total dividend for FY2012 is 3.5sen.

Thus I will continue to hold YOCB and may buy more when I have extra money and nothing better to buy.