|Net Cash Flow||-8.7||-9.6||-5.0||11.5||-1.1|
|Net D/E Ratio||Net Cash||Net Cash||Net Cash||Net Cash||Net Cash|
Friday, 6 June 2014
YOCB: Slow & Steady
YOCB FY14Q3 Financial Result
As YOCB's business is seasonal, it is better to compare the results YoY.
From Jan-Mac 2014, both revenue and profit after tax improve marginally about 4-5% YoY, while profit margin remain almost the same.
For its balance sheet, the worrying part of fast increasing trade receivables in previous quarter is eased slightly, and the pace of increase in inventories also reduces.
Operation cash flow improves QoQ but overall cash flow year-to-date is still negative, mainly because of expense in investment. It is still in a net cash position though.
An interim dividend of 2 sen is declared. I expect another 2 sen dividend for FY14, with total 4 sen similar to FY13. The dividend yield will be 3.3% at RM1.20 a share.
There is nothing to shout about regarding this set of financial result. Next quarter will be YOCB's weakest quarter. However, there should be a slight improvement overall in FY14 compared to FY13.
Perhaps I should sell YOCB now, as it seems fully valued and the growth is slow.
However, I can see more of its brands and products in the market compared to 2-3 years back, mainly in Aeon which is currently expanding its presence in Malaysia aggressively.
I think with this reason, I will continue to hold YOCB's shares until I need cash one day.
Anyway, I hope that it can make a breakthrough in local hypermarkets as well as overseas market.