YOCB: Slow & Steady

YOCB FY14Q3 Financial Result

YOCB	FY14Q3	FY14Q2	FY14Q1	FY13Q4	FY13Q3
Revenue	47.2	50.7	46.5	40.6	45.1
PBT	7.8	9.8	7.1	5.2	7.6
PBT%	16.5	19.3	15.3	12.8	16.8
PAT	5.9	6.9	5.2	3.9	5.6
Total Equity	154.2	148.3	144.6	139.3	138.4
Total Assets	195.6	195.6	178.9	177.9	165.4
Trade Receivables	49.7	56.5	41.1	40.0	46.8
Inventories	69.2	68.6	62.3	57.2	50.1
Cash	32.6	31.8	36.4	41.4	28.8
Total Liabilities	41.4	47.3	34.3	38.6	27.0
Trade Payables	8.2	14.0	8.0	11.6	8.7
ST Borrowings	29.0	29.0	23.2	24.1	15.1
LT Borrowings	0.0	0.0	0.0	0.0	0.0
Net Cash Flow	-8.7	-9.6	-5.0	11.5	-1.1
Operation	-0.8	-10.9	-0.7	12.6	8.9
Investment	-6.4	-0.3	-0.2	-2.0	-1.8
Financing	-1.6	1.7	-4.1	0.9	-8.1
EPS	3.68	4.34	3.27	2.44	3.51
NAS	0.96	0.93	0.90	0.87	0.87
Net D/E Ratio	Net Cash	Net Cash	Net Cash	Net Cash	Net Cash

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.