YOCB: So Far So Good

YOCB FY14Q2 Financial Result

YOCB (RM mil)	FY14Q2	FY14Q1	FY13Q4	FY13Q3	FY13Q2
Revenue	50.7	46.5	40.6	45.1	50.1
PBT	9.8	7.1	5.2	7.6	7.6
PBT%	19.3	15.3	12.8	16.8	15.1
PAT	6.9	5.2	3.9	5.6	5.6
Total Equity	148.3	144.6	139.3	138.4	132.8
Total Assets	195.6	178.9	177.9	165.4	163.4
Trade Receivables	56.5	41.1	40.0	46.8	45.7
Inventories	68.6	62.3	57.2	50.1	51.9
Cash	31.8	36.4	41.4	28.8	25.7
Total Liabilities	47.3	34.3	38.6	27.0	30.6
Trade Payables	14.0	8.0	11.6	8.7	11.6
ST Borrowings	29.0	23.2	24.1	15.1	16.0
LT Borrowings	0.0	0.0	0.0	0.0	0.0
Net Cash Flow	-9.6	-5.0	11.5	-1.1	-4.2
Operation	-10.9	-0.7	12.6	8.9	2.1
Investment	-0.3	-0.2	-2.0	-1.8	-1.5
Financing	1.7	-4.1	0.9	-8.1	-4.8
EPS	4.34	3.27	2.44	3.51	3.53
NAS	0.93	0.90	0.87	0.87	0.83
Net D/E Ratio	Net Cash	Net Cash	Net Cash	Net Cash	Net Cash

YOCB registers a marginal 1% increase in revenue YoY in its FY14Q2. However, PAT rises 23% in the same periods.

The better result is due to higher consignment and export sales, as well as lower operating cost.

Nevertheless, operation cash flow is rather poor with significant increase in trade receivables and to a lesser extent, inventories.

As a result, cash on hands reduces slightly but it still manage to stay in a net cash position.

For cumulative 6 months period, revenue increases 5.4% and net profit increases 14% to RM97.2mil and RM12.2mil respectively compared to corresponding period of last FY.

YOCB plans to increase its bed sheets production capacity by 50% by year 2015 after it acquired land for expansion last year.

As YOCB's brands are not market leader in Malaysia, its growth might be slow and limited domestically.

Oversea markets might have more potential to improve YOCB's top and bottom lines. However, it will still face stiff competition from local and China "low-cost" manufacturers. For FY2013, oversea sales accounted for 18% of its total revenue.

At the moment I'll keep my target price of RM1.31 for YOCB.