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Alcoholic (KLSE) - Peer Comparison


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Alcoholic (KLSE) - Peer Comparison by L. C. Chong

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Alcoholic (KLSE) - Peer Comparison

  1. 1. ALCOHOLIC INDUSTRY PEER COMPARISON 12 April 2016 L. C. Chong ( and
  2. 2. DISCLAIMER I am NOT an investment advisor nor a financial advisor, and no information provided here is to be interpreted as a suggestion to buy or sell securities. Stock analysis in this presentation may not neutral because I have incorporated my risk appetite and principles in the analysis. All figures in MYR and in '000s, except per share data 2
  3. 3. DECLARATION OF INTEREST • At the time of writing, I owned shares of GAB and CARLSBG.
  4. 4. SCOPE • Figures and ratios are based on the figures reported in Annual Report or the latest Q4 Quarterly Report (QR) • Comparisons are made merely based on financial figures • Growth drivers and risks/challenges are not covered here • Valuation is not covered in this analysis.
  5. 5. CHANGES • 3 Nov 2015 – First write up in PowerPoint format • 8 Nov 2015 – Applied new template • 12 Apr 2016 – Update with CARLSBG FY15Q4 and Annual Report 2015 figures
  6. 6. PRODUCT PORTFOLIO Source: AmResearch 27 Mar 2014
  7. 7. PROFITABILITY 0 100,000 200,000 300,000 400,000 FY2011 FY2012 FY2013 FY2014 FY2015 EBITA GAB CARLSBG
  8. 8. PROFITABILITY (CONT.) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY2011 FY2012 FY2013 FY2014 FY2015 EBITA Margin GAB CARLSBG EBITA growth of GAB and CARLSBG is uptrend despite of challenges in the industry. EBITA Margin of GAB is much higher than CARLSBG, but CARLSBG margin is getting closer to GAB.
  9. 9. PROFITABILITY (CONT.) Source: AmResearch 30 Sep 2013 Change in Excise Duty vs. EBIT Margins • EBIT margins for both GAB and CAB remained stable throughout the consecutive excise hikes in 2004- 2006. GAB's margin hovered around14% while CAB is at about 11%. • Since 2007, EBIT margins have been on an upward trend, aided by the absence of excise hikes as well as emphasis on efficiency by the brewers.
  10. 10. ROIC AND CROIC 0.0% 20.0% 40.0% 60.0% 80.0% FY2011 FY2012 FY2013 FY2014 FY2015 ROIC GAB CARLSBG
  11. 11. ROIC AND CROIC (CONT.) 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% FY2011 FY2012 FY2013 FY2014 FY2015 CROIC GAB CARLSBG In terms of efficiency in generating earnings and free cash flow, CARLSBG’s efficiency is higher than GAB. This is mainly due to CARLSBG invested capital is lower than GAB. Nevertheless, both of them are excellent.
  12. 12. LEVERAGE 0.00 x 0.10 x 0.20 x 0.30 x 0.40 x 0.50 x 0.60 x 0.70 x FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Debt/EBITDA GAB CARLSBG Leverage of GAB is higher than CARLSBG, but both are in very healthy level.
  13. 13. LIQUIDITY -60 -40 -20 0 20 40 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Cash Conversion Cycle GAB CARLSBG CARLSBG’s CCC is much lower than GAB, and, CARLSBG’s historical CCC were below 0. This means CARLSBG using other people money to run business.