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Date of Analysis:
Company Name:
Stock Code (Bursa):
Stock Code (Bloomberg):
Stock Code (Reuters):
Price as of Analysis:
Stock Grade
25-May-11
Board:
FBMKLCI:
Sector:
AIRASIA BERHAD
AIRASIA
AIRA:MK
AIRA.KL
3.06
Industrial PE:
Rolling EPS:
Main
N
TRADING SERVICES
14.44
0.39
Fast Growers
Financial Statements:
Although debt as a percent of total capital decreased at AirAsia Bhd over the last fiscal year to 68.91%, it is still
in-line with the Airlines industry's norm. Additionally, there are enough liquid assets to satisfy current
obligations. Accounts Receivable are among the industry's worst with 7.94 days worth of sales outstanding.
This implies that revenues are not being collected in an efficient manner. Last, AirAsia Bhd is among the least
efficient in its industry at managing inventories, with 3.32 days of its Cost of Goods Sold tied up in Inventories.
4 - Conservative Debt
4.1. Long term debt < 4 times Net Profit
4.2. Debt/Equity Ratio < 1
4.3. Current Ratio > 1
2006
862,880
88,414
2007
2,188,800
851,400
2008
2,634,688
-496,563
2009
3,132,901
506,267
0.523076923 0.784615385
1.569230769
2010
3,948,095
1,061,411
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
TOTAL REVENUES
1,500,000
NET INCOME
1,000,000
500,000
0
2006
-500,000
2007
2008
2009
2010
-1,000,000
1.2. Cash Flows -> Net Cash from Operations increasing in the past 4 years.
RM ('000)
NET CASH FROM
OPERATIONS
2006
835,886
2007
511,500
2008
-416,061
2009
783,619
2010
1,619,163
2,000,000
1,500,000
1,000,000
500,000
0
2006
-500,000
-1,000,000
2007
2008
2009
2010
1.3. Growing/consistent revenue in EPS, revenue and net profit in the last 4 quarters.
1400000
1200000
1186467
1000000
800000
878041
940656
1047941
987558
Turnover Trend
600000
400000
200000
0
3/1/2010
6/1/2010
9/1/2010
12/1/2010
3/1/2011
EPS Trend
15
10
5
11.9
11.5
9.1
7.2
6.2
0
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Quarter
1.4. The current quarter's EPS is up more than 15% from the same quarter the year before.
EPS Growth:
-32%
NO
Very Strong
Very High
Very Strong
2.2. Gross Profit Margin (> 40%) & Net Profit Margin (> 10%) high & consistent
Gross Profit:
1,835,400
Sales Revenue:
1,061,411
Minority Interest:
46%
ROE
35
30
25
20
15
10
5
0
2004
2005
2006
2007
2008
2009
2010
3,948,095
0
27%
35.38
4 - Conservative Debt
4.1. Long term debt < 4 times Net Profit
6,637,400
Debt/Equity Ratio:
2.64
1.56
6.25
70%
43%
13.20%
EBIT (1-Tax
rate%)
Total Equity
Short Term Debt
2007
562,125
2008
-330,668
2009
912,754
2010
1,066,961
2,099,000
49,600
1,605,000
47,000
2,621,000
0
3,641,000
0
3,093,300
1,402,762
14.64%
4,968,300
153,762
-5.11%
6,036,400
746,312
11.54%
6,637,400
1,753,301
12.52%
20.00%
15.00%
10.00%
5.00%
ROIC
0.00%
2007
-5.00%
-10.00%
2008
2009
2010
Sales Revenue
Sales Growth YOY
Inventory
Accounts Receivable
Accounts Payable
Working Capital
Working Capital Growth YOY
Inventory Days
Days Receivable
Days Payable
Cash Conversion Cycle
17,600
1,519,806
1,203,929
333,477
2.93
253.44
200.76
55.61
2008
2,634,688
20%
20,700
1,422,706
1,220,494
222,912
-33.16%
2.87
0.52
169.08
-165.69
2009
3,132,901
19%
20,900
1,453,796
1,159,652
315,044
41.33%
2.43
0.78
135.11
-131.89
2010
3,948,095
26%
17,600
1,103,310
1,287,992
-167,082
-153.03%
1.63
1.57
119.07
-115.88
100%
50%
0%
2007
2008
2009
-50%
Working Capital Growth YOY
-100%
-150%
-200%
2007
2008
2009
-100.00
-150.00
-200.00
-6%
2010
Estimated IV:
Discount from IV:
From
From
2.5 To
-22.4% To
4.8
36.3%
10.1. Stock price breaks out of consolidation/dip on an uptrend and above 20 and 50 moving averages on monthly char