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Semester ID: 10135 Group ----

Iman Sahafzadeh Kamran Ahangarani Elnaz Ataei Ahmad Muzaimi Dineshan

1101600764 1101600795 1091200742 1111600028 1111600023

September 2011

Astino Berhad
 Astino Berhad was incorporated in 2000 as a holding company of the Astino Group comprising Ooi Joo Kee & Brothers .  the company has established itself as one of the leading industrial enterprise in the field of wood product, and new building products with three major manufacturing plants located at strategic locations in Malaysia.  The successes of Astino Berhad were built on the company's commitment to strive for continuous improvement on quality product and excellence in services.

Weighted average cost of capital

 Investors use WACC as a tool to decide whether to invest. The 14.4% represents the minimum rate of return at which Astino produces value for its investors

Rm 2010 1.4145 11.75%

Rf 3.73%

Rs 15.08%

Rb 3.80%

WACC 14.40%

Astino
16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rm Rf Rs Rb WACC

Value of the Firm

 Astino is a leveraged company.  The company could use its debt to increase the value.

2006
7%

2007
5% 12%

2008
S 88% B

S 93% B 95%

S B

2009
11%

2010
6%

S 89% B 94%

S B

Capital Structure
 The market demand for products is steadily increasing throughout the year of our analysis. So they used their debt and make profit for the company.

Astino
0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 25.00 20.00 Debt ratio Debt to Equity Ratio 15.00 10.00 5.00 0.00 2006

Astino

TIE

2007

2008

2009

2010

Astino year Debt ratio Debt to Equity Ratio TIE 2006 0.23 0.39 9.5312 2007 0.38 0.72 11.2268 2008 0.28 0.52 11.1395 2009 0.13 0.17 6.0076 2010 0.32 0.51 19.1624

Dividend Policy

 Astino is well known for its well balanced financial policy. Its demand for product are increasing steadily in the market. The dividend paid is in the range of 3 sen to 5 sen throughout the year of our review. The lowest in the period which is 2008 and 2009 is due to the major shares buy back.
Astino
1 0.8 0.6 0.4 0.2 0 2006 2007 2008 2009 2010 Payout Ratio

dividend Earning per share Payout Ratio

2006 0.04 0.08 0.32

Astino 2007 0.05 0.13 0.29

2008 0.03 0.2 0.11

2009 0.03 0.07 0.83

2010 0.05 0.16 0.25

Net Working Capital

 There is no significant change in inventory period so company needs to work on inventory period to decrease its operating cycle if possible.  In 2010 payable period is decresed.

Inventory Period Year 2006 2007 2008 2009 2010 82.12 92.62 105.82 94.44 96.88

Payable Period

Receivable Period ASTINO

Operating Cycle

Cash Cycle

45.39 31.88 32.29 36.24 17.70

83.58 77.62 65.87 65.83 59.75

165.70 170.24 171.68 160.27 156.63

120.31 138.36 139.39 124.03 138.93

Net Working Capital

 The trend of receivable period is decreasing to collect the money from in short period.  The trend of payable period is decreasing same as receivable.

Astino
120.00 100.00 80.00 60.00 40.00 20.00 0.00 2006 2007 2008 2009 2010 Inventory Period Payable Period Receivable Period

Classic Berhad

 Classic Scenic Berhad (CSCENIC) was incorporated on 10 November 2003, and listed on the Second Board of the Bursa Malaysia Securities Berhad (Bursa Securities) on 4 November 2004. Subsequently on 6 June 2006, it was transferred to the Main Board (Main Board and Second Board merged and now known as Main Market) of the Bursa Securities. CSCENIC is an investment holding company, with subsidiaries principally engaged in the manufacturing of wooden picture frame mouldings, and wooden pallets.  The first mouldinags were made in 1994, and in recent years, we have emerged to be the largest wooden picture frame manufacturer and exporter in Malaysia, and one of the biggest operations in the region as well. Current manufacturing facility comprises of 6 factories spread over an area of 500,000 sq. ft., and a 450 strong workforce. There is still a long road ahead, the Group will continuously focus on strengthening its overall management in relation to a continuous improvement strategy in all aspects of the business and move on to greater heights on our road to success.

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Weighted average cost of capital

2010

0.5407

Rm 11.75%

Rf 3.73%
Classic

Rs 8.07%

Rb 0.00%

WACC 8.07%

14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rm Rf Rs Rb WACC Series1

Value of the Firm

11

2006
0% S B 100%

2009 2008
0% S B 100% 0% S

2009
0%

2010
0%

100 %

S B 100% 100%

S B

Capital Structure
 No debt  Unlevered

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Dividend Policy

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 The company has been steadily paying a dividend of 4 sen for the year 2006,2007 and 2008. Then there was a major increase in 2009 and 2010. it is only natural for Classic Scenic, which is purely financed by shareholders to pay more dividends in case of extra free cash flows, to make sure the shareholders remain pleased.
Classic
1.2 1 0.8 0.6 0.4 0.2 0 2006 2007 2008 2009 2010 Payout Ratio

Classic 2006 dividend Earning per share Payout Ratio 0.04 0.09 0.48 2007 0.04 0.09 0.48 2008 0.04 0.07 0.46 2009 0.07 0.07 1.02 2010 0.09 0.1 0.91

Net Working Capital

 There is increase in receivable period and inventory period because of that we can see a increase in cash cycle.

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Inventory Period Year 2006 2007 2008 2009 2010 190.40 237.80 306.70 342.03 227.67

Payable Period

Receivable Period Classic Scenic

Operating Cycle

Cash Cycle

32.45 33.37 40.70 38.99 33.06

52.08 58.98 64.73 54.64 46.32

242.48 296.78 371.43 396.67 273.99

210.04 263.41 330.73 357.68 240.93

Net Working Capital

Decrease in cash cycle in 2010.

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Classic
400.00 350.00 300.00 250.00 200.00 150.00 100.00 50.00 0.00 2006 2007 2008 2009 2010 Inventory Period Payable Period Receivable Period

Dominant Berhad
 Dominant Enterprise Berhad is a public listed company on the Main Board of Bursa Malaysia Securities Berhad.  Today, the company is proud to have eleven(11) subsidiaries under its wings that are, among others, involved in the manufacturing of environmentally friendly engineered wood moldings, laminated wood panel products as well as the distribution and export of a wide range of wood products worldwide

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Weighted average cost of capital

 A high WACC indicates that a company is spending a comparatively large amount of Money in order to raise Capital, which means that the company may be risky. On the other hand, a low WACC indicates that the company acquires capital cheaply. Since our WACC is 8.26% is reasonable because it is almost in the middle ,it is not too risky and spending a large amount of Money for raising Capital.
2010 Rm 0.8409 11.75% Rf 3.73% Rs 10.48% Rb 5.15% WACC 8.26%

Dominant
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rm Rf Rs Rb WACC 2010

Value of the Firm

 Dominant is a leveraged company .  Percentages of debt and equity are constant in recent years.

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2007
41% 59% S B

2007
37% 63% S B 46%

2008
S 54% B

2009

2010

46% 54%

S B

46% 54%

S B

Capital structure
 It is obviously clear that our debt to equity ratio is decreasing In whole period.  The name of this ratio says it all; this ratio shows how much your business is in debt, making it an excellent way to check your businesss long-term solvency  It is obviously clear that our debt to equity ratio is decreasing  It is mean that company is more able to pay its loan and other debt and change its value to more equity, which is very good sign for us.

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Dominant
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 Debt ratio Debt to Equity Ratio 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 2006

Dominant

TIE

2007

2008

2009

2010

Dominant year Debt ratio Debt to Equity Ratio TIE 2006

0.29 0.53

2007
0.3 0.56

2008
0.35 0.66

2009
0.24 0.37

2010
0.26 0.45

6.80

8.16

6.57

7.53

13.86

Dividend Policy
 The dividend for the year 2009 was lower compared to the rest because the companys revenue was 1/3 from the revenues in the previous years. So that is why the directors decided to declare only 1.5 sen dividend per share.
Dominant
0.6 0.5 0.4 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 Payout Ratio

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Dominant 2006 dividend Earning per share Payout Ratio 0.04 0.05 0.55 2007 0.05 0.11 0.27 2008 0.03 0.1 0.3 2009 0.01 0.09 0.16 2010 0.04 0.11 0.26

Net Working Capital

There is no significant change in payable and receivable period , except in the last year

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Inventory Period Year 2006 2007 2008 2009 2010 68.95 79.91 83.43 82.55 91.86

Payable Period

Receivable Period Dominant

Operating Cycle

Cash Cycle

35.61 37.51 32.32 27.78 32.87

73.50 71.27 72.77 74.13 70.39

142.45 151.18 156.19 156.69 162.25

106.84 113.67 123.88 128.90 129.38

Net Working Capital

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 There is no significant change in inventory period, except in the last year the inventory period in increased.  they need to work on inventory period.
Dominant
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 0.00 2006 2007 2008 2009 2010 Inventory Period Payable Period Receivable Period

HeveBord Berhad
 Company incoopared 16 Aug 1997  23 May 1999 listed in the first board  Company objectives:  STRIVE TO MAXIMIZE THE USAGE OF RUBBERWOOD RESIDUES  INCREASE CAPACITY FOR PARTICLEBOARD AND VALUE ADDED FINISHED PRODUCTS  CREATE MORE HIGH SKILL EMPLOYMENT OPPORTUNITIES FOR MALAYSIANS

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Weighted average cost of capital

2010

Rm Rf Rs Rb WACC 1.1312 11.63% 3.73% 12.67% 6.80% 7.25%

HeveaBoard
14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rm Rf Rs Rb WACC 2010

Value of the Firm

 At 2006, Shares 45%, borrowing 55%  In 2007 there was an increase, the company was growing, lot of project to invest in, a lot of capital was needed.  2008, bing increase in borrowing, company was growing rapidly.  2009, start paying off debt, borrowing reduced to 77%  2010, borrowings reduced even more, company stable.
2006 2007
33% 67% S B 94%

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2008
6% S B

45% 55%

S B

2009
23% 77% S B 72%

2010
28% S B

Capital Structure

26

 Debt ratio, 2009 and 2010 was a bit riskier in terms of leverage, the ability to payout the debt. Compared to previous years.  Debt equity, got lower over the years, less aggressive in financing their operations. In 2009, they have increased their shares, so they are leaning towards inside financing as the directors of the company feel that it is not worth the risk.  TIE, 2009 onwards there is a steady increase, as the company has issued shares and they have cash inside the company, so theyre able to pay off their debts.

HeveaBord
2 1.5 1 0.5 0 2006 2007 2008 2009 2010 Debt ratio Debt to Equity Ratio

HeveaBord
4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 2006 2007 2008 2009 2010

TIE

HeveaBoard year Debt ratio Debt to Equity Ratio TIE 2006

0.51 1.8

2007
0.51 1.75

2008
0.5 1.55

2009
0.47 1.25

2010
0.42 0.99

3.19

1.01

0.99

2.58

3.42

Dividend Policy

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 The reason for the company not to pay out any dividends in the year 2009 and 2010 to the shareholders is because the company is growing, they are preparing to invest in other big projects, hence the directors decided not to pay any dividends to their shareholders.
HeveaBord
0.5 0.4 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 Payout Ratio

HeveaBoard 2006 dividend Earning per share Payout Ratio 0.05 0.1 0.38 2007 0.03 0.09 0.4 2008 0.01 2009 0.23 2010 0.28 -

Working Capital

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The company can manage their inventory, acc receivable, and acc payable rather well. Confident can pay back their customers. Cash cycle 2007, lowest. Starting from 2008 there was an increase. Both the payable and receivable period getting lower through the years.

Inventory Period Year 2006 2007 2008 2009 2010 87.94 61.89 56.10 72.53 64.55

Payable Period 116.60 100.45 80.03 77.69 56.49

Receivable Period HeveaBoard 68.18 50.85 38.82 39.87 47.20

Operating Cycle 156.13 112.73 94.92 112.40 111.74

Cash Cycle

39.53 12.29 14.89 34.71 55.25

Working Capital
HeveaBord
140.00

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120.00

100.00

80.00 Inventory Period Payable Period 60.00 Receivable Period

40.00

20.00

0.00 2006 2007 2008 2009 2010

Minho Berhad

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The activities in which the Group is currently involved are concerning timber and its related activities, which are logging and manufacturing. This means, its all about timber and related wood-based industries. To ensure that the Group is committed to responsible stewardship of the environment throughout all operations, the following environment policies have been adopted.

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Weighted average cost of capital

Minho

Rm 2010

Rf

Rs

Rb

WACC

1.4327 11.63% 3.73% 15.05% 6.30% 11.47%

Minho
16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Rm Rf Rs Rb WACC 2010

Value of the Firm

 Number of Shares remains  Only borrowings figure change  Less dependency on debt over the years

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2006
49% 51% S B 49%

2007
51% S B

2008
37% 63% S B

2009
42% 58% S B

2010
35% 65% S B

Capital Structure

33

 Debt ratio never exceed of total assets  Debt ratio and Debt to Equity Downward sloping Trend
Minho
0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2006 2007 2008 2009 2010 Debt ratio Debt to Equity Ratio 5.00 4.00 3.00 2.00 1.00 0.00 2006 2007 2008 2009 2010 TIE

Minho

Minho year Debt ratio Debt to Equity Ratio TIE 2006

0.22 0.58

2007
0.2 0.49

2008
0.16 0.34

2009
0.14 0.26

2010
0.12 0.19

4.17

4.20

2.36

1.99

2.23

Dividend Policy
 There were no dividends declared from the year 2006 till the year 2010. From our analysis, we find that Minho is doing well; hence they did not have to pay their shareholders dividend. The shareholders can see the share prices increasing each and every year. This gives them confidence to remain and keep investing in the company.

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Minho 2006 dividend Earning per share Payout Ratio 0.14 2007 0.12 2008 0.12 2009 0.02 2010 -0.01 -

Net Working Capital

 No obvious trend  Receivable period always lesser than payable period.  Takes long time to sell their products  Suggestion Improve Inventory Period

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Inventory Period Year 2006 2007 2008 2009 2010 120.43 156.40 197.43 211.65 171.73

Payable Period

Receivable Period Minho

Operating Cycle

Cash Cycle

75.33 109.96 135.36 160.56 123.31

70.74 73.47 81.85 107.27 91.52

191.16 229.88 279.28 318.92 263.25

115.83 119.92 143.93 158.36 139.94

Net Working Capital

 Inventory period is the highest, followed by Payable period and Receivable Period

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Minho
250.00 200.00

150.00 Inventory Period 100.00 Payable Period Receivable Period 50.00

0.00 2006 2007 2008 2009 2010