Income Statement

For the Fiscal Period Ending 12 months

Dec-31-2021 Vertical
Currency MYR Analysis
Revenue 5,733.8 100%
Total Revenue 5,733.8 100%
Cost Of Goods Sold 3,775.6 66%
Gross Profit 1,958.2 34%
Selling General & Admin Exp. 1,092.2 19%
Other Operating Expense/(Income) 80.4 1%
Other Operating Exp., Total 1,172.1 20%
Operating Income 786.1 14%
Net Interest Exp. (9.4) 0%
EBT Incl. Unusual Items 751.8 13%
Income Tax Expense 182.0 3%
Net Income to Company 569.8 10%

Balance Sheet as of:

Dec-31-2021 Vertical
Currency MYR Analysis
ASSETS
Cash And Equivalents 6.9 0%
Total Receivables 367.1 12%
Inventory 745.0 25%
Other Current Assets 17.4 1%
Total Current Assets 1,139.9 38%

Gross Property, Plant & Equipment 3,758.8 126%

Accumulated Depreciation (2,016.3) -68%
Net Property, Plant & Equipment 1,742.5 58%

Long-term Investments 5.9 0%

Goodwill 61.0 2%
Loans Receivable Long-Term 9.2 0%
Deferred Tax Assets, LT 23.9 1%
Deferred Charges, LT 2.3 0%
Total Assets 2,984.8 100%

LIABILITIES
Accounts Payable 1,353.1 45%
Accrued Exp. 106.0 4%
Short-term Borrowings 245.7 8%
Curr. Port. of Leases 27.0 1%
Curr. Income Taxes Payable 29.7 1%
Other Current Liabilities 167.0 6%
Total Current Liabilities 1,928.4 65%
Long-Term Debt 100.0 3%
Long-Term Leases 141.4 5%
Pension & Other Post-Retire. Benefit 89.9 3%
Def. Tax Liability, Non-Curr. 142.5 5%
Total Liabilities 2,402.1 80%
Common Stock 267.5 9%
Retained Earnings 315.9 11%
Total Equity 582.7 20%
Total Liabilities And Equity 2,984.8 100%
Sr No Parameter Input Justification
Income Statement & Balance Sheet
1 Sales Growth 5.94% Last Year's growth rate
2 Expenses Percentage of sales for 2021 using vertical statement analysis
3 Tax Rate 24% Average Corporate Tax Rate
4 Asset Growth 5.94% Sales growth rate
WACC Related
4 Equity Value 31329.2 Current Market Capitalization
5 Debt Value 514.01 Book Value
6 Cost of Debt 6.60% Interest Expense / BV of Debt
7 Cost of Equity 6.45% CAPM as given in Alphspread
8 WACC 6.43% WACC formula
9 Terminal Growth Rate 5.00% Long Term Economic Growth Rate
ment analysis
 Projected Projected Projected Projected Projected
Income Statement Base Year Year 1 Year 2 Year 3 Year 4 Year 5
For the Fiscal Period Ending Dec-31- Dec-31- Dec-31- Dec-31- Dec-31-
Dec-31-2021 2022 2023 2024 2025 2026
Currency MYR MYR MYR MYR MYR MYR
Revenue 5,733.8 6,074.4 6,435.2 6,817.5 7,222.4 7,651.4
Total Revenue 5,733.8 6,074.4 6,435.2 6,817.5 7,222.4 7,651.4
Cost Of Goods Sold 3,775.6 3,999.9 4,237.4 4,489.1 4,755.8 5,038.3
Gross Profit 1,958.2 2,074.6 2,197.8 2,328.3 2,466.6 2,613.2
Selling General & Admin Exp. 1,092.2 1,157.1 1,225.8 1,298.6 1,375.8 1,457.5
Other Operating Expense/(In 80.4 85.2 90.3 95.6 101.3 107.3
Other Operating Exp., Total 1,172.1 1,241.7 1,315.5 1,393.6 1,476.4 1,564.1
Operating Income 786.1 832.8 882.3 934.7 990.2 1,049.0
Net Interest Exp. (9.4) (10.0) (10.5) (11.2) (11.8) (12.5)
EBT Incl. Unusual Items 751.8 796.5 843.8 893.9 947.0 1,003.3
Income Tax Expense 182.0 191.2 202.5 214.5 227.3 240.8
Net Income to Company 569.8 605.3 641.3 679.4 719.7 762.5

Balance Sheet as of: Dec-31- Dec-31- Dec-31- Dec-31- Dec-31-

Dec-31-2021 2022 2023 2024 2025 2026
Currency MYR MYR MYR MYR MYR MYR
ASSETS
Cash And Equivalents 6.9 7.3 7.7 8.2 8.7 9.2
Total Receivables 367.1 388.9 412.0 436.5 462.4 489.9
Inventory 745.0 789.2 836.1 885.8 938.4 994.1
Other Current Assets 17.4 18.4 19.5 20.7 21.9 23.2
Total Current Assets 1,139.9 1,207.7 1,279.4 1,355.4 1,435.9 1,521.2

Gross Property, Plant & Equi 3,758.8 3,982.1 4,218.6 4,469.2 4,734.7 5,015.9
Accumulated Depreciation (2,016.3) -2,136.1 -2,263.0 -2,397.4 -2,539.8 -2,690.6
Net Property, Plant & Equi 1,742.5 1,846.0 1,955.7 2,071.8 2,194.9 2,325.3

Long-term Investments 5.9 6.3 6.7 7.1 7.5 7.9

Goodwill 61.0 64.6 68.5 72.6 76.9 81.4
Loans Receivable Long-Term 9.2 9.8 10.4 11.0 11.6 12.3
Deferred Tax Assets, LT 23.9 25.3 26.8 28.4 30.1 31.9
Deferred Charges, LT 2.3 2.5 2.6 2.8 2.9 3.1
Total Assets 2,984.8 3,162.1 3,350.0 3,548.9 3,759.8 3,983.1

LIABILITIES
Accounts Payable 1,353.1 1,433.4 1,518.6 1,608.8 1,704.4 1,805.6
Accrued Exp. 106.0 112.3 119.0 126.1 133.5 141.5
Short-term Borrowings 245.7 260.3 275.7 292.1 309.5 327.9
Curr. Port. of Leases 27.0 28.6 30.3 32.1 34.0 36.0
Curr. Income Taxes Payable 29.7 31.5 33.3 35.3 37.4 39.6
Other Current Liabilities 167.0 176.9 187.4 198.5 210.3 222.8
 Total Current Liabilities 1,928.4 2,043.0 2,164.3 2,292.9 2,429.1 2,573.4

Long-Term Debt 100.0 105.9 112.2 118.9 126.0 133.4

Long-Term Leases 141.4 149.7 158.6 168.1 178.0 188.6
Pension & Other Post-Retire. 89.9 95.2 100.9 106.8 113.2 119.9
Def. Tax Liability, Non-Curr. 142.5 151.0 159.9 169.4 179.5 190.2
Total Liabilities 2,402.1 2,544.8 2,696.0 2,856.1 3,025.8 3,205.5
Common Stock 267.5 283.4 300.2 318.1 336.9 357.0
Retained Earnings 315.9 334.7 354.6 375.7 398.0 421.6
Total Equity 582.7 617.3 654.0 692.8 734.0 777.6
Total Liabilities And Equity 2,984.8 3,162.1 3,350.0 3,548.9 3,759.8 3,983.1
Projected Projected
Year 6 Year 7
Dec-31- Dec-31-
2027 2028
MYR MYR
8,105.9 8,587.4
8,105.9 8,587.4
5,337.6 5,654.6
2,768.4 2,932.8
1,544.1 1,635.8
113.7 120.4
1,657.0 1,755.5
1,111.3 1,177.3
(13.3) (14.1)
1,062.8 1,126.0
255.1 270.2
807.8 855.7

Dec-31- Dec-31-
2027 2028
MYR MYR

9.8 10.3
519.0 549.8
1,053.2 1,115.8
24.6 26.0
1,611.5 1,707.3

5,313.9 5,629.5
-2,850.5 -3,019.8
2,463.4 2,609.7

8.4 8.9
86.3 91.4
13.0 13.8
33.8 35.8
3.3 3.5
4,219.7 4,470.3

1,912.8 2,026.5
149.9 158.8
347.3 368.0
38.1 40.4
42.0 44.5
236.1 250.1
2,726.2 2,888.2

141.4 149.8
199.8 211.7
127.0 134.6
201.4 213.4
3,395.9 3,597.6
378.2 400.6
446.6 473.2
823.8 872.7
4,219.7 4,470.3
 1 2 3 4 5
Free Cash Flow FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Sales 6074.4 6435.2 6817.5 7222.4 7651.4
`+ EBIT 832.8 882.3 934.7 990.2 1049.0
`- Tax 191.2 202.5 214.5 227.3 240.8
` + D&A + Impairment 119.8 126.9 134.4 142.4 150.9
`- Capex 223.3 236.5 250.6 265.5 281.2
`- Change in NWC -46.8 -49.6 -52.6 -55.7 -59.0
Free Cash Flow 585.0 619.7 656.5 695.5 736.9
Terminal Value
Present Value Factor 0.9 0.9 0.8 0.8 0.7
Present Value of Cash Flows 549.7 547.1 544.6 542.1 539.7
Entreprise Value = 43146.2

Less - Debt O/s 514.0

Add - Cash Balance 6.9
Add - Financial Investment 0.0
Equity Value 42639.0

Number of Shares O/s 234.5

Intrinsic Value per Share 181.830

Market Price (20.05.21) 133.600

Upside 36.10%
upside Potential +15% 209.10
downside potential -15% 154.56

Conclusion - Buy. Stock is fairly prices with some undervaluation. Overall, the Company is fundamentally strong and tec
 6 7
FY 2026 FY 2027
8105.9 8587.4
1111.3 1177.3
255.1 270.2 -1
159.8 169.3
297.9 315.6
-62.5 -66.2
780.6 827.0
60857.4
0.7 0.6
537.2 39885.7

damentally strong and technical charts are also favourable (discussed in report)