Will you buy PROTON-CB instead of proton?????
Let's look at it:
New Warrants Expiration Type Ex Price Ratio
PROTON-CB 4/10/2010 Call MYR 4.4000 5 : 1
Current price: 0.105
Premium or Discout: 0.105*5 + 4.40 = 4.925
Mother now: 3.75
Will you buy a thing that COST 4.925 but Actual price is only 3.75????
It is damn expensive. Buy mother share proton better.
Let's look at it:
New Warrants Expiration Type Ex Price Ratio
PROTON-CB 4/10/2010 Call MYR 4.4000 5 : 1
Current price: 0.105
Premium or Discout: 0.105*5 + 4.40 = 4.925
Mother now: 3.75
Will you buy a thing that COST 4.925 but Actual price is only 3.75????
It is damn expensive. Buy mother share proton better.
While Proton’s revenue was in line with our and consensus estimates, its 1HFY9 bottomline of RM136.6m was a pleasant surprise, making up 74% of our full-year forecast. Gross profit margin came in at 3%, a quantum we have not seen for the past 3 to 4 years, as EBIT margin was also the highest achieved since Q4FY06. The boost in operating margins was largely attributed to the vast improvement in operating efficiency in its distribution line and manufacturing overheads, which brought down average cost per unit of vehicle by 12%. With management seeing sustainable margins going forward and the higher exports, we are revising upwards our bottomline earnings for FY10-12 by 46%-62%. This drives up our TP to RM5.90 based on a blended P/NTA of 0.8x and 10x PE on FY10EPS, with our BUY call maintained. No dividends were announced, as expected.
Better volume, better numbers. Proton’s revenue improved by 13.6% q-o-q (y-o-y: 14%, YTD: 11%) on the back of the better vehicle numbers, which grew by 14% q-o-q and 2.8% y-o-y, boosted by resilient sales from the Proton Saga following the introduction of its facelift models, in addition to the Persona and its new MPV variant, Exora. Although the top-line and volumes sold domestically were pretty much in line, the annualized export volume surpassed our estimates by 10% on better showing from the Saga and Exora models in the Asean region.
Margin expansion. Proton’s 1H net income, which surged 50% q-o-q (y-o-y: 87%, YTD: 43%), accounted for 74% of our full-year forecast. The highlight for the quarter was the vast improvement in operating efficiency on improved productivity in sales and distribution, which brought down Proton’s average expenses per unit from RM905 per car to RM400, which was lower by more than 55%. Similarly, manufacturing overheads and general and administrative expenses were down by 5%-7% per unit of vehicle produced on average.
For the quarter, Proton registered its higher gross profit margin of 3%, which was probably last seen 5 years ago when Proton was posting RM442m in core profits. Likewise, the EBIT margins posted this quarter were last witnessed in Q4FY06.
Solid balance sheet. Coupled with the boost in revenue and cash conversion cycles (ie better receivables, payables and inventory), Proton’s net cash improved from RM879m in the previous quarter to RM1.27bn, thus fortifying its balance sheet. This puts to rest previous concerns over its cash burning pile.
