Viz Branz

(12-07-2011, 11:38 AM)freedom Wrote: some speculation thought:

I guess the seller(s) has(have) informed the company about their intent to sell so that the company could buy back the similar amount of shares. Just before the selldown, there was a sudden increase of 350 lots buy in queue. It happened last Thursday/Friday and as well as Monday. And today there is similar buy queue, so would someone sell 350 lots later today?

Another speculation thought would be why Ben Chng did not buy but the company bought back?

There is no need for the seller to do that. They can do a off market transaction with Viz Branz and save on transaction fees.
From the annual report, it seems that Ben Chng had pledged quite significant amount of shares with the banks? (Direct interest 138 millions share but only 31.6 millions is under his CDP)

another 0.5 cents interim dividend just declared. book closure date 17/18 Aug and will be paid on 29th Aug. a bit odd time to declare an interim dividend now.

Today's (1Aug11) announcement on a 'surprise' $0.005/share 3rd Interim div. for FY11 (ended 30Jun11).....
http://info.sgx.com/webcoranncatth.nsf/V...F00236FA7/$file/BooksClosureDate_0811.pdf?openelement
Frankly, I really don't mind at all such positive surprises! - the more the merrier, I hope, as long as the underlying business remains healthy and continues to generate good profits and FCF. I guess Viz Branz's management is giving shareholders a present to celebrate the coming National Day!

Assuming Viz Branz keeps the usual Final div. (last FY10: $0.0075/share; paid on 30Nov10) at $0.0075/share, there would be altogether 4 dividends for FY11 as well, amounting to a total payout of $0.025/share. Great!

I suppose when the owner manager owns a huge chunk of the company's shares, this would usually provide the driving motivation towards responsible management. Further to this point, when the shareholding is large, hopefully the management is inclined towards distributing the company's profits since they will be the main beneficiaries anyway. Incidentally, minority shareholders get to share the spoils as well!

Happily as it is, the management has so far being quite willing to distribute its profits to shareholders. When the management's and minority shareholders' interests are well aligned, this indeed bodes well for both parties.

(01-08-2011, 05:35 PM)freedom Wrote: another 0.5 cents interim dividend just declared. book closure date 17/18 Aug and will be paid on 29th Aug. a bit odd time to declare an interim dividend now.

Any speculative thought on this odd/extra interim dividend?

tough operating environment due to higher raw material price, lower gross margin, lower profit. another 0.5 cent dividend declared, full year dividend 2.25 cents, earning 3.27 cents, payout ratio nearly 70%. both inventory and receivable came down a bit and cash and cash equivalents up a bit

Interestingly the revenue for FY2010 has shrunk from $159.766m as published in AR2010 to $152.747m in the latest sgx filing.

Significantly it means the gross profit margin has plummeted about 7% from 39% to 32% if the revenue for FY2010 remains as $159.766m

Based on the latest sgx filing the drop in gross profit margin is a lower 4%

Did I miss anything along the way ?

There are some revenue adjustments to FY2010 result in FY2010 result. The revenue and selling & distribution expense is higher accordingly. the operating income and profit are still the same.

maybe the company change the way of revenue recognition?

Just checked my bank account and noted a very nice credit from Viz Branz's $0.005/share 3rd Interim dividend for FY11 (ended 30Jun11). Feeling very happy indeed that the cash return from the regular dividends alone - amounting to a 8.7% yield, based on the total $0.0225/share payout from the 4 dividends for FY11, on the last done share price of $0.26 - is providing me a steady inflow of funds which I can deploy for other new investments. I look forward to the coming $0.005/share Final dividend for FY11.

Apart from looking into Viz Branz's profits, and worry about the short-term impacts from rising raw material prices and forex rates movement especially a strengthening SGD vs. CNY and the regional currencies, I believe it is even more important to look into the Segmental Results provided in Note 12 of the latest FY11 full-year results.....
http://info.sgx.com/webcoranncatth.nsf/V...B000CFC8A/$file/VB_FYResults.pdf?openelement

From the Business Segments analysis, we know total sales of the all-important Instant Beverages segment was +8% yoy and has continued to grow steadily, and total sales of the still small Snack Foods & Others segment was +34% yoy!. From the Geographical Segments analysis, we know group revenue from the all-important PRC market was +11% yoy, and group revenue from the South-East Asia & Indochina market segment was +6% yoy. As the numbers and % changes are measured in SGD, I suppose we can just take comfort that the actual increases as measured in the respective local trading currencies (i.e. RMB for PRC, MYR for Malaysia, etc.) should be higher and by a few more %. I believe this is an important point to note, as ultimately the value of Viz Branz as an essentially branded FMCG business must be based on steady growth in business volume and revenue in the respective geographiocal markets the company has engaged for the longer term.

(31-08-2011, 03:08 PM)freedom Wrote: There are some revenue adjustments to FY2010 result in FY2010 result. The revenue and selling & distribution expense is higher accordingly. the operating income and profit are still the same.

maybe the company change the way of revenue recognition?

Oh really? Can the company, or any company for that matter, change the way of revenue of revenue recognition?

The revenue in the annual report for FY2010 is an audited figure right?