Bloomberg - APM:MK
Yahoo - 5015 .kl
Webpage - http://www.apm.com.my/
Sector : Industrial Products & Services
Yahoo - 5015 .kl
Webpage - http://www.apm.com.my/
Sector : Industrial Products & Services
Sub Sector : Auto Parts
Focus : Metal Parts & Heat Exchange
Company Profile
APM is a Malaysian Automotive Parts Manufacturer that has expanded to become a major regional supplier. APM has business in Malaysia, Thailand, Indonesia, Vietnam, Australia, United States and Netherlands.
Focus : Metal Parts & Heat Exchange
Company Profile
APM is a Malaysian Automotive Parts Manufacturer that has expanded to become a major regional supplier. APM has business in Malaysia, Thailand, Indonesia, Vietnam, Australia, United States and Netherlands.
1) Operating Segment
APM consists of 7 main
reporting segments as follow:
Segment
|
% 2018 Revenue
|
Asset Turnover
|
Return on
Asset (%)
|
% 2018 CAPEX
|
Suspension,
Malaysia
|
5.58
|
47.87
|
5.72
|
7.65
|
Interior
and Plastic, Malaysia
|
55.93
|
130.77
|
10.97
|
33.62
|
Electrical
Heat Exchanger, Malaysia
|
8.43
|
104.09
|
6.64
|
3.22
|
Marketing,
Malaysia
|
16.83
|
230.72
|
10.67
|
0.93
|
Indonesia
|
3.18
|
19.33
|
-5.30
|
13.45
|
All
Other Segment
|
7.63
|
48.96
|
-0.97
|
31.58
|
Non
Reporting Segment
|
2.42
|
2.69
|
0.17
|
9.54
|
Suspension Division,
Malaysia
Business in products
such as leaf springs, parabolic springs, coil springs, shock absorbers, gas
springs, U-bolts and metal parts.
Interior & Plastic
Division, Malaysia
Business in products
such as plastics parts, interiors, seatings for motor vehicles, buses,
auditoriums, cinemas, rails and light rails system.
Electrical & Heat
Exchange Division, Malaysia
Business in products
such as air-conditioning systems, radiators, starter motors, alternators, wiper
system, distributors, In Vehicle Infotainment (“IVT”) systems, and other
electrical parts; and development of Internet of Things (“IOT”) telematics
problem.
Marketing Division,
Malaysia
Trading and
distribution of automotive components/parts manufactured by the Group for the
replacement and export market.
Indonesia Operations
Business in Indonesia.
All Other Segments
Business in Thailand,
Vietnam, Myanmar, Australia, India, United States of America and Netherlands.
Non-reportable Segments
Operation related to
the rental of investment properties in Malaysia; casting machining and assembly
of aluminium parts and components distribution of motor vehicles, provision of
management services for companies within the Group, and the provision of
automotive research and development services.
From 2018 annual
report, APM oversea operation is making loss. APM largest segment is the
Interior and Plastics division where 55.93 % of the revenue for 2018 is from
this segment. The segment also had the largest return of asset which is 10.97%
and largest CAPEX which is 33.62 % of 2018 total CAPEX.
Besides that APM also
had place sustainable amount of CAPEX 31.58 % of 2018 CAPEX into all other
segment.
PROS:
|
è APM place largest amount of CAPEX
(33.62% of 2018 CAPEX) into Interior and Plastics segment which yield the
best return on assets.
|
CONS:
|
è
Oversea operation is making loss
è
31.58% of 2018 CAPEX go into all other
segment which is making loss in 2018.
|
Financial
Statement
APM has RM 18,392,000
of intangible asset as of 2018 annual report. Besides that APM deferred tax
assets had increase from RM 12,113,000 in 2017 to RM 16,799,000 in 2018. Deferred
tax asset is overpaying tax to the government.
APM had increase the
trade and other receivable from RM 232,726000 (2017) to RM 250,889,000 (2018)
while reducing the account receivable past due from RM 25,534,000 (2017) to RM
22,582,000 (2018).
APM deposit, prepayment,
cash and equivalent had decrease from RM 266,580,000 (2017) to RM 252,765,000
(2018).
PROS:
|
è Increase trade and other receivable in 2018
while reducing the account receivable past due.
|
CONS:
|
è
APM
having RM 18,932,000 of intangible asset
è
Increase of deffered tax asset by 38.69
%.
è
5.18% decrease in deposit, prepayment,
cash and equivalent.
|
APM loans and
borrowings had increase from RM 68,826,000 (2017) to RM 81,495,000 (2018),
18.41 % increase.
CONS:
|
è
APM loans and borrowings had increase by
18,41 %
|
Financial
Ratio
Description
|
2018
|
2017
|
Different
|
Gross
Profit Margin
|
0.15
|
0.16
|
-0.01
|
Net
Profit Margin
|
0.05
|
0.04
|
+0.01
|
Interest
Coverage Ratio
|
18.99
|
15.67
|
+3.32
|
Effective
Tax
|
0.22
|
0.30
|
+0.08
|
Warrant
No Warrant issue
Dividend
and Bonus Issued for the past five year
APM had constant
dividend for the past five year from 2014 – 2018 with the average of RM 0.172
with the dividend yield of 8 % base on APM stock price of RM 2.15 on 17/12/2019
PROS:
|
è APM had dividend yield of 8 % for
the past five year which is higher than fixed deposit of 3.00%
|
Market
Research
Affin Hwang Capital (25
November 2019)
Price Target : RM 1.95
·
Net profit fell by 71% qoq damped by
losses from its Indonesia associate company
AmInvestment Bank (25 November
2019)
Price Target : RM 1.68
·
Expecting Indonesia operation continue
to dragging the group’s earning
·
Lower production and higher operating
expenses
Estimated
Price
IVKLS Price : RM 2.22
Peers
1) AFUJIYA (5198)
2) CAP (5229)
3) EPMB (7773)
4) ESAFE (0190)
5) GOODWAY (7192)
6) GPA (7096)
7) JETSON (9083)
8) MCHELDG (7004)
9) PECCA (5271)
10) SAPIND (7811)
11) SMISCOR (7132)
12) WATTA (7226)
