NESTLE (4707)

NESTLE (4707)	2015	2014	2013	2012	2011
Financial Highlights	2015	2014	2013	2012	2011
	(RM '000)	(RM '000)	(RM '000)	(RM '000)	(RM '000)
Turnover	4,837,957	4,808,933	4,787,925	4,556,423	4,246,744
Growth Rate (%)	0.60%	0.44%	4.84%	6.80%
Earnings/Cash Flow
Profit before tax	727,711	701,187	719,054	637,668	558,809
Growth Rate (%)	3.64%	-2.55%	11.32%	12.37%
% of turnover	15.0%	14.6%	15.0%	14.0%
Profit after tax and minority interest	590,733	550,384	561,701	505,352	427,128
Growth Rate (%)	6.83%	-2.06%	10.03%	15.48%
% of turnover	12.2%	11.4%	11.7%	11.1%	10.1%
Dividends paid & proposed (net)	609,700	551,075	551,075	492,450	422,100
Growth Rate (%)	9.62%	0.00%	10.64%	14.29%
Depreciation and amortisation of assets	125,845	112,210	108,971	101,601	101,894
Growth Rate (%)	10.83%	2.89%	6.76%	-0.29%
Cash flow (net profit + depreciation + amortisation)	716,578	662,594	670,672	606,953	528,871
Growth Rate (%)	7.53%	-1.22%	9.50%	12.86%
% of turnover	14.8%	13.8%	14.0%	13.3%
Capital expenditure	191,184	361,008	212,217	158,442	93,015
Growth Rate (%)	-88.83%	41.22%	25.34%	41.29%	100.00%
Employment of Assets
Property, plant and equipment	1,369,874	1,293,757	1,046,463	945,812	889,741
Associated company	4,114	3,631	3,619	3,217	3,210
Intangible assets	62,814	61,024	61,024	61,024	61,024
Deffered tax assets	11,068	27,958	25,775	32,412	18,460
Receivables, deposits and prepayments	25,048	23,576	21,866	22,001	23,802
Net current (liabilities)/assets	(509,215)	(412,734)	(141,875)	(88,689)	100,324
Total	963,703	997,212	1,016,872	975,777	1,096,561
Financed by
Share capital	234,500	234,500	234,500	234,500	234,500
Reserves	474,096	542,637	581,944	516,706	418,219
Total shareholders' funds	708,596	777,137	816,444	751,206	652,719
Deferred tax liabilities	77,539	67,522	82,748	74,858	63,815
Retirement benefit liabilities	81,117	62,486	25,337	54,546	42,316
Borrowings	96,451	90,067	92,343	95,167	337,711
Total :	963,703	997,212	1,016,872	975,777	1,096,561
Per Share
Market price n1                                  (RM)	73.40	68.50	68.00	62.84	56.20
Growth Rate (%)	6.68%	0.73%	7.59%	10.57%
Earning n2                                            (sen)	251.91	234.71	239.53	215.50	182.14
Price earnings ratio (P/E)	29.14	29.18	28.39	29.16	30.86
Dividend (net)                                   (sen)	260.00	235.00	235.00	210.00	180.00
Growth Rate (%)	9.62%	0.00%	10.64%	14.29%
Dividend yield                                   (%)	3.5	3.4	3.5	3.3	3.2
Dividend cover n2                            (no.)	1.00	1.00	1.00	1.00	1.00
Shareholders' funds                        (RM)	3.02	3.31	3.48	3.20	2.78
Net tangible assets n3                    (RM)	2.75	3.05	3.22	2.94	2.52
Personnel                                            (no.)	5,578	5,702	5,847	5,669	5,721
Factories                                               (no.)	8	7	7	7	7

Note :
n1 : The market price represents last done price of the shares quoted on the last trading day of December.
n2 : Earnings per share and dividend cover are based on profit after tax.
n3 : net tangible assets consists of issued share capital plus reserves less intangible assets.


Financial Analysis :
1. Turnover increased 4% from year 2012 to 2013 but slowed down to less than 1% in year 2014 and 2015.
2. Profit after tax recorded for double-digit increase since 2012 to 2013 but recorded negative growth in year 2014, anyway, just recorded for 1-digit growth rate in year 2015, after negative growth in year 2014. (6.83+2.06 = 8.09% growth).
3. % of growth rate for profit after tax decreased, hence % of dividend paid & proposed also decreased.
4. Market price keep increase but slowing down from double-digit growth to single-digit growthin year 2013 to 2015.

Summary :  Although net profit, dividend growth in single-digit, but it is still growing, just under a slower pace.

Conclusion : 慢成长，股价及股息稳定。宜长握。放个10年8年应该可以有30% 至 50% 的增长。