Teh Hong Piow Leadership
Section C Public Bank 1a) Portfolio Performance Holding Period Return HPR =Ending Price-Beginning PriceBeginning Price+Cash Dividend ? 100% =RM15. 50-RM 15. 32RM 15. 32+0 ? 100% =1. 17% b) Market Performance Market Performance MP =Ending Index-Beginning IndexBeginning Index? 100% =1669. 40-1654. 041654. 04? 100% =0. 927% Axiata Group 1a) Portfolio Performance Holding Period Return HPR =Ending Price-Beginning PriceBeginning Price+Cash Dividend ? 100% =RM6. 00-RM 5. 83RM 5. 83+0 ? 100% =2. 92% b) Market Performance Market Performance MP =Ending Index-Beginning IndexBeginning Index? 100% =1669. 0-1654. 041654. 04? 100% =0. 927% Nestle (M) Bhd 1a) Portfolio Performance Holding Period Return HPR =Ending Price-Beginning PriceBeginning Price+Cash Dividend ? 100% =RM63. 10-RM 59. 00RM 59. 00+0 ? 100% =6. 95% b) Market Performance Market Performance MP =Ending Index-Beginning IndexBeginning Index? 100% =1669. 40-1654. 041654. 04? 100% =0. 927% Section D Public Bank a) The portfolio performance of Public Bank is better as compared to the market performance. The HPR of Pubic Bank is higher than the marker performance, which is 1. 17% as compared to market performance which is only 0. 927%. b) ) Public Bank is a well reputed and well-known company for its prudent management, excellence services, strong profitability, strong corporate culture and corporate governance. It is currently a leading provider of financial services in Malaysia. It also provides bank operations in Hong Kong, Combodia, Vietnam, Laos and Sri Lanka. Public Bank had performed well in the market share in year 2011. The overall ratio in the market share in year 2011 is higher than the year 2010. According to the sustainability profit growth of Public bank, it has stronger performance in year 2011 than in year 2010.
Moreover, the net income of Public Bank Group had increased by 8. 3% from RM6,838. 5 million in 2010 to RM7,408. 6 million in 2011. In addition, it has a steady asset growth from year 2010 to 2011. Its financial report encouraged us to invest in the company as it has a steady growth and lower risk. During the subsequent to the financial year end, which is on 30th January 2012, directors of Public Bank had declared a second interim single tier dividend of 28%, with the amount of RM980,596,036 in the current year. According to the key statistic of Public Bank in dividend growth, it grown 0. 3% in 5 years. It gives confidence to us for investing in this company for its stable growth in the economic. Source: Annual Report (2011). Public Bank. Retrieved from http://announcements. bursamalaysia. com/EDMS/subweb. nsf/7f04516f8098680348256c6f0017a6bf/bd33262bdcaa8fc1482579ad00116c90/$FILE/PBBANK-FinancialStatements%20(971MB). pdf Source: Annual Report (2011). Public Bank. Retrieved from http://announcements. bursamalaysia. com/EDMS/subweb. nsf/7f04516f8098680348256c6f0017a6bf/bd33262bdcaa8fc1482579ad00116c90/$FILE/PBBANK-FinancialStatements%20(971MB). pdf Source: The Star Online (2013).
Public Bank Bhd. Retrieved on 8th January 2013 from http://biz. thestar. com. my/marketwatch/charts/l. asp? code=1295~PBBANK&p1=16. 18&p2=16. 16&p3=16. 22&p4=16. 1&p5=16. 18&p6=0&p7=0. 00&p8=46667&p9=14. 545 Axiata Group a) The portfolio performance of Axiata Group is relatively in good performance as compared to the market performance. The HPR of Axiata Group is 2. 92%, which is higher than the Market Performance of only 0. 927%. b) c) Axiata Group Berhad is an investment holding company which provides communication and consultancy services.
It offers mobile telecommunication, interconnect, television transmission and other services. It also dealing of marketable securities, trading and distribution of communication devices and its related products. According to the details, it was founded in 1992 and as on 23rd May 2012, the company has approximately 190 million mobile subscribers in Asia. According to the financial results of Axiata Group Bhd in the last four years, which is from year 2007 to 2011, the revenue of the company grew to the tune of 60%. Their profits almost doubled for these four years.
The company had a very good performance which attracted us to invest in the company. On the other hand, the cash position of the company had increased from RM6. 3 billion to RM6. 6 billion and the ROIC improved from 11. 8% to 12. 2%. Moreover, the diversification of the company grown with further progress with 56% of revenue generated outside of the Malaysia. According to the Axiata Group Bhd annual report 2011, the Group’s total subscriber base expanded to around 200 million, increase 25% from a year ago and growing an average of 3. 3 million per month.
These made the Group one of the largest telecommunications companies in the region. The Group shows a positive data trends and performance throughout the countries in Malaysia and overseas. This gives us greater confidence in investing in the company, which given us lower risk to invest. According to the performance highlight in the past four year of the Group, which is from 2008 to 2011, the graph relatively shows increasing in the operating revenue, EBITDA, PAT, NORMALISED PATAMI, POIC and SUBSCRIBERS. It shows that the company has reater performance in year 2011, and we believe that the company will show strong performance in year 2012, and hence, we decided to invest in the company. Source: Annual Report(2011). Axiata Group Bhd. Retrieved on 8th January 2013 from http://axiata. listedcompany. com/misc/ar2011. pdf Nestle (M) Bhd a) The Portfolio Performance of Nestle (M) Bhd is performing well as compared to the Market Performance. The HPR of the Nestle (M) Bhd is 6. 95%, as compared to the Market Performance of only 0. 927%. It is relatively having high performance in the market. b) ) Nestle Malaysia Bhd is a leading Food, Nutrition, Health and Wellness Company in the region. It grown to be the world’s largest good company which offering more than 8,500 brands and 10,000 products. It also has more than 456 factories over 80 countries and more than 283,000 employees. Nestle Malaysia Bhd has encountered turnover of RM1. 16 billion in Quarter 1 in 2012, which is 8. 5% higher than the previous corresponding period. In the first quarter of 2012, Nestle Malaysia Bhd had good growth performance in both domestic and export sales. It also has increased profit before tax of RM206. million and profit after tax of RM158. 1 million which grew by 8. 2% and 7. 4% respectively compared to the previous period. Moreover, despite exports its products across the globes; the Group has successfully exports more than half of its products to ASEAN region. The stable performance of the company attracted us to invest in the company although the price is high. In addition, the company also introduced new products to the market, which these products will directly affect the strong demand of the domestic and hence affect the economic performance of the company.
Moreover, the sustained economic growth of overseas countries, encouraged the performance of export sales, and increased the sales of 18% to inter-market customers. It is relatively a trusted brand to the Malaysian, where it is well-known of its healthy nutrition drinks. On the other hand, Nestle (M) Bhd also launched the Nestle Project Rilead in October 2011, where it aims to create a landscape for people, nature and agriculture can co-exist harmoniously in their need for water. This project will give an initiative of seeing the reforestation of the land. This relatively giving us good image on the