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INFOLINE TEC GROUP BERHAD

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Thought on Joel Greenblatt's ROIC:E/P approachINDEX:KLSE -INFOTEC youtu.be/GUV3GHUePRk?si=lHLAJSyDMlfbbbzb Joel Greenblatt has decrypted the secret of valuation, that there are 2 ultimate variables in determining the intrinsic value, namely ROIC (Return on Invested Capital) and E/P (the inverse is P/E). This insight is in line with the essences enshrined in Warren Buffett and Charlie Munger's valuation mental models : 1. “Investors should remember their scorecard isn't computed using the Olympic-diving method: Degree-of-difficulty doesn’t count. If you're right abt a business whose value is largely dependent on a single key factor that is both easy to understand & enduring, the payoff is the same as if you should correctly analyze an investment alternative characterized by many constantly shifting & complex variables. - Warren Buffett - 2. “The higher return a business can earn on its capital, the more cash it can produce, the more value is created. Over time, it is hard for investors to earn returns that are much higher than the underlying business’ return on invested capital.” - Warren Buffett - 3. “Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns six percent on capital over forty years and you hold it for that forty years, you’re not going to make much difference than a six percent return – even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end up with one hell of a result.” - Charlie Munger - Which approach do you prefer? Joel Greenblatt's ROIC:E/P approach or Peter Lynch's PEG approach? Is it possible to merge Joel Greenblatt's ROIC:E/P approach and Peter Lynch's PEG approach into a single formula? Kindly figure it out, it's worth to do so.
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by Vidya2
$KLSE-INFOTEC: Thought: Profit Per EmployeeINDEX:KLSE -INFOTEC Wishfully the Gross Profit per Employee could return, stage by stage, to RM 740k for FYE2024 & RM 848k for FYE 2025 with ever increasing Revenues. With RM 740k Gross Profit per Employee, that would translate to around RM 370k Net Profit per Employee. With RM 848k Gross Profit per Employee , that would translate to around RM 424k Net Profit per Employee. Or more, if the regional subsidiaries expansion in China, India, Singapore and Japan can bear more growth fruit in Revenues with the recent high GPM and NPM maintained.
ILong
by Vidya2
$KLSE-INFOTEC FYE2023 Number of workforce (Employees)INDEX:KLSE -INFOTEC Number of workforce (Employees): 26 permanent + 5 contract = 31 employees in total (dated LPD 23 May 2022, reported in IPO Prospectus dated 20 June 2022, page 132) 60 employees in total (dated 31 May 2023, reported in NST News). The number of employees have been doubled in a year, indicating rapid and aggressive APAC regional expansions have taken place. Important point emphasized in the NST news: The team is still growing in line with its expansion drive. That would translate into that more employees are expected onboard driven by continual business growth and in turn additional employees will push growth further on.
ILong
by Vidya2
INFOLINE TEC GROUP@KLSE : OCROICₘₒ𝒹 based ValuationINFOLINE TEC GROUP@KLSE OCROICₘₒ𝒹 based Valuation OCROICₘₒ𝒹 = 100×(6,325+(7,419+29,115+2,105)-(1,836+6,312+3,312+5,216))÷(58,317+4,879+407+107+(7,419+29,115+2,105)-(1,836+6,312+3,312+5,216)) = 33.0185706115 OCPS = (6,325+(7,419+29,115+2,105)-(1,836+6,312+3,312+5,216))÷363,229 = RM 0.0778792442 OCROICₘₒ𝒹 based Intrinsic Value (min) with 3.5% inflation rate = RM 0.0778792442×(1-(1÷1.035)^33.0185706115)÷(1-(1÷1.035)) = RM 1.5634207107 OCROICₘₒ𝒹 based Intrinsic Value (max) = RM 33.0185706115×0.0778792442 = RM 2.5714613246
ILong
by Vidya2
Twin Compoundings INDEX:KLSE -INFOTEC Dividend declaration has proposed two possible outcomes. 1. Trade receivables received from customers are inflating the free cash flow and retained earnings. 2. Higher revenues and profits are foreseen with orders from Malaysia, India and perhaps China as the economy is improving in the said countries, not to leave out Singapore and Japan markets. 3. Dividend (DPS) compounding kicking off denotes the Profit (EPS) Growth sustainability. 4. Profit (EPS) Growth is the driver of intrinsic value compounding which will kick off the investors' capital compounding sooner or later. Infoline Tec Group is a 5 stars stock in light capital business model which Warren Buffett has advocated to retailers to invest in for capital compounding + dividend compounding.
ILong
by Vidya2