Advance Information Marketing (0122)

2007年12月13日 星期四Advance Information Marketing (0122)AIM is listed in Mesdaq since 2005. Its EPS on 2006 was 6.22 sen.Current financial year EPS is expected achieving 5 sen.http://www.aim-net.com.my/index.html

AIM core business is doingcustomer loyalty program. It is a marketing company that providebusiness solution to entreprise, for running customer loyalty program.CFY, it is expanding its business to china via a new subsidiary.

Attractingpoint in AIM is not the business nature (since it is a new company,need time to prove its moat or entry barrier). Actually, AIM is facinga decreasing in their profit margin. 2006, its ROE is 25%,but 2007drops to 19%.

Actually, i think its buying price is attractive.according to peter lynch selection, i classified AIM under 资产富裕型. Or wealso can say its buying price give us a margin of safety. Its currentNTA is RM0.27 , compare to current share price is RM0.32. It has RM1million long term debts, compare to its cash of RM20million++. So, itis a net cash company. divide by 155miilion issued share, its net cashper share is RM0.13. Means, actual price is less than RM0.20. it is agreat discount.

I bought AIM for a few times, now alreadyaccumulated 11,500 units with average price of RM0.32. Refer to its EPS5 sen this year, PE is just around 6.3 and this is not include thediscount of net cash in hand.

On 11/12/07, it just announcedthat interim dividend of 10%,tax exempted, pay at 26/12/07. refer toRM0.32, this dividend is equal to 3.3%. So, current financial year, itsdividend is expected more that 5% at least.

with EPS of 5 sen,its return rate is 0.05/0.32= 17.5%, which is extremely high. from myown calculation, if AIM able to maintain ROE of at least 15% for next 5years, buying AIM with RM0.32, i will enjoy 20% compound interest growwith its share.

For my opinion, AIM is greatly undervalued. Itsbusiness maybe competative, maybe not. It is still new and has to bestudied. But, the investment is valuable with its high dividend yieldand high cash in hand. Actual buying price that is lower than NTA, alsooffer investors a great margin of safety. If AIM grow well, then thisis extra benefits to investors.

我会定期更新。谢谢意见和你们的支持。
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