SAP - Most Valuable German Company

Quoting from one article I read earlier:

"SAP has vaulted past Siemens AG and Volkswagen AG to become Germany’s most valuable company despite revenue that’s 10 percent of Volkswagen’s and one-fifth that of Siemens. With a market capitalization of $102 billion, SAP is the world’s ninth-most-valuable technology company and the only European in the top 10. SAP’s price-to-earnings ratio, a gauge of how much investors are willing pay for the stock relative to profit, is the highest of the top 10. At 27 times earnings, SAP’s P/E exceeds Google Inc.’s 24.5 and 16.7 for archrival Oracle Corp., according to data compiled by Bloomberg."

SAP from user's perspective, either most hated or loved software. It's incredibly complex, over-engineered and not too user friendly. But it's a necessarily evil from management's perspective. As one analyst described below..

“It’s become like an octopus,” said Heinz Steffen, an analyst with Fairesearch GmbH in Kronberg, Germany. “If you’re trying to make your processes more productive, you’ll have a tough time avoiding SAP.”

And I agree with him.

House Renovation (Update)

Finally, after two months back and forth dealing with contractors, the reno has completed! I can say we are satisfied with final end-product :)

Quarterly Analysis for Big 4 (Plantation Companies)

For quarter end of Dec 2012, following is analysis of net profit margin of Big 4 plantation companies in Malaysia.

IOI again leading in net profit margin % with 15.03% followed by KLK with 11.73%, Sime Darby 6.49% and Felda 6.14%. IOI has done quite well so far. Congrats!

9 months ..too fast

The other day we went to BSC jungle gym kid, Adileeya was really happy. At 9 months old, she is in playful mode and sometimes we just couldn't keep up when she is crawling around the house. Now she can stand on her own, one step before she can start walking....so fast..

Traveller's Hub at Publika

On the weekend, we went to Publika to visit my brother's Traveller's Hub mini kiosk. In addition to physical presence, my brother has setup online portal www.jom.com.my as one stop center for all travelling needs and travel accessories web store http://travellershub.my/. It's great effort by him, certainly the experiences gained by this venture will be worthwhile and priceless. Here are some snapshots of the kiosk..

House Renovation

Been quite busy lately with our house renovation. Our plan is to improve porch area with modern contemporary design and hopefully change the appearance of our house after completion. Will update the progress and upon completion pics...

*Edit - In progress..

Happy 5th Anniversary

Wow! How time flies, a year back I wrote the same exact entry for our anniversary. But I don't feel like a year...For the 5th Anniversary, we went to Doubletree by Hilton for buffet dinner. Not so bad, the restaurant looks classy but food wise, a little bit limited of varieties. 

So, what's been going on this year? The little baby on left is our new addition to the family and she is so bam bam (chubby) and super cute! The big brother on the right is already enrolling pre-school kindergarten at Smart Reader Kids. My wife is almost finishing her Master studies, thesis is done and her last final exam is around the corner.As for me, I'm just enjoying watching the kids growing up and that's all enough for me. Happy new year everyone!

IOI's financial year 2012 brief analysis

I’ve been digging up details on IOI’s Annual Report for financial year 2012 recently. What I concerned most are anything relevant to me thus the figures presented would relate to that.

Let see, the revenue was RM 15 billion but what important to me is the revenue contribution from Loders Croklaan. From the ‘Sales of Specialty Oils and Fats and related products’, I can see that the revenue was RM 3.5 Billion so it’s about 23% from total revenue. It underscores the importance of Loders Croklaan’s business to IOI.

This is interesting to me as well. The cost of salaries/wages was RM 700 million, roughly 4.6% of revenue and up 7% from previous year (could be due to annual increment, business expansion etc).

Generally, profitability will determine how much bonus can be awarded to employee. But shareholders must be rewarded first before employees, thus after deduction of dividends we can see how much left for employee. Of course company can retain earning as capital for business expansion (as what Apple did, they retain all earning (no dividends or bonus) and it has reached USD 100 Billion). Net Income for IOI after tax was RM 1.8 Billion and shareholders were rewarded with 16 sen per share totaling RM 1 Billion. So what’s left still significantly huge amount, RM 800 Million!  

Ever wonder why IOI is called cash rich company, so here it is. As of 2012, total available cash was RM4.3 Billion!

  Last but not least, I’m interested to know the revenue by geographical location. Both Europe and Asia (exclude Malaysia) share almost equivalent sales followed by Malaysia and North America. But Europe and North America combined present almost half of group revenue, given the economic volatility from this region, it has some significance risk to IOI. Hopefully demand from Asia would be able to offset this risk.

Quarterly Analysis for Big 4 (Plantation Companies)

For quarter end of Sept 2012, following is analysis of net profit margin of Big 4 plantation companies in Malaysia.

IOI again leading in net profit margin % with 18.21% followed closely by KLK with 17.79%, Sime Darby 8.78% and Felda 5.95%.

SAP Warehouse Management (WM)

Adding to my new portfolio now is SAP WM. So I'm officially a SAP Techno-Functional Consultant now. We have kicked off SAP WM project last week at our plant in Pasir Gudang. To understand better the current warehouse management process, we did some site visit and it was beneficial. The purpose of this project is to automate the process of warehouse management so productivity and efficiency can be improved significantly.In addition, SAP WM will be better integrate with our existing SD/MM module. Besides SAP WM, the other two projects (SAP Plant Maintenance (PM) & SAP Material Requirement Planning (MRP))  also will be implemented concurrently. Next year will be busy for me....

Our key user from WM and project lead from Netherlands

 Pallet of Products by Racks

 Loading Area