Malaysian
6Powerhouses
That Returned
13% to 38%
Brought to you by
CONTENT

Introduction................................................. 04

7-Eleven Malaysia Holdings.................... 05

Carlsberg Brewery Malaysia................... 07

Dutch Lady Milk Industries..................... 09

Hartalega Holdings.................................... 11

Karex.............................................................. 13

OldTown........................................................ 15
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3
Introduction
Turbulence. No one likes it, regardless whether you
are flying or investing in the equity markets. But we
know for a fact that volatility is not going away. Not
now, not ever.
So, where does one seek shelter when the going
gets tough? Companies with market leadership and
solid track records typically weather the storm better.
In this report, you will find six powerhouses that not
only have an established presence in the segments
they are serving, they have also attracted a lot of
investors’ attention. Buying activities on these counters
have boosted share prices by some 13 percent to 38
percent.
Read on to find out who they are and if their
operational and financial performances are keeping
up with their valuations.
11 May 2015
•Shares Investment Equities Research Team
•Shares Investment Translation Team
[email protected]
Visit Shares Investment for
more investment research
material at :
http://www.sharesinv.com
4
7-Eleven Malaysia Holdings:
Growing With The Market Giant
BY: LOUIS KENT LEE
7-Eleven New Logo Tag Line
Listed in May 2014, 7-Eleven Malaysia Holdings (7-11) made
a strong debut when it rose more than 6 percent in its first
day’s trade.
Operating within the standalone convenience store
segment of the broader retail sector, 7-11 commands more
than 80 percent market share with an approximate store
count of some 1,677 within Malaysia.
On an estimated breakdown basis, about 10 percent of
the total number of stores are run by franchisees, while the
remaining 90 percent is run by 7-11.
7-11’s revenue comes from two main segments.
• Merchandise sales, which refers to sale of store items
from convenience food to tobacco products
• Commission sales ; this refers to mobile phone reload
services and gaming reload done through 7-11 outlets
600 Stores In The Next 3 Years
Comparing the store count between May and end
September 2014, a total of 120 new stores were added.
The company had mentioned plans of driving growth from
opening new stores, and was working towards its established
target of 200 stores by end 2014.
In the next three years, the company is expecting to open
a total of some 600 stores.
This strategy hinges on the network effect from the
outreach of more stores.
The refurbished stores will enhance the store experience
and is one of the catalyst to raise same store sales growth and
Basic Version
Stock Short Name:
SEM
Code:
5250
YTD Return (as at 15 April):
14.4%
Year-To-Date Gains
7-Eleven
14.4%
KLCI
5.1%
5
increase the penetration rate of its stores.
Do note however that new stores do take
a while before consistent and matured top
line contribution is generated.
Growth From Item Sales With
Higher Gross Margins
In FY13, 7-11 saw a change in gross profit
margin as it rose 1 percentage point to 27.9
percent, compared to that in FY12 of 26.9
percent.
Commissions Revenue (RM’000)
70,000
57,403
60,000
50,442
50,000
40,000
43,110
36,629
20,000
10,000
FY10
Investment Merits
• Largest player in the convenience retail
store segment (>80% market share)
• Sound strategy of ramping up stores to
increase penetration rate
• Underpenetrated sector compared to
Asian geographical peers
• Shift in product mix to items with higher
gross margin could be positive to overall
gross profit margins
Investment Risks
30,000
0
only 30.
Thailand, Hong Kong, and Singapore all
boasts convenience store per capita ratio of
above 100, with Thailand (176), Hong Kong
(170) and Singapore (107).
FY11
FY12
FY13
Source: Company Prospectus
This was largely attributed to the shift in its
product mix towards non-tobacco products,
for instance, in-store services’ commissions’
revenue.
Now, this segment itself currently has
a gross profit margin of 100 percent, and
as you can see, it has grown steadily from
RM36.6 million in FY10 to RM57.4 million in
FY13.
The main reason why this segment
can command a gross profit margin of
100 percent is primarily due to it bearing
negligible cost of sales.
Also, on a wider overview, Malaysia is
currently the least penetrated within the
convenience store industry in the region,
with a convenience store per capita ratio of
• Slowdown in consumer spending
• Expansion complications pertaining its
refurbishment plans
• Disruption in supply chain pertaining
products and services; especially services
with 100% gross margin component
• Inability to obtain licenses and permits
to operate its stores
Shares Investment Takeaway
Coupling the underpenetrated sector
scene compared to geographical peers in
the Asian region, there definitely looks like
there’s more room for expansionary growth.
7-11’s plans of expanding 600 stores in
the next three years might seem aggressive,
but depending on how new stores perform,
this could actually be a sound strategy that
can grow alongside the sector.
That said, the key thing to track right now
would be execution on 7-11’s part, we’d be
tracking, and if you’re interested, you should
too.
6
Carlsberg Brewery Malaysia:
Is 20.9X PE Expensive?
BY: PETER NG
For most of us, Carlsberg would likely be a common name
among a plethora of alcoholic beverages available in most
distribution channels such as supermarkets and convenience
stores in Malaysia.
According to Maybank IB Research, the maker of Carlsberg
in Malaysia, Carlsberg Brewery Malaysia (CBM) has an
estimated market share of more than 40 percent of the entire
Malaysian beer market as at 9M14.
CBM’s primary business operations are in the production
and marketing of alcoholic beverages that are for distribution
in Malaysia as well as export to other countries.
Almost Uninterrupted Growth
CBM registered a 19.5 percent growth in revenue between
the five years of FY10 and FY14. The company’s revenue
accelerated in four out of five times in the same period except
FY13 where it fell 1.9 percent to RM1,555.1 million.
The underlying reason for the slippage in revenue
performance was mainly due to a one-off stock rationalisation
exercise conducted by Carlsberg Singapore to reduce its
inventory cover days, so as to allow its products to maintain
its fresh quality.
In addition, the presence of contraband alcohol has not only
affected the group but also the entire industry’s performance.
Contrabands have also posed threats to all stakeholders
including the government in terms of losses in tax revenue
collection.
Although there are no guarantees as to when or would
the Malaysian government even step up its measures
Stock Short Name:
CARLSBG
Code:
2836
YTD Return (as at 15 April):
23.3%
Year-To-Date Gains
Carlsberg
23.3%
KLCI
5.1%
7
5 Years Revenue And Dividend Per Share
1,700.0
0.80
1,600.0
0.60
1,500.0
0.40
1,400.0
0.20
1,300.0
1,200.0
FY10
FY11
Revenue (RM’m)
FY12
FY13
FY14
0.00
Dividend Per Share (RM)
Source: FactSet
to control the presence of contraband
alcohol, however, given the aforementioned
inefficiencies, I am inclined to think that it
is just a matter of time before something
materialises.
Nonetheless, regardless of the two reasons,
the effect imposed on the consumption
of alcoholic beverages and ultimately the
revenue performance of CBM is likely to be
short term and a reversal can be expected in
the near future. After all alcohol is consumed
despite the ups and downs.
Rock Solid Fundamentals
Beyond the earnings frontier, CBM holds
a rock-solid balance sheet that leverages
on merely RM51.9 million in loans and
borrowings, representing less than 8 percent
of its total assets. Granted that it has RM87.7
million in its cash hoard, this amount is more
than enough to offset its borrowings.
As CBM is in its mature stage, the need
to re-invest earnings to propel growth is
relatively lesser, where capital expenditure
to net operating cash flow ranged from
4.9 to 18.1 percent in the five-year period
between FY10 and FY14.
The non-capital intensive nature of the
group’s business is definitely an advantage
for income investors, as this implies that
there will be a larger residual free cash flow
amount that can be paid out as dividends
after capital expenditure is subtracted from
net operating cash flow.
Next, CBM recorded a close to seven-fold
gain in dividend payments in the same fiveyear period where the latest payout amount
in FY14 was recorded at RM0.71.
Noting a trend where the company has
made several dividend payments that are
significantly higher than the free cash flow
amounts generated per year, this may lead
some to question on the group’s dividend
sustainability.
However, the gesture of returning excess
cash amounts from a company’s balance
sheet may not necessarily be a deal breaker,
and that is, if the company has no plans
to invest the cash amounts, it is a positive
sign for the management to return them to
shareholders instead.
Valuations
Based on CBM’s FY14 earnings per share
of RM0.692 and closing price on 15 April of
RM14.48, CBM’s PE ratio is 20.9, which puts
the group’s valuations in the rich territory in
the five-year period between FY10 and FY14.
When compared to its rival, Guinness
Anchor, which is currently trading at 22.7
times its PE ratio, on a relative scale, both
companies’ valuations appear to be fair.
While the current rich valuations may
be a taboo for investors, however, given
the current weak consumer sentiments for
discretionary spending which is a category
that alcohol falls under, this could potentially
create entry opportunities for investors as
earnings adjust downwards. At the end of
the day, this does not represent a permanent
change in consumption patterns unless
people begin to visit bars for Coca Cola.
8
Dutch Lady Milk Industries:
Milking The RM3b Cash Cow
BY: CHOO HAO XIANG
Milk forms an important portion of a balanced diet. Taking
care of Malaysians’ nutritional needs via the supply of quality
dairy products for the past 40 years is Dutch Lady Milk
Industries.
How Does Dutch Lady Make Money?
Dutch Lady makes money via sales of dairy products that
are for the local and overseas market.
The company’s products that are marketed under Dutch
Lady and Friso have a strong following as indicated in its
revenue growth. Since 1991 when data was made available,
revenue has increased at a compounded annual growth rate
(CAGR) of 6.9 percent to reach a record RM1,000.2 million in
FY14.
The growth came on the back of the company’s extensive
product range, which has widened considerably since its
incorporation in 1963, thereby allowing it to capture a farreaching customer base. From infant formula and growing up
milk to fruit juice and yoghurt snacks, the company’s products
are catered to children and adults.
On the supply side, to ensure reliable raw material supplies
that goes into its production facility at Petaling Jaya, Dutch
Lady initiated its Dairy Development Programme in 2008.
The programme is designed to help local farmers produce
better quality milk in higher volumes and helps to ensure
sustainability of milk supply to the company. Dutch Lady is
the largest purchaser of local fresh milk from the Department
of Veterinary Services.
Stock Short Name:
DLADY
Code:
3026
YTD Return (as at 15 April):
13.6%
Year-To-Date Gains
Dutch Lady
13.6%
KLCI
5.1%
9
Established Market Presence
Dutch Lady is the local market leader in
key milk categories such as ultra heat treated
milk, sterilised milk and growing-up milk.
The company is also one of the accredited
suppliers appointed by the Ministry of
Education. Under the Program Sekolah Susu
1Malaysia, Dutch Lady supplies milk to more
than 200,000 school children in Kelantan
and Terengganu. This can go a long way in
fortifying the company’s brand value.
Consistent Solid Results
The beauty of selling a daily necessity is
that it provides stability. For the past decade,
earnings had been rising at a CAGR of 16.8
percent to RM109.8 million in FY14. Behind
the hike were increasing revenue and
good cost controls. The company has been
keeping its costs in check as its profitability
metrics have been improving.
Of course, high earnings quantity means
nothing without earnings quality. Measured
by the ratio of operating cash flow to net
profit, Dutch Lady has a 10-year average
of 1.2. This essentially means that the
company’s earnings quality is superior as it is
not dependent on non-cash sources that are
one-time in nature such as mark-to-market
valuations.
Going back to profitability measures, the
company’s ROE ballooned to 63.7 percent
in FY14 from 14.1 percent 10 years ago. For
prudent investors, they will be glad to find
out that the surge was achieved with zero
debt on its balance sheet. This translates to
the company’s ability to grow without debt
funding.
To reward its shareholders, Dutch Lady
has been dishing out dividends regularly,
apportioning a third of its earnings on
Free Cash Flow And Dividends (Figures In RM)
3.00
2.50
2.00
1.50
1.00
0.50
0.00
FY02
FY03
FY04
FY05
FY06
FY07
Free Cash Flow per Share
FY08
FY09
FY10
FY11
FY12
FY13
FY14
Dividends per Share
Source: FactSet
average for the past five years and paying
them out as dividends.
More interestingly, a look at free cash flow
per share and dividend per share figures,
reveals that since FY02, free cash flow
generated has been larger than dividend
paid. This shows that the company still has
sufficient residual cash even after setting
aside the money required to maintain
or expand its asset base, to pay it out as
dividends.
Valuation
Dutch Lady is currently trading at 28.1
times its FY14 earnings. This is on the high
side considering its most recent five-year
range of 13.9 to 24.7 times.
While the company is not likely to run into
any issue in sustaining its dividends payout
in the foreseeable future, with its valuation
near historic high, investors might turn
cautious and want to learn about how Dutch
Lady intends to defend its market position
and ensure that its growth trajectory is
sustainable amidst intensifying competition
before committing.
10
Hartalega Holdings: 44.6% Rebound
From 1-Year Low, What’s Next?
BY: TAN JIA HUI
Malaysia is the world’s largest supplier of natural rubber
and nitrile rubber gloves and is estimated to supply over 60
percent of the global glove demand. While there are many
players in Malaysia’s glove industry, Hartalega Holdings
stands out as the indisputable market leader, particularly in
the nitrile glove segment.
Industry And Company Background
The rubber glove market can be separated into two major
components – natural rubber gloves and nitrile rubber gloves.
The former is produced using natural rubber while the latter
is manufactured using synthetic latex rubber.
While natural rubber gloves have accounted for the largest
portion of the global rubber glove demand, global nitrile
gloves demand has been increasing steadily in the past years,
surpassing natural rubber glove in 2013 with a demand ratio
of 51 percent to 49 percent, as noted by the company.
The growing demand for nitrile gloves can be attributed
to the rising awareness of latex allergies, high puncture
resistance property of nitrile gloves and an increase in
healthcare spending worldwide.
Hartalega is a pioneer in the rubber glove industry,
introducing the world’s first soft nitrile glove in 2002, starting
the demand shift from latex to nitrile gloves all over the
globe. Today, Hartalega prides itself as the world’s largest
nitrile glove producer, with annual production capacity of
13.6 billion gloves.
As of FY14 (financial year ended 31 March 2014), nitrile gloves
sales account for more than 90 percent of the group’s total sales.
Stock Short Name:
HARTA
Code:
5168
YTD Return (as at 15 April):
17.8%
Year-To-Date Gains
Hartalega
17.8%
KLCI
5.1%
11
Operating Margin
35%
30.9%
32.1%
30%
27.7%
29.0%
X
X
27.0%
25%
20%
15%
X
10%
X
5%
0%
FY09 /10
Hartalega^
FY10/11
FY11/12
Supermax*
X
FY12/13
Kossan*
X
FY13/14
TopGlove^
Source: FactSet
*/^: Company’s latest ended fiscal year is FY13/FY14.
Superior Margins
As a pioneer in the nitrile glove segment,
Hartalega has been able to enjoy supernormal
operating margin above 27 percent in the last
five years, well above the operating margins
of its competitors (below 19 percent).
According to the company, the superior
margins are achieved through product
innovation and quality enhancement, with
the firm spearheading the automation
technology in manufacturing processes
since 1994.
Today, Hartalega has 55 production lines
that are fully interchangeable between nitrile
and natural rubber gloves production, which
allows the group to cater quickly to changes
in demand trends.
The firm also boasts the fastest production
line speed of 45,000 pieces/hour/line in its
latest Plant 6.
With increasing competition from other
players who are also raising emphasis
and capacity on nitrile glove production,
increment in efficiency is needed for
Hartalega to stay at the top of its game.
Positive Catalyst: NGC Plant
With an estimated total investment value
of RM2.2 billion, Hartalega’s next generation
glove manufacturing complex (NGC) is
poised to be a growth driver for the group.
According to the firm, the mega complex
will house six manufacturing plants and
72 production lines, which is expected to
increase production capacity by 15 percent
annually until 2020. Upon completion, the
group’s production capacity will expand
substantially to over 42 billion pieces per
annum.
Management has stated that the first
phase of the NGC will begin operations in
November. Under phase one, 2 plants with
12 production lines will be commissioned
and completed by 4Q15 (quarter ending 31
March 2015), boosting installed capacity to
22 billion by FY16.
The development of its NGC plant
highlights the group’s focus on productivity.
Streamlined plants and warehouses as
well as automation and technologically
advanced production lines installation, may
help sustain the firm’s supernormal margins
amidst competition.
Targets And Ratings
Out of the 12 research houses that cover
the stock, three have issued a ‘Buy’ rating;
five have given a ‘Hold’ rating, while three
have ‘Sell’ ratings with an average target
price of RM8.01. The company closed at
RM8.25 on 15 April, after rebounding some
44.6 percent from its one-year low in May
2014.
Furthermore, based on data from FactSet,
Hartalega is currently trading near its 5-year
high trailing twelve month price to earnings
of 30.9 as of 15 April, the highest amongst
its peers, something which investors should
also be taking into consideration.
12
47.5% Upside Potential
For Karex Not Impossible
BY: LOUIS KENT LEE
Karex is the world’s largest condom manufacturer with a
market share of some 10 percent globally. Yes. Globally.
Apart from manufacturing its own brands of condoms under
the brand names “Carex” and “INNO”, Karex manufactures for
renowned brands like Durex, Lifestyle, Trustex, and One.
It has sales points spreading across more than 110 countries.
Further Penetration In Market Share
It is estimated that by 2018, the global consumption for
condoms will reach 38.2 billion, registering some compounded
annual growth rate (CAGR) of some 9 percent.
Karex upped its production capacity from 3 billion pieces
per annum to 4 billion pieces per annum for FY14.
Guidance from the company revealed that Karex is on a
steadfast expansion plan to push its manufacturing capacity to
reach 6 billion pieces per annum throughout 2015 and 2016.
This would mean a probable increase of market share to
some 16 percent instead of the current 10 percent.
Stock Short Name:
KAREX
Code:
5247
YTD Return (as at 15 April):
37.9%
Year-To-Date Gains
Hands Down Competition
Looking across the manufacturing capacity of the World’s 10
largest condom manufacturers (shown in table 1), it is noted
that Karex’s capacity then already exceeds that of its closest
competitor by some 50 percent.
This trend is very likely to continue, and it is not surprising
if the capacity gap widens based on the production goals set
by Karex (6 billion pieces).
As of 1Q15, Karex reported that its manufacturing capacity
has increased from 3.5 billion pieces for FY14 to 4 billion in 1Q15.
Karex
37.9%
KLCI
5.1%
13
In addition to that, there is also minimal
industry competition as Karex’s competitors
are more focused on branding and selling
their own condoms.
Table 1: World Largest Condom Manufacturers
Company
Annual
Geography
Capacity
1 Karex
2
3
4
5
6
7
8
9
10
Malaysia,
Thailand
TTK-LIG Ltd
India
Thai Nippon Rubber Industry Co Ltd Thailand
HLL Lifecard Ltd
India
Suretex Ltd
Thailand
Qingdao London Durex Co Ltd
China
Guillin Latex Factory
China
Unidus Corp
China
Guangzhou Guangxiang
China
Enterprises Group Co. Ltd
Doubleon Latex Factory
Pleasure Latex Products S/B
Malaysia
Profitability Margins (%)
70
7.38
30
20
1.5 - 2.0
2.0
1.6
1.2
1.0
1.0
0.9
0.8
0
This is the complete opposite of Karex’s
business model as sales from its own brand
of condoms only make up less than 5
percent of its total revenue, while more than
approximately 60 percent of its revenue
is from the manufacturing and supply of
condoms to brand owners such as Durex,
Trustex and ONE.
Superior Margins, Profitability
Likely To Ensue
We note that Karex has reflected stready
growth in its profitability ratios. Specifically,
gross margins, net margins, operating
margins have all been constantly rising.
With further traction expected from higher
economies of scale, and the reduced price
of its raw materials such as rubber, we think
it is not difficult to see further increase in its
gross margins.
It is noteworthy that current performance
on its sheets have not even taken consideration
of the full effect of its 55 percent purchase of
15.73
12.55
40
10
Source: Company, Infobusiness Research
15.78
50
3.0
0.7
18.86
60
29.09
6.37
4.36
3.84
25.89
17.41
13.69
FY11
FY12
Gross Margin
FY13
Net Margin
FY14
Operating Margin
Source: Company, FactSet
Global Protection Corp (GPC), the company
behind ONE brand condoms.
The acquisition, which effectively enables
Karex to diversify its target market and
expand its list of distribution countries will
see Karex having access to some 25,000
stores in the US and Canada that GPC owns.
Consolidating the expected increase in
reach and contributions flowing in from GPC,
Karex’s performance for 2015 is worthwhile
to look forward to.
Dividend Policy, Valuation Room
Consensus
With effect from FY14, Karex also declared
its minimum 25 percent dividend payout to
shareholders.
We feel that the dividend policy is
sustainable and it is not difficult for the
company to reward its shareholders on a
constant basis, and not impossible for it to
grow.
The mean target price on the street
attributes a 47.5 percent upside for Karex’s
current price (pre-adjusted close on 16
December) of RM3.20. The target range lies
from RM4.57 to RM5.10 for Karex.
14
More Than 35% Market Share In Malaysia;
Revealing The OldTown Magic
BY: LOUIS KENT LEE
OldTown, who was one of the pioneers for the
commercialisation of large-scale white coffee processing,
boasts more than 35 percent market share in the white coffee
sub-segment in Malaysia.
Similarly, it also boasts about 12 percent market share in
the coffee mix segment. Now, let’s take a look at some few key
anchor investment merits of OldTown.
The Dual Sword Strategy That Works
Its two key operations; Café Chain (F&B) and the beverage
manufacturing (FMCG) business complement each other very
well as a single brand strategy approach.
It has enabled the efficient cross-selling and brand building
strategies of the group where the F&B segment expounds its
footprints by opening café outlets, and the FMCG segment
spearhead market penetration into new markets via modern
trade channels.
Market Leader In Café/Coffeehouse Industry In
Malaysia
Currently OldTown has a total chain of 246 café outlets in
Malaysia, Singapore, Indonesia, and China.
OldTown leads the café industry in Malaysia with Starbucks,
Papparich and Coffee Bean trailing behind. As of 9M15, sales
of the F&B segment contributes approximately 53 percent of
the group’s total revenue.
Mass Market And Halal Certified
OldTown’s café targets the mass market audience with an
Stock Short Name:
OLDTOWN
Code:
5201
YTD Return (as at 15 April):
18.7%
Year-To-Date Gains
OldTown
18.7%
KLCI
5.1%
15
obvious product differential pricing model
that’s apparent when compared to its peers.
(e.g. less than RM5 for a cup of OldTown
white coffee versus a cup of Americano in
Starbucks at more than RM5 easily)
The selection of its locations at high traffic
outlets, targeted set meals offerings in the
breakfast, lunch, teabreak, dinner, and late
night supper clusters gels the stickiness of
repeat customers.
In Malaysia, more than 66 percent of
the population is made up of Malays, and
currently 20 to 25 percent of OldTown’s
customer base is Malays.
All food and beverages sold at OldTown’s
café outlets is Halal.
This effectively allows the group to tap
effectively on multi-pronged promotional
activities that include Hari Raya, the fasting
month, and importantly, cater to multiple
target consumer clusters.
Ramped Production Meets Strong
Distribution
The group added a new beverage
manufacturing facility that commenced
operation in mid-2013, with enough unutilised
capacity to enable the group to cope with
rising demand for future growth in the next
five years.
Increased capacity can only be viewed
in good light with corresponding strength
in distribution. The group’s distribution
network spans across the ASEAN region with
prominent light seen in Singapore, Hong
Kong, Thailand and Taiwan.
Revenue
Net Income
Operating Cash Flow
Free Cash Flow
Growth
(FY11-FY14)
33.9%
21.8%
63.2%
73.4%
Source: Company, Factset, Bloomberg
FY14 Reported
Numbers
RM382.2m
RM48.94m
RM67.5m
RM50.13m
Strong Numbers
As a testament to its growing presence
and ability to capitalise on store growth and
its products from its FMCG sector, revenue
has been steadily increasing over the past
3 years.
This is followed with steady year on year
increases in its net income.
Notably, what caught my attention was the
steady increases seen in its operating cash
flow and free cash flow, where operating
cash flow for FY14 actually eclipsed net
income, endorsing the strength of OldTown’s
operations generating cash.
As it was on an expansionary route to
increase its store counts and production
capacity over the past three years, the fact
that free cash flow also sung the same steady
increases over the three year period shows
that OldTown’s expansionary measures are
well contained.
Its operating margin (FY14) is also in the
high teens (currently at 17.4 percent), which
is higher than that of its close domestic peer
such as Berjaya Food (16.3 percent).
Return on equity of 15.26 percent also
ranks it higher than that of Berjaya Food
(14.82 percent).
Its current cash hoard is huge and makes
up approximately 40 percent of its total
assets. This is more than enough to pare off
total liabilities of RM89.7 million for FY14.
Valuation
OldTown’s Price Earnings (PE) is currently
at 16.2x, which is considered not overtly
expensive when decked to its 52-week PE
range of 13.4x to 21.2x.
OldTown also boasts a dividend yield of
some 3.7 percent, with a payout ratio of 50
percent.
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