1st file is the assignment question2nd file is example of assignment from last year3rd file is how to analyse financial statements of the company
I need:1 word file 1500 words report1 ppt file with slides of presentation of the report in word.1 excel file with financial statement analyses1 word file which has references
Name:__ _____ Tutorial Section(Day and Time):_ __ Student ID:_____ ____ Tutor Name: _ __ BFW3121 Investments and Portfolio Management INDIVIDUAL ASSIGNMENT II (100 Marks total, to be submitted at the 11th week) Overview: Suppose you are an investment analyst, your supervisor, a portfolio manager asked you to write an equity research report and recommend one (1) Malaysian common stock which you start covering it for the first time. This initiating coverage report should includes the main sections below: · Recommendation – Typically to either buy, sell, or hold shares in the company. This section also usually includes a target price (i.e., RM7.25 in the next 12 months). · Company Information – Background, general information, any recent information, new releases, quarterly or annual results, major contracts, management changes, or any other important information about the company. · Investment Analysis – A summary of why you believes the stock will over or underperform and what will cause it to reach the share price target included in the recommendation. This is the most important part of the report. It also called “Catalysts” or “Growth engines” · Financial Information & Valuation – A forecast of the company’s income statement, balance sheet, cash flow, and valuation. This section is often an output from a financial model built in Excel; or can get the forecase from other sources. · Risk – An overview of the risks associated with investing in the stock. The Technical analysis is NOT required in this report. Requirements: 1. Please write an equity research report 2. Make a 5-minute video presentation on your equity research report, the slides for the video presentation presentation is also required. Points to note: 1. Due date and time, 11:30 PM, Friday, May 21, 2021. You will be required to submit these documents and files separately on the Moodle. 1) The research report with appendix of tables, figures or graphies in one PDF format, which is NOT includes the references, and assignment assessment criteria. This report will be checked on Moodle Turnitin system, any report with a similarity rate higher than 20% will be considered as a plagiarised report and marked as zero for whole assignment. Other files will NOT be checked on Moodle Turnitin system. 2) The references list, and assignment assessment criteria in one PDF file. 3) Presentation video in MP4 format, maximum 5-6 minutes. 4) The Presentation slides in powerpoint or PDF format. 5) The Excel file which includes all of data,tables,figures, graphies or calculations. 2. The report only is limited to 1500-2000 words, not include the tables, graphs and reference. The report must be typed-written using Times New Roman, font size 12 with 1.5 spacing and double spacing between paragraphs. 3. Student must not submit a work that has previously been submitted to another unit/course. All work submitted must be original. Make references to the sources of materials used in your report. The investment report (without references, and assessment criteria) with a similarity rate that exceeds 20% will be considered as a plagiarised report and marked as zero for the whole assignment. 4. It is requied to use Zoom to do the presentation video recording from your PC or ipad. The video recording in powerpoint is not accepted. 5. Late submission penalty: 10% of the available marks per day up to one week. ASSIGNMENT ASSESSMENT CRITERIA BFW3121 (SEMESTER 1, 2021) Task Marks 1. Investment Analysis Detail analysis supported with relevant details and excellent comments. (21-25) Detail analysis but supported with limited details and comments. (17-21) Basic analysis supported with minimal details and poor comments. (11-16) Analysis poorly is done. (0-10) 25% 2. Financial Information & Valuation Detail analysis supported with relevant details and excellent comments. (21-25) Detail analysis but supported with limited details and comments. (17-21) Basic analysis supported with minimal details and poor comments. (11-16) Analysis poorly is done. (0-10) 25% 3. Company Information, Recommendation, Risk Detail analysis supported with relevant details and excellent comments. (8-10) Detail analysis but supported with limited details and comments. (6-7) Basic analysis supported with minimal details and poor comments. (4-5) Analysis poorly is done. (0-3) 10% 3. Report Writing Excellent explanation. Supported with relevant data and details. (17-20) Good explanation. Supported with relevant data and details. (13-16) Basic explanation. Supported with limited or minimal data or details. (9-12) Poor explanation. (0-8) 20% 4. Presentation video and PowerPoint slides Excellent presentation (25-30) Good presentation (18-24) Average presentation (11-17) Poor presentation (0-10) 20% TOTAL UCHI TECHNOLOGIES BERHAD UCHITEC is a Original Design Manufacturer (ODM) specializing in the design, research and development (R&D), and manufacturer of electronic control systems. Their revenue is derived from 3 different categories, of which over the time period observed (2010-2019), more than 80% comes from the “Art-of-living” group, which comprises of electronic control systems for household appliances and professional appliances. The remaining revenue is derived from biotechnology products and others. Biotechnology products make up most of the remaining revenue, which consists of electronic control systems such as high precision weighing scales, centrifuges, and deep freezers. The others category consistently makes up 1% of total revenue. It is noted that while more than 80% of revenue is derived from “Art-of-living” group, over the years, their contribution has decreased, with more revenue gradually being made up of biotech products, indicating that the company is looking to diversify their income. Their revenue is largely situated in Europe, where they derive more than 90% of their revenue. This exposes them to market concentration risk. Over the time period observed, the management has consistently stated in their Management Discussion & Analysis (MD&A) section that they are looking to diversify their income to other regions of the world. This did not happen until 2016, which is observed to be the year they started to branch out their revenue from Europe. Up until then, 99% of their revenue were derived from Europe. In 2019, this figure was 93%, the lowest thus far, down from 99% in 2010. The majority of their income comes from its electronic control modules for coffee machines. Its technology includes the mixed-signal ICs (Integrated Circuits), ASICs (Application Specific Integration Circuits), and software. It supplies these modules and software to coffee machine makers such as Jura (Switzerland), AEG (German), Krups (German), Bosch (German), Siemens (German), and Nestle (Switzerland), all of which focuses on the European market. Their biotech products are supplied to laboratories and instrumentation manufacturers. UCHITEC has 2 major customers as noted in the notes to financial statements. They consistently generate more than 70% of their revenue from Customer A (which is Jura), and around 10% for Customer B. This exposes them to customer concentration risk, as their success is dependent on the success of these 2 customers. UCHITEC and Jura has developed what we may call a symbiotic relationship, as UCHITEC is the sole suppliers of the modules for Jura. As Jura is not a public company, I am not able to find details regarding its financials nor its expansion plans. UCHITEC’s revenue has been growing at a compounded annual growth rate (CAGR) of 5.01% in 2010-2019, while is gross profit has been growing at an CAGR of 5.85%, indicating that UCHITEC might have a pricing power or is able to get their raw materials at a lower cost. The average gross margin was 67.73%. However, this margin has actually been decreasing over the last 5 years. They have also managed to keep their expenses low, as the average expense to gross profit is 34.86%. However, it is noted that these expenses show a general declining trend since 2013, and over the last 3 years of the period observed has been in the low 30s, with 2019 at 28.94%. These numbers are great, as it shows the management has been able to keep their operating costs low even while pushing for improvements in their technology. Their EBIT growth has been growing at a CAGR of 4.55%. This is likely due to the fluctuations in income generated from their investments (I included every other income items under “Other income”, which included their investment income), which they earn from putting their cash in short term deposits. The fluctuations in their “Other gains or losses” account also contributed to the low growth due to making losses on some years. Their net income has been growing, albeit slowly, at CAGR of 4.17%. As you may have observed, their tax expenses are generally very low. This is due to the company being granted pioneer status on several of their products, allowing income derived from those products to be tax exempt for several years. While the tax-exempt period only lasts for 5 years, they were able to renew their pioneer status and will continue to be tax exempt for another 5 years. In 2018, they were also granted another pioneer status for other products which they have developed that has yet to start as of FY2019. As observed in the chairman statement and MD&A, there has been a consistent focus on acquiring and developing talents so that they may deliver innovative high-quality products. It is noted that their net margin is very high at an average of 47%. This is the result of tax savings. In the spreadsheet I calculated something called “Owner’s earnings”, which adds back all depreciation, amortization and other non-cash charges to the net income and subtracts the average annual capital expenditure for the year. In calculating the average annual capital expenditure, I used the data from 2013-2019 as 2011-2012 the capital expenditure was high due to the company building a new building called Uchitecture, which is mainly for their R&D. This capital expenditure cannot be considered to be recurring, hence would make sense to exclude it from the calculations. The owner’s earnings growth is slightly higher than net profit growth at 4.44%, but still below the 5% growth of revenue. However, its margin is slightly lower than net margin at 46.65%. The depreciation charges as