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Heartland Boy | www.heartlandboy.

com

Company

1) History of Consistently Increasing Revenue and Profits

Year 2012 2013 2014 2015


Revenue (S$ mil)
Net Profit (S$ mil)

2) Conservative Level of Debt (Net Long-Term Debt < 3 times of Net Profit)
Yr 2015
Cash & Cash Equivalent
Long Term Debt
Net-Long Term Debt 0
Net-Long Term Debt over Net Profit #DIV/0!

3) Consistent and High Return on Equity (ROE) over 12%

Year 2012 2013 2014 2015


ROE (%)

4) Share Price is Less Than Intrinsic Price


Total Outstanding Shares
Beta (Obtain from Reuters)
Discount Rate #N/A

Earning Per Share Year 2005


Earning Per Share Year 2015
Long-Term Growth Rate #DIV/0!

Year 2016 2017 2018 2019 2020


Net Operating Cashflow (S$ mil) #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Net Present Value #N/A

Intrinsic Price #N/A


Current Share Price

5) Sustainable Competitive Advantage


[Impute Y or N]
Market Leadership
Economics of Scale
Strong Brand Name
Patents/Technological Know-how
High Switching Costs

6) Future Growth Drivers


[Impute Y or N]
New Product Launch
Expansion of production facilities
New Market Entry
10
9
8
7
6
5 Revenue (S$ mil)
Net Profit) Net Profit (S$ mil)
4
3
2
1
0
1 2 3 4

Beta Discount Rate


0.01 5.0%
0.8 5.0%
1 6.0%
1.1 6.8%
1.2 7.0%
1.3 7.9%
1.4 8.0%
1.5 8.9%
1.6 9.0%

2021 2022 2023 2024 2025


#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Heartland Boy | www.heartlandboy.com

Company Micro-Mechanics

1) History of Consistently Increasing Revenue and Profits

Year 2012 2013 2014 2015


Revenue (S$ mil) 38.8 39.2 43.9 52.2
Net Profit (S$ mil) 4.2 5.1 7.8 12

2) Conservative Level of Debt (Net Long-Term Debt < 3 times of Net Profit)
Yr 2015
Cash & Cash Equivalent 13.5
Long Term Debt 0
Net-Long Term Debt -13.5
Net-Long Term Debt over Net Profit -1.125

3) Consistent and High Return on Equity (ROE) over 12%

Year 2012 2013 2014 2015


ROE (%) 11.30% 13.50% 19.00% 24.10%

4) Share Price is Less Than Intrinsic Price


Total Outstanding Shares 139,031,881
Beta (Obtain from Reuters) 0.09
Discount Rate 5.00%

Earning Per Share Year 2005 3.929


Earning Per Share Year 2015 8.646
Long-Term Growth Rate 8.21%

Year 2016 2017 2018 2019 2020


Net Operating Cashflow (S$ mil) 14.1 15.3 16.5 17.9 19.3
Net Present Value 162.04

Intrinsic Price 1.17


Current Share Price 0.79

5) Sustainable Competitive Advantage


[Impute Y or N]
Market Leadership N
Economics of Scale N
Strong Brand Name Y
Patents/Technological Know-how Y
High Switching Costs Y

6) Future Growth Drivers


[Impute Y or N]
New Product Launch N
Expansion of production facilities Y
New Market Entry N
60

50

40

30 Revenue (S$ mil)


Net Profit (S$ mil)

20

10

0
1 2 3 4

Beta Discount Rate


0.01 5.00%
0.8 5.00%
1 6.00%
1.1 6.80%
1.2 7.00%
1.3 7.90%
1.4 8.00%
1.5 8.90%
1.6 9%

2021 2022 2023 2024 2025


20.9 22.6 24.5 26.5 28.7