Income statement, Balance Sheet, Cash flow statement - Which one is the most important?

One friend told me that somebody said balance sheet is more important than income statement in the long term. However, personally, I believe all of them (Income statement, Balance sheet and cash flow statement) are equally important for us to evaluate the intrinsic value of a particular company. In this post, I am going to explain the function of these three statements for us, as an investor, to figure out the value of a company.

Income Statement
Income statement shows the profitability and efficiency of a particular company. For example, from income statement, we can answer some critical questions, namely, how much will be earned from every 100 dollar sales in this particular company? Is the fix cost reasonable or too high? How about the profit margin of the company products?

GAS MALAYSIA BERHAD (GASMSIA) : Little Analysis and Insight

Based on the Prospectus notes of GAS MALAYSIA BERHAD (GASMSIA) from Bursa Malaysia,
page 159: Historical audited consolidated Financial information: profit after tax (PAT) in 2011 is around RM229million.

Next, go to page 187: 12.4 Proforma consolidated balance sheets: Proforma II - After proforma I and IPO: total number of share is 1,284million.

Based on these two informations, we can get EPS of GASMSIA = 17.83sen.

Since the IPO price for retailer is RM2.20, PE = 2.2/0.1783 = 12.34.

NTA = RM0.71.

Compared to KENCANA PETROLEUM BERHAD PE, GASMSIA looks more attractive.

However, can GASMSIA maintains or even grow its EPS in future? More investigation and time are needed.

Human Weakness in Stock Market Investment: The grass is always greener on the other side

The grass is always greener on the other side - this idea is as normal as any natural law or phenomena in this word. For example, most of us always admire other people around us, don't us? When we have motorcycles, we admire those have cars; when we have cars, we admire those have helicopters; when we have helicopters, most likely, we will, once again, admire those have private aeroplanes. However, what we will see sometimes is, those have private aeroplanes do enjoy driving motorcycles, isn't it? However, what I am going to tell you is that there is never wrong or right in this world, but suitable or not. 

HeveaBoard Berhad (Hevea, 5095) : 2011 Performance Review

Since the annual report haven't come out, this review only based on the last four quarter reports of HeveaBoard (Hevea, 5095).
Firstly, let's have a look at the activities from the four quarters as follows:

Quarter 1, 2011
"The lower PBT was due mainly to the lower USD exchange to Ringgit as more than 80% of the Group’s revenues were derived from the export market and transacted in US Dollars that had resulted in lower revenues and profit margins.
The production volume for particleboard was lowered due to short supply of wood material caused by the severe flood encountered in the early part of the year and prolong rainy season.
Prospect for the current financial yearThe Group expects the particleboard prices to improve further and RTA furniture to be stable with
increasing demand."

OPCOM (0035): RM82million variation order from TM Berhad: Review

Recently, OPCOM announces that it has secured RM82million variation order from TM Berhad which is expiring on 19 April 2013. In other words, the period of this contract is around four quarters or approximate to one year.

Based on previous four consecutive quarters' revenues and profits:
2011 Q3: R = RM33M,   PAT=RM4.4M, EPS = 3.42sen
2011 Q2: R = RM22.6M PAT=RM3.8M, EPS = 2.92sen
2011 Q1: R = RM33M    PAT=RM5.4M, EPS = 4.21sen
2010 Q4: R = RM34.2M PAT=RM4.8M, EPS = 3.73sen

(note: R = revenue, PAT = Profits after Tax, EPS = Earning per share, Q = quarter;)

HeveaBoard Berhad (Hevea, 5095) : The Potential of China Market and its Operation Segments

In the previous post, we have study some background information of HeveaBoard Berhad (Hevea, 5095). But two questions haven't been discussed, that are:
1. How are the profits of Particleboard manufacturing sector and Ready to Assemble (“RTA”) furniture sector, and which one has better profitability?
2. Is it significant for HeveaBoard to export 50% of its particle board to China market? These two questions will be discussed further in the coming post.

Therefore, in this post, we will step-by-step discuss two of these questions?

1. From the fourth quarter quarter report of Hevea, Segmental Reporting, as stated below:

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Finally, I have used P1 for more than 12 months. Since I have used autopay for 12 months, one month free is given in the 13th month in terms of "rebates & discounts" in my 13th month statement.
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