MUHIBAH / 5703 - 2009 Q3

S&P Research TP: 1.3 (01 Dec 09)
My decision: NOT BUY
Reason: DE very high and profit unstable

My study based on 2009 Q3 report (number in '000):
- Turn earn to loss, but revenue still high, mainly costs overrun suffered in YemenLNG jetty project caused by higher cost at final stage of completion and prolongation cost incurred underdifficult weather condition
- Got highest FCF 235914
- DE was increasing to 3.5688, very high
- Increase borrowing but receivables also hit highest amount
- 2008 highest price = 4.2 on 2008-01-11 after 2007 Q3 result announced, the result achieved EPS 0.457 and accumulative EPS 0.1284, estimate EPS for 2008 = 0.2, estimate highest PE = 21
- 2008 lowest price = 0.685 on 2008-10-28 after 2008 Q2 result announced, the result achieved EPS 0.0535 and accumulative EPS 0.1052, estimate EPS still 0.2, thus 2008 lowest PE = 3.43. The reason so low because economic crisis.
- 2009 highest price = 1.63 on 2009-06-12 after 2009 Q1 result announced, the result achieved profit EPS = 0.0389, estimate 2009 EPS = 0.16, estimate 2009 highest PE = 10.19
- 2009 lowest price = 0.655 on 2009-03-12 after 2008 Q4 result announced, the result got a big loss, eps = -0.0882 and accumulative EPS 0.0556