KLCI Stock - KELADI / 6769 - 2010 Quarter 4

My Target Price: 0.14+0.01=0.15 (PE 9, EPS 0.0155, DPS 0.01)
My Decision: NOT BUY (unless price < RM0.15) My Comment: Revenue dropped year-to-date, good cash flow, 6% dividend rate base on RM0.165 My opinion based on 2010 Q4 report (number in '000): - The decrease in revenue and profit before tax were mainly due to lower contribution from the property development activities and decrease in sales of FFB. The average net price per ton of FFB for current financial year was RM460 compared with the average net price per ton of FFB of RM600 in previous financial year - Compare to preceding quarter, the significant decrease in the profit before tax is due to lower progress revenue recognition from property development activities. The Group had completed and handover Taman Lagenda Phase 1 & 2 in preceding quarter, whilst revenue from Taman Lagenda Phase 5 is at the early stages of development and no progress billings were made during the current quarter - Launched 297 units of medium cost houses (Taman Lagenda Phase 5) in January 2010 - Estimate next 4Q eps after 2010 Q4 result announced = 0.0155 (13% drop from 0.0178), estimate PE on current price 0.165 = 10(DPS 0.01) - Estimate next 4Q eps after 2010 Q3 result announced = (0.0218+0.0289+0.019)/3 = 0.0232, estimate highest/lowest PE = 6.9/5.6 (DPS 0.015) - Estimate next 4Q eps after 2010 Q2 result announced = 0.0031*4 = 0.0124, estimate highest/lowest PE = 12.5/10.48 (DPS 0.015) - Estimate next 4Q eps after 2010 Q1 result announced = 0.0042*4 = 0.0168, estimate highest/lowest PE = 9.52/7.74 (DPS 0.015) - Estimate next 4Q eps after 2009 Q4 result announced = 0.0031*4 = 0.0124, estimate highest/lowest PE = 14.11/8.06 (DPS 0.015) KELADI Latest news from The Star