KLCI Stock - TANJONG / 2267 - 2010 Quarter 3

OSK Target Price: 18.6
My Target Price: 1.72+0.9=18.1 (PE 10, EPS 1.72, DPS 0.9),
My decison: NOT BUY (unless price <=17)
Reason: Overvalue but dividend rate around 5%

My study based on 2010 Quarter 3 report (number in '000):-
- Power Generation revenue decreased due to a reduction in energy billings by Malaysian power plants, offset by increased revenue from overseas power plants. Gaming revenue increased due to seven additional draws
- Group profit before taxation for the current quarter increased due to a higher contribution from overseas power plants, lower corporate and business development costs and a RM55 million provision for windfall profit levy in the corresponding quarter
- In the Leisure segment, improved attendances and spending in Tropical Islands together with the full period contribution from TGV Cinemas Sdn Bhd, resulted in increase in revenue
- Net investment income is lower mainly due to the recognition, in the corresponding period, of investment gains from the disposal of the Group’s interest in Arqiva
- Estimate next 4Q eps after 2010 Q3 result announced = 0.43*4=1.72, estimate PE on current price 17.74 = 9.79(DPS 0.9)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.43*4=1.72, estimate highest/lowest PE = 9.26/8.2 (DPS 0.9)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.43*4=1.72, estimate highest/lowest PE = 8.8/7.21 (DPS 0.9)
- Estimate next 4Q eps after 2009 Q4 result announced = 1.15, estimate highest/lowest PE = 12.09/10.43 (DPS 0.9)