KLCI Stock - AJIYA / 7609 - 2010 Quarter 1

Market Cap : 69223821*2.15 = 148,831,215.15 (Small)
NTA per share : 186586/69224 = 2.7 (Increased)
P/BV : 2.15/2.7 = 0.7963 (Undervalue)
Forecast P/E now : (2.15-0.06)/0.3427 = 6.1 (Low)
ROE : 10.42% (Moderate)
DY : 0.06/2.15*100 = 2.79% (Low)
Fixed Asset Turnover(3 year) : (1.1049+1.2369+1.2408)/3 = 1.1942 (High)
Liquidity Ratio : 178781/49131 = 3.6389 (Strong)
Receivables Collection Period : (80036+81422)/2/(318876/365) = 92 days (Acceptable)
My Target Price : 2.74+0.06 = 2.8 (PE 8, EPS 0.3427, DPS 0.06)
My Decision : BUY
My Comment : Margin improved, navps increasing, debt decreased, positive fcf, company cash increased
Technical Support Price : 2.05
Risk Rating : LOW
OSK Target Price : 2.59 (26 Apr 2010)

My study based on 2010 Quarter 1 report (number in '000):-
- The Group achieved a 8% higher turnover compared to preceding year corresponding quarter due to the recovery from previous weak market
- The Group recorded a lower profit before tax compared to immediate preceding quarter due to lower turnover for the current quarter
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0816*4 = 0.3264+0.0163 = 0.3427 (5% grow from 0.3264 due to recovery from previous weak market), estimate PE on current price 2.15 = 6.1(DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.312(2% drop from 0.3184), estimate PE on current price 2.14 = 6.67(DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.28, estimate highest/lowest PE = 6.39/5.18 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.23, estimate highest/lowest PE = 6.52/5.22 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.26, estimate highest/lowest PE = 5.15/4.46 (DPS 0.06)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.26, estimate highest/lowest PE = 4.69/3.65 (DPS 0.06)

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