KLCI Stock - TONGHER / 5010 - 2010 Quarter 1

Market Cap : 127430000*1.76 = 224,276,800 (Small)
NTA per share : 283752/127406 = 2.23
P/BV : 1.76/2.23 = 0.7892
Forecast P/E now : (1.76-0.05)/0.1388 = 12.32 (High)
ROE : 3.98% (Low)
DY : 0.05/1.76*100 = 2.84% (Low)
Fixed Asset Turnover(3 year) : (0.5794+1.0434+1.2188)/3 = 0.9472 (Moderate)
Liquidity Ratio : 260764/39299 = 6.6354 (Strong)
Receivables Collection Period : (21331+24015)/2/(206156/365) = 40 days (Acceptable)
My Target Price : NOT BUY unless ROE, revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue increasing but profit still low, good cash flow, remain low debt, navps increasing, strong cash
Technical Support Price : 1.7
Risk Rating : MODERATE (due to result not that good but PE consider high; healthy financial)

My notes based on 2010 Q1 report (number in '000):
- The higher profit before income tax in this reporting quarter as compared to the results in corresponding period last year are due to lower cost of raw materials
- The higher profit before income tax in this reporting quarter as compared to the results in preceding quarter are due to higher cost of raw materials and cost control
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0347(average of recent 3Q)*4 = 0.1388, estimate PE on current price 1.76 = 12.32(DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0469*4 = 0.1876, estimate highest/lowest PE = 10.61/8.8 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0278*4 = 0.1112, estimate highest/lowest PE = 16.19/14.39 (DPS 0.05)

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