KLCI Stock - AJIYA / 7609 - 2010 Quarter 2

Market Cap : 69223821*2 = 138,447,642 (Small)
NTA per share : 189831/69224 = 2.74 (Increased)
P/BV : 2/2.7 = 0.7963 (Undervalue)
Forecast P/E now : (2-0.06)/0.3427 = 5.66 (Low)
ROE : 11.12% (Moderate)
DY : 0.06/2*100 = 3% (Low)
Fixed Asset Turnover(3 year) : (1.1047+1.2306+1.12)/3 = 1.1518 (High)
Liquidity Ratio : 184095/50300 = 3.6599 (Strong)
Receivables Collection Period : (81803+85678)/2/(326053/365) = 93 days (Acceptable)
My Target Price : 2.74+0.06 = 2.8 (PE 8, EPS 0.3427, DPS 0.06)
My Decision : BUY
My Comment : Revenue and profit increasing, good cash flow, low debt and decreasing, navps increasing
Technical Support Price : 1.8
Risk Rating : MODERATE
OSK Target Price : 2.59 (09 July 10)

My notes based on 2010 Quarter 2 report (number in '000):-
- The Group achieved a 9% higher turnover compared to preceding year corresponding quarter due to better market sentiment
- The Group recorded a lower profit before tax compared to immediate preceding quarter due to marginal due to the higher turnover contribution of lower profit margin products for the current quarter
- Estimate next 4Q eps after 2010 Q2 result announced = 0.3427, estimate PE on current price 2 = 5.66(DPS 0.06)
- 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 highest/lowest PE = 6.16/4.99 (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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