KLCI Stock - MAHSING / 8583 - 2010 Quarter 2

Market Cap : 831568839*1.82 = 1,513,455,286.98 (Large)
NTA per share : 858032/821061 = 1.05
P/BV : 1.82/1.05 = 1.7333
Forecast P/E now : (1.82-0.065)/0.1562 = 11.24 (Moderate)
ROE : 12.69% (Moderate)
DY : 0.065/1.82*100 = 3.57% (Low)
Fixed Asset Turnover(3 year) : (0.5591+0.5258+0.5321)/3 = 0.539 (Low)
Liquidity Ratio : 1514644/441956 = 3.4271 (High)
Receivables Collection Period : (345989+314914)/2/(911376/365) = 132 days
My Target Price : 1.87+0.065 = 1.94 (PE 12, EPS 0.1562, DPS 0.065)
My Decision : BUY
My Comment : Revenue and profit increased, cash flow back to higher cash level, above moderate debt and increased, navps decreased, good property portfolio
Technical Support Price : 1.8, 1.7
Risk Rating : MODERATE

My notes based on 2010 Quarter 1 report (number in '000):

- The Group recorded 66% improvement for revenue and 25% improvement for profit after tax and minority interest (PATMI) over the corresponding period in the previous year. The current quarter revenue and PATMI represents 73% and 27% improvement respectively over same quarter last year

- Projects that contribute to solid revenue and profit for the current financial period include Southgate Commercial Centre, StarParc Point , i-Parc@Bukit Jelutong , Perdana Residence 2 , Aman Perdana, Hijauan Residence and Kemuning Residence in Klang Valley; Residence@Southbay in Penang and Sierra Perdana , Sri Pulai Perdana 2 , and Austin Perdana in Johor Bahru. The Plastics division also recorded improved revenue and profit over the corresponding period in the previous year

- The Group recorded 15% improvement of profit before tax in the current quarter over the immediate preceding quarter. The better performance is attributed to more projects contributing in the current quarter

- Excluding the 5 projects already completed, the Group currently has 25 projects in its property portfolio. 15 of these are ongoing active projects and 10 are new projects in the planning stage

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0355*4*1.1 = 0.1562, estimate PE on current price 1.82 = 11.24(DPS 0.065)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034*4*1.1 = 0.1496, estimate highest/lowest PE = 12.13/9.99 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0388*4 = 0.1552, estimate highest/lowest PE = 12.6/10.53 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0373*4 = 0.1492, estimate highest/lowest PE = 12.73/10.72 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0366*4 = 0.1464, estimate highest/lowest PE = 13.66/11.61 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.036*4 = 0.144, estimate highest/lowest PE = 13.68/11.39 (DPS 0.08)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0271*4 = 0.1084, estimate highest/lowest PE = 16.33/13.28 (DPS 0.08)

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