KLCI Stock - A&M / 5959 - 2010 Quarter 3

Par Value

:

0.50

My Forecast P/E now	:	0.51/0.0438 = 11.64 (High)
My Target Price	:	Not interested unless revenue and profit increase more
My Decision	:	NOT BUY
My Comment	:	Revenue decreased, profit increasing, better cash, good cash flow, better liquidity, better gearing, directors acquired shares @ ~RM0.46 to ~RM0.6
Technical Support Price	:	0.47
Risk Rating	:	HIGH

Latest Market Capital (Capital Size)	186,182,538 (Small)
Return on Equity	2.88%
Dividend Yield	-
Profit Margin	16.75%
Asset Turnover	0.217
Tax Rate	24.25%
Net Asset Value Per Share	1.27
Net Tangible Asset per share	1.21
Price/Net Tangible Asset Per Share	0.46
Cash Per Share	0.17
Liquidity Current Ratio	4.1528
Liquidity Quick Ratio	3.4486
Liquidity Cash Ratio	0.6346
Gearing Debt to Equity Ratio	0.3198
Gearing Debt to Asset Ratio	0.2373
Average working capital per thousand Ringgit sale	227.3%
Average days to sell the inventory	201
Average days to collect the receivables	112

My notes based on 2010 quarter 3 report (number in '000):
- The Group achieved RM100.535 million revenue and RM11.891 million profit before taxation and minority interest for the current financial period ended 30 September 2010 as compared to RM107.636 million revenue and RM13.880 million profit before taxation and minority interests for the corresponding financial year of the preceding year

- This represented a decrease of revenue and profit before taxation and minority interest of RM7.101 million and RM1.989 million respectively of same period last financial year

- The Group reported RM4.904 million profit before taxation and minority interest for the current quarter as compared to RM3.277 million profit before taxation and minority interest of the preceding quarter

- The difference was mainly due to the completion of certain development projects in the current quarter

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0417*1.05 = 0.0438, estimate PE on current price 0.51 = 11.64
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0417*1.1 = 0.0459(0.0417 is recent 4Q cum_eps), estimate highest/lowest PE = 13.73/9.91
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0376*1.05 = 0.0395(5% increase from 0.0376), estimate highest/lowest PE = 15.32/12.41
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0376, estimate highest/lowest PE = 20.35/15.43
- Estimate 2009 eps after 2009 Q3 result announced = 0.0297+(0.041+0.0301)/2 = 0.0475, estimate highest/lowest PE = 17.79/11.05
- Estimate 2009 eps after 2009 Q2 result announced = 0.0518+(0.0089-0.0035) = 0.0572, estimate highest/lowest PE = 13.99/8.22
- Estimate 2009 eps after 2009 Q1 result announced = 0.0518+(0.0015-0.0007) = 0.0526, estimate highest/lowest PE = 17.02/7.41
- Estimate 2009 eps after 2008 Q4 result announced = 0.0518, estimate highest/lowest PE = 9.27/5.02

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