KLCI Stock - EPIC / 8265 - 2010 Quarter 3

Company Info

Market Capital (Capital Size)	408,503,194 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.41-0.06)/0.3 = 7.83 (Moderate)
Target Price	2.55+0.06 = 2.61 (PE 8.5, EPS 0.3, DPS 0.06)
Decision	BUY
Comment	Revenue second consecutive quarter increasing and highest since FY06Q4, eps decreased but still higher than preceding year corresponding quarter, free cash flow and net cash flow increasing, profit margin maintaining high, high liquidity ratio, low gearing ratio, all accounting period are acceptable, oil & gas price increasing
First Support Price	2.24
Second Support Price	2.0
Risk Rating	MODERATE

Research House

OSK Target Price

3.09 (2010-11-09)

Accounting Ratio

Return on Equity	13.11%
Dividend Yield	2.07%
Profit Margin	28.61%
Tax Rate	32.81%
Asset Turnover	0.4962
Net Asset Value Per Share	2.1
Net Tangible Asset per share	2.07
Price/Net Tangible Asset Per Share	1.11
Cash Per Share	0.59
Liquidity Current Ratio	3.8812
Liquidity Quick Ratio	3.7333
Liquidity Cash Ratio	2.099
Gearing Debt to Equity Ratio	0.2751
Gearing Debt to Asset Ratio	0.2066
Working capital per thousand Ringgit sale	59.1%
Days to sell the inventory	15
Days to collect the receivables	117
Days to pay the payables	89

My notes based on 2010 quarter 3 report (number in '000):-
- The Group achieved revenue of RM72.85 million in the third quarter under review, an increase of RM29.10 million or 67% compared to RM43.75 million reported in the same quarter in the preceding year. The Group recorded profit before tax of RM20.84 million, an increase of 45% compared to RM14.36 million achieved in the same quarter in the preceding year

- For the nine months ended 30 September 2010, the Group generated revenue of RM181.83 million, an increase of RM47.91 million or 36% compared to RM133.92 million achieved in the same period in the preceding year. The Group recorded profit before tax of RM57.27 million, increase by 36% compared to RM42.19 million achieved in the same period in the preceding year

- The increase in revenue and profit before tax was mainly due to increase in port operations and oil and gas activities

- During the current quarter under review, the Group recorded profit before tax of RM20.84 million, a decrease of 3% as compared to RM21.49 million reported in the preceding quarter due to provisions made during the quarter

- Estimate next 4Q eps after 2010 Q3 result announced = 0.075*4 = 0.3, estimate PE on current price 2.41 = 7.83(DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2682*1.1 = 0.295(0.2682 is recent 4Q cum_eps and estimate 10% increase), estimate highest/lowest PE = 8.68/6.34 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2747(still within expectation), estimate highest/lowest PE = 6.92/5.28 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2747(10% grow from 0.2497), estimate highest/lowest PE = 6.01/5.39 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2327, estimate highest/lowest PE = 6.68/5.82 (DPS 0.085)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.2221, estimate highest/lowest PE = 7.18/6.33 (DPS 0.085)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1868, estimate highest/lowest PE = 8.94/6.48 (DPS 0.09)

EPIC latest news (English)

EPIC latest news (Chinese)