KLCI Stock - MITRA / 9571 - 2010 Quarter 3

Company Info

Market Capital (Capital Size)	154,867,013 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.21-0.1)/0.28 = 3.96 (Moderate)
Target Price	2.24+0.1 = 2.34 (PE 8.0, EPS 0.28, DPS 0.1)
Decision	BUY
Comment	Revenue decreased but higher than preceding year corresponding quarter, profit slight decreased, also lower than preceding year corresponding quarter, free cash flow increasing but net cash flow decreased , third consecutive quarter profit margin increasing, better liquidity ratio at moderate level now except cash very low, better gearing ratio at above moderate level now, all collection period are acceptable from historical comparison
First Support Price	1.1
Second Support Price	1.0
Risk Rating	HIGH

Accounting Ratio

Return on Equity	19.74%
Dividend Yield	8.26%
Profit Margin	26.59%
Tax Rate	25.85%
Asset Turnover	0.8148
Net Asset Value Per Share	2.36
Net Tangible Asset per share	2.34
Price/Net Tangible Asset Per Share	0.49
Cash Per Share	0.03
Liquidity Current Ratio	2.3945
Liquidity Quick Ratio	0.7362
Liquidity Cash Ratio	0.0299
Gearing Debt to Equity Ratio	0.6479
Gearing Debt to Asset Ratio	0.3765
Working capital per thousand Ringgit sale	46.8%
Days to sell the inventory	258
Days to collect the receivables	86
Days to pay the payables	88

My notes based on 2010 quarter 3 report (number in '000):-
- For this current quarter under review, the Group's revenue has increased by 7% as compared to a revenue in the preceding year corresponding quarter. The increase in revenue is mainly derived from Group's construction division

- Nevertheless, the Group has recorded lower profit before tax in the current quarter as compared to a profit in the preceding year corresponding quarter

- The Group generated lower revenue and profit before tax for the current quarter under review as compared to the preceding quarter due to lower revenue and profits recognition from Group's property development and manufacturing divisions

- Estimate next 4Q eps after 2010 Q3 result announced = 0.28, estimate PE on current price 1.21 = 3.96(DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2*0.7*2 = 0.28, estimate highest/lowest PE = 3.25/3 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.12(average of 0.03 per quarter), estimate highest/lowest PE = 10.5/7.5 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.08(average of 0.02 per quarter if no new big project secure for construction division), estimate highest/lowest PE = 15.13/7.63 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.08, estimate highest/lowest PE = 9/7
- Estimate next 4Q eps after 2009 Q2 result announced = 0.08, estimate highest/lowest PE = 7.88/6.63
- Estimate next 4Q eps after 2009 Q1 result announced = 0.08, estimate highest/lowest PE = 7.44/5.38

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