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Saturday, January 29, 2011

KLCI Stock - MYEG / 0138 - 2011 Quarter 1

Company Info
Market Capital (Capital Size)489,856,565 (Small)
Par ValueRM 0.10

My Analysis
Forecast P/E now(0.815-0.0050)/0.0352 = 23.01 (High)
Target Price0.70+0.0050 = 0.71 (PE 20.0, EPS 0.0352, DPS 0.0050)
DecisionNOT BUY
Revenue decreased but still higher than preceding year corresponding quarter, eps largely decreased and lower than preceding year corresponding quarter, got free and positive net cash flow, strong liquidity ratio, very low liquidity ratio, higher receivables, invest into tax monitoring system
First Support Price0.75
Second Support Price0.73
Risk RatingHIGH

Accounting Ratio
Return on Equity23.48%
Dividend Yield1.35%
Profit Margin18.36%
Tax Rate1.37%
Asset Turnover0.6428
Net Asset Value Per Share0.15
Net Tangible Asset per share0.13
Price/Net Tangible Asset Per Share5.69
Cash Per Share0.02
Liquidity Current Ratio4.815
Liquidity Quick Ratio4.815
Liquidity Cash Ratio1.4838
Gearing Debt to Equity Ratio0.1405
Gearing Debt to Asset Ratio0.1232
Working capital per thousand Ringgit sale45.5%
Days to sell the inventory-
Days to collect the receivables145
Days to pay the payables45

My notes based on 2011 quarter 1 report (number in '000):-
- The Group posted Revenue and Profit after Taxation (“PAT”) of RM15.47 million and RM2.80 million respectively for the first financial quarter (“Q1 FY2011”) and year to date period ended 30 September 2010 (“3M FY2011”) as compared to RM13.60 million and RM4.47 million respectively in the corresponding quarter (“Q1 FY2010”) and year to date period ended 30 September 2009 (“3M FY2010”)

- The increase of RM1.87 million (13.8%) in Revenue is primarily attributable to the encouraging growth for our online renewal of insurance, road tax transactions and its related services

- However, PAT decreased by RM1.67 million (36.9%) primarily due to:-
i) higher marketing expenses due to MYEG’s 2010 FIFA World Cup advertising campaign to further enhance MYEG’s brand name
ii) an increase in Direct Expenses consistent with the increase in revenue

- For the Quarter under review, the Group’s revenue and PAT decreased by RM1.63 million and RM3.02 million respectively as compared to Q4 FY2010. The decrease in revenue and PAT is primarily attributable to seasonality factor where demand for JPJ new licences decreased in Q1 FY2011. In addition, PAT was also affected by an increase in marketing expenses due to the advertising campaign during the 2010 FIFA World Cup

- Estimate next 4Q eps after 2011 Q1 result announced = 0.032*1.1 = 0.0352, estimate PE on current price 0.815 = 23.01(DPS 0.005)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0097*4*1.1 = 0.0427, estimate highest/lowest PE = 19.32/16.16 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0088*4 = 0.0352, estimate highest/lowest PE = 24.57/14.91 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 20.57/12.66 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0074*4 = 0.0296, estimate highest/lowest PE = 18.44/13.88 (DPS 0.0092)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 19.63/14.37 (DPS 0.01835)

MYEG latest news (English)

MYEG latest news (Chinese)

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