KLCI Stock - P&O / 6009 - 2010 Quarter 4

PACIFIC & ORIENT BERHAD

Company Description

PACIFIC & ORIENT BERHAD is a Malaysia-based investment holding company. The Company is also engaged in the provision of management services. The Company has four segments: insurance, information technology, investment holding, and money lending. Other segments include distribution of consumer goods, provision of sales and administrative services, and provision of management and privilege card programme services. The Company's subsidiaries include Pacific and Orient Insurance Co. Berhad, engaged in general insurance business; P and O Technologies Sdn. Bhd., offers information technology services and equipments; Pacific and Orient Distribution Sdn. Bhd., is engaged in distribution of consumer goods and provision of sales and administrative services; P and O Capital Sdn. Bhd., is engaged in money lending, and P and O Technologies Sdn. Bhd., deals in computer hardware, software and systems.

Company Info

Listing Date	1995-05-18
Market Capital (Capital Size)	213,934,740 (Small)
Par Value	RM 0.50
Board	Main
Sector	Finance
Major Industry	Underwriting of General Insurance
Sub Industry	Information Technology Related Services
Website	http://www.pacific-orient.com/

My Analysis

Forecast P/E now	0.87/0.1 = 8.70 (High)
Target Price	0.1*8.0 = 0.80 (PE 8.0, EPS 0.1)
Decision	NOT BUY
Comment	Revenue increased and higher than preceding year corresponding quarter, eps increased and higher than preceding year corresponding quarter, neither got free nor positive net cash flow, negative cash flow at financial quarter end, liquidity ratio largely increased, gearing ratio largely decreased
First Support Price	0.78
Second Support Price	0.6
Risk Rating	HIGH

Accounting Ratio

Return on Equity	11.91%
Dividend Yield	-
Profit Margin	22.72%
Tax Rate	56.83%
Asset Turnover	0.6258
Net Asset Value Per Share	1.61
Net Tangible Asset per share	1.59
Price/Net Tangible Asset Per Share	0.49
Cash Per Share	0.06
Liquidity Current Ratio	0.8406
Liquidity Quick Ratio	0.8264
Liquidity Cash Ratio	0.0759
Gearing Debt to Equity Ratio	3.2811
Gearing Debt to Asset Ratio	0.7664
Working capital per thousand Ringgit sale	-2.8%
Days to sell the inventory	1
Days to collect the receivables	49
Days to pay the payables	28

My notes based on 2010 quarter 3 report (number in '000):-
- Group revenue was RM118,309,000 compared to RM105,831,000 in the corresponding quarter of the last financial year. The increase was mainly attributable to higher gross premium recorded by the insurance subsidiary. Profit before tax of RM26,882,000 was reported compared to pre-tax loss of RM480,000 in the corresponding quarter of the last financial year. This was mainly attributable to lower net claims incurred of RM42,531,000 as compared to RM64,176,000 in the corresponding quarter of the last financial year, recorded at the insurance subsidiary in the current quarter

- Group revenue of RM118,309,000 was higher than the RM109,701,000 reported in the preceding quarter. This was mainly attributable to higher gross premium recorded by the insurance subsidiary. Profit before tax of RM26,882,000 was higher compared to the pre-tax profit of RM15,395,000 in the preceding quarter. This was mainly attributable to lower net claims incurred of RM42,531,000 as compared to RM48,003,000 in the preceding quarter, recorded at the insurance subsidiary

- Estimate next 4Q eps after 2010 Q4 result announced = 0.05*4/2 = 0.1(ROE 3.5% per quarter), estimate PE on current price 5.38 = 16.06(DPS 0.32)

P&O latest news (English)

P&O latest news (Chinese)

Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2010-11-30	2010	4	N/A	N/A	-	6.50%	11.91%	118309	478358	26882	42261	11605	21260	0.1010	0.1917	764389	585841	-	178548	7898	424	9642	12357	7474	17116	4759	114945	110889	89082	2010-09-30	22.72%	56.83%	0.6258	4.0423	1.61	1.59	0.49	0.06	0.8406	0.8264	0.0759	3.2811	0.7664	-2.8%	1	49	28
2010-08-20	2010	3	1.28	0.775	-	6.88%	6.00%	109701	360049	15395	15379	11072	9655	0.0992	0.0881	870090	709091	-	160999	5586	545	10786	12360	5041	15827	3467	111567	109558	137227	2010-06-30	14.03%	28.08%	0.5354	-	1.47	1.44	0.85	0.07	0.368	0.3601	0.0387	4.4043	0.815	-26.8%	1	50	115
2010-05-25	2010	2	1.29	0.585	-	2.23%	0.97%	134834	250348	5228	16	3247	1417	0.0299	0.0131	853447	707900	-	145547	4207	484	11430	12361	3723	15153	2792	108655	108554	132559	2010-03-31	3.88%	37.89%	0.5224	-	1.34	1.32	0.92	0.07	0.5981	0.5785	0.0931	4.8637	0.8295	-7.7%	1	34	28
2010-02-24	2010	1	1.57	1.14	-	15.17%	15.17%	115514	115514	27495	27495	21352	21352	0.1969	0.1969	820677	679899	-	140778	3000	80	8807	12374	2920	11727	647	108452	108452	125804	2009-12-31	23.80%	-	0.515	-	1.3	1.27	0.91	0.11	0.7451	0.721	0.1625	4.8296	0.8285	-4.3%	1	34	14
2009-11-26	2009	4	1.2	1.04	-	2.82%	9.15%	105831	392494	480	25581	4613	14947	0.0429	0.1408	792253	628908	-	163345	4242	1388	1693	13541	2854	1161	12380	107526	106168	116128	2009-09-30	0.45%	-	0.4954	7.6712	1.54	1.51	0.72	0.12	0.6675	0.6425	0.1783	3.8502	0.7938	-6.1%	2	31	18
2009-08-26	2009	3	1.12	0.97	-	15.41%	11.73%	89632	286663	34589	26061	25697	19560	0.2428	0.1850	771295	604509	-	166786	5825	1116	486	13542	4709	4223	9319	105830	105716	111121	2009-06-30	38.59%	25.71%	0.4991	-	1.58	1.55	0.68	0.12	0.627	0.5998	0.1691	3.6245	0.7838	-7.3%	2	31	17
2009-05-29	2009	2	1.07	0.9	-	1.80%	4.40%	111637	197031	3584	8528	2510	6137	0.0238	0.0581	743172	603542	-	139630	2634	267	1088	13541	2367	1279	12262	105323	105658	106376	2009-03-31	3.21%	29.97%	0.5062	-	1.32	1.29	0.78	0.13	0.6422	0.6144	0.1677	4.3224	0.8121	-7.5%	2	34	19
2009-02-13	2009	1	1.03	0.92	-	10.90%	10.90%	85394	85394	20771	20771	15141	15141	0.1428	0.1428	714515	575572	-	138943	3090	18	4438	13522	3108	1330	14852	105994	105994	108113	2008-12-31	24.32%	-	0.5032	-	1.31	1.28	0.8	0.14	0.7722	0.7446	0.1838	4.1425	0.8055	-5.2%	2	47	21
2008-11-27	2008	4	1.06	0.93	-	5.02%	23.06%	98314	337212	6932	37164	7104	32617	0.0667	0.3057	694768	553343	-	141425	11543	607	4589	7181	10936	6347	13528	106503	106686	112893	2008-09-30	7.05%	-	0.4854	-	1.33	1.3	0.82	0.13	0.7926	0.7637	0.1731	3.9126	0.7964	-4.8%	2	50	25
2008-08-25	2008	3	1.28	0.88	-	6.07%	16.99%	80818	238898	10914	30232	9124	25513	0.0855	0.2390	688850	538644	-	150206	3624	476	1853	7140	4100	2247	4893	106718	106746	131263	2008-06-30	13.50%	-	0.4536	-	1.41	1.38	0.89	0.07	0.8219	0.7908	0.0882	3.586	0.7819	-4.6%	3	67	22
2008-05-23	2008	2	1.42	1.18	0.01875	8.31%	10.12%	94998	158080	16965	19318	13460	16389	0.1247	0.1535	670503	508497	-	162006	564	451	2533	7172	113	2420	4752	107912	106761	151076	2008-03-31	17.86%	-	0.4386	-	1.52	1.49	0.94	0.07	0.8618	0.8202	0.1013	3.1388	0.7584	-3.5%	3	66	23
2008-02-21	2008	1	1.47	1.31	-	1.66%	1.66%	63082	63082	2353	2353	2929	2929	0.0277	0.0277	649221	472372	-	176849	2800	197	4033	7246	2603	1430	5816	105610	105610	153134	2007-12-31	3.73%	-	0.4046	-	1.67	1.65	0.88	0.06	0.8654	0.8211	0.1018	2.671	0.7276	-3.2%	3	63	19
2007-11-29	2007	4	1.55	1.3	-	9.37%	1.77%	73548	256872	16994	10791	17129	3236	0.1619	0.0309	650143	467404	-	182739	10018	2878	13307	7640	12896	411	7229	105768	104864	152305	2007-09-30	23.11%	-	0.3951	46.6638	1.74	1.71	0.84	0.07	0.8357	0.7899	0.1172	2.5578	0.7189	-3.9%	4	59	18
2007-08-27	2007	3	1.52	1.39	0.0375	3.91%	10.09%	62434	183324	11788	27785	7889	20365	0.0743	0.1933	644256	442374	-	201882	8536	1438	12127	7657	9974	2153	5504	106119	105357	144321	2007-06-30	18.88%	33.08%	0.2846	-	1.92	1.89	0.72	0.06	0.8646	0.816	0.1059	2.1913	0.6866	-4.4%	6	81	21
2007-05-28	2007	2	N/A	N/A	0.0375	0.67%	6.28%	63585	120890	392	15997	1339	12476	0.0126	0.1188	627363	428809	-	198554	13915	242	15238	7641	13673	1565	6076	106256	105016	176384	2007-03-31	0.62%	-	N/A	-	1.89	1.87	0.89	0.06	0.9477	0.8953	0.1124	2.1597	0.6835	N/A	-	N/A	N/A
2007-02-28	2007	1	N/A	N/A	0.0375	5.55%	5.55%	57305	57305	16389	16389	11137	11137	0.1073	0.1073	635150	434451	-	200699	2379	71	2556	7581	2450	5006	2575	103786	103786	166057	2006-12-31	28.60%	32.05%	N/A	-	1.93	1.92	0.83	0.04	0.7716	0.7304	0.0657	2.1647	0.684	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Deferred tax assets (A-0)	Goodwill on consolidation (A-0)	Intangible assets (A-0)	Investment properties (A-0)	Other investments (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Deposits with licensed banks (A-1)	Inventories (A-1)	Loans (A-1)	Other receivables (A-1)	Trade receivables (A-1)	Premium liabilities (L-0)	Provision for outstanding claims (L-0)	Hire purchase liabilities (L-1)	Loans & borrowings (L-1)	Other payables (L-1)	Provision for taxation (L-1)	Trade and other payables (L-1)
2010	4	5816	1935	825	605	662781	326	20757	5730	-	715	1209	292	16888	46510	184205	316768	1631	44204	10725	5103	23205
2010	3	14448	1935	756	605	759041	327	20171	6951	-	713	1564	304	23129	40146	194119	317142	1069	47632	9888	-	139241
2010	2	17707	1935	753	605	760335	328	20505	7273	-	710	1681	315	24238	17062	211126	411039	1063	51025	9388	-	24259
2010	1	19871	1935	817	605	723568	329	20817	7547	-	3954	1711	330	21454	17739	213881	395247	1050	53854	9485	-	6382
2009	4	13243	1935	868	605	706242	330	21252	8446	-	4319	1789	341	18233	14650	199573	357760	1165	52135	9813	-	8462
2009	3	19688	1935	877	605	680071	331	20731	6758	-	5931	2041	352	14942	17033	187981	341480	1078	56371	9129	7	8463
2009	2	29355	1935	892	605	638685	332	20745	7242	-	5978	2190	362	13484	21367	186762	337951	1229	55208	8590	1701	12101
2009	1	28632	1935	940	605	597634	333	20981	7085	-	8022	2268	373	17222	28485	173365	320030	1382	57055	7771	943	15026
2008	4	25293	1935	993	595	588919	334	14765	7060	-	6468	2251	395	17730	28030	168226	306972	1542	51550	9078	942	15033
2008	3	22345	1935	937	585	580886	335	15177	4863	-	2289	2521	14219	19287	23471	148992	308556	1699	59759	8267	-	11371
2008	2	21639	1935	978	585	566292	336	14539	4832	-	2715	3093	13951	17590	22018	134408	299592	1099	52945	7784	554	12115
2008	1	17973	1935	912	585	557982	337	14994	3852	-	2558	2790	13683	17287	14333	117835	291555	1130	47994	6791	227	6840
2007	4	18495	1935	967	585	561042	338	15235	5014	-	2215	2826	13416	17323	10752	113141	292583	1059	47650	7369	-	5602
2007	3	22915	1935	1035	441	550420	412	15439	3863	1550	2463	2906	13009	18842	9026	101130	281498	992	48463	5172	282	4837
2007	2	25316	1935	-	600	529465	413	18444	5007	1779	1062	2828	12750	19780	7984	95787	279007	1032	41019	5378	2200	4386
2007	1	27253	1935	-	603	534042	415	20718	4177	-	94	2680	18493	16440	8300	92407	277008	1126	49196	4918	4197	5599

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Finance/interest costs	Other income	Administrative/Operating expenses
2010	4	118309	15277	655	695	91467
2010	3	109701	4323	644	166	93828
2010	2	134834	1981	678	236	129164
2010	1	115514	6143	655	256	142610
2009	4	105831	4133	657	4648	110302
2009	3	89632	8892	678	19251	73616
2009	2	111637	1074	795	2482	109740
2009	1	85394	5630	855	520	105830
2008	4	98314	172	916	1078	105408
2008	3	80818	1790	850	650	91532
2008	2	94998	3505	785	1048	112226
2008	1	63082	576	763	818	65490
2007	4	73548	135	778	1162	90926
2007	3	62434	3899	699	16432	66379
2007	2	63585	1731	792	5092	68277
2007	1	57305	5252	766	17199	57349

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

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