KLCI Stock - ASIAPAC / 4057 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	112,161,220 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	0.115/0.0263 = 4.37 (Moderate)
Target Price	0.0263*6.0 = 0.16 (PE 6.0, EPS 0.0263)
Decision	BUY
Comment	Revenue third consecutive quarter largely decreasing and also largely lower than preceding year corresponding period, eps increased from loss but 50% lower than preceding year corresponding period, negative free cash flow increased and net cash flow turn into negative from positive, liquidity ratio largely increasing to high level now, gearing ratio decreased but still at above moderate level now, inventory and payables period very high, receivables period increasing but still acceptable
First Support Price	0.095
Second Support Price	0.08
Risk Rating	HIGH

Accounting Ratio

Return on Equity	3.74%
Dividend Yield	-
Profit Margin	30.45%
Tax Rate	29.11%
Asset Turnover	0.1029
Net Asset Value Per Share	0.31
Net Tangible Asset per share	0.28
Price/Net Tangible Asset Per Share	0.36
Cash Per Share	0.03
Liquidity Current Ratio	3.537
Liquidity Quick Ratio	0.6489
Liquidity Cash Ratio	0.4446
Gearing Debt to Equity Ratio	0.8173
Gearing Debt to Asset Ratio	0.4497
Working capital per thousand Ringgit sale	321.0%
Days to sell the inventory	1730
Days to collect the receivables	94
Days to pay the payables	336

My notes based on 2011 quarter 2 report (number in '000):-
- The Group recorded a turnover and pre-tax profit of RM12.3 million and RM484K respectively for the period ended 30 September 2010. This represents a decrease of 79% and 96% in turnover and pre-tax profit respectively as compared to the preceding year corresponding period

- The decrease in turnover and pre-tax profit were mainly due to lower revenue recognised for development activities and the effect of adopting FRS 139 whereby the write back of quoted investments was adjusted in the statement of comprehensive income

- The Group recorded a pre-tax profit of RM1.539 million in the current quarter as compared to the pre-tax loss of RM1.055 million in the preceding quarter. The improved in performance was mainly due to write back of allowance for doubtful debts and profit from sale of quoted investments

- Due to property development costs largely increasing, so estimate future eps will be based on average eps of year 2007 and 2008 which is 0.0263, estimate PE on current price 0.115 = 4.37
- Estimate next 4Q eps after 2011 Q1 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 6.25/4
- Estimate next 4Q eps after 2010 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 5/3.75
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0141, estimate highest/lowest PE = 7.09/4.96
- Estimate next 4Q eps after 2010 Q2 result announced = 0.018, estimate highest/lowest PE = 6.11/4.72
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0106, estimate highest/lowest PE = 10.85/8.49

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