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Saturday, February 26, 2011

KLCI Stock - IRCB / 2127 - 2011 Quarter 3

Company Info
Market Capital (Capital Size)150,966,681 (Small)
Par ValueRM 0.20

My Analysis
Forecast P/E now0.255/0.0079 = 32.28 (High)
Target Price0.0079*6.0 = 0.05 (PE 6.0, EPS 0.0079)
DecisionNot interested unless revenue and profit increase more
Revenue third consecutive quarter decreasing and also lower than preceding year corresponding quarter, eps decreased(exclude other income) and turn into loss compared to preceding year corresponding quarter, free cash flow more negative, net and final cash flow still negative, liquidity ratio increasing but still weak, gearing ratio decreasing but still high, all accounting periods are acceptable, high latex price, USD against MYR still weak
First Support Price0.24
Second Support Price0.225
Risk RatingHIGH

Accounting Ratio
Return on Equity5.58%
Dividend Yield-
Profit Margin9.01%
Tax Rate-
Asset Turnover0.9187
Net Asset Value Per Share0.31
Net Tangible Asset per share0.17
Price/Net Tangible Asset Per Share1.47
Cash Per Share0.0
Liquidity Current Ratio0.939
Liquidity Quick Ratio0.3833
Liquidity Cash Ratio0.0049
Gearing Debt to Equity Ratio1.2644
Gearing Debt to Asset Ratio0.5584
Working capital per thousand Ringgit sale-3.1%
Days to sell the inventory104
Days to collect the receivables70
Days to pay the payables45

My notes based on 2011 quarter 3 report (number in '000):-
- The Group's profit before taxation for the quarter ended 31 October 2010 was RM2.87 million as compared to the preceding year corresponding quarter's profit before taxation of RM0.35 million. The higher current year's quarter profit was mainly due to the gain on disposal of land

- The Group recorded a profit before taxation of RM2.87 million on a revenue of RM31.82 million for the current quarter as compared to a profit before taxation of RM0.15 million on a revenue of RM33.83 million for the immediate preceding quarter ended 31 July 2010. The higher profit in the current quarter was mainly due to the disposal of land

- No estimate next 4Q eps after 2011 Q3 result announced due to exclude other income will be a loss, if use eps from FY2010Q2 to FY2011Q1 = 0.0079, estimate PE on current price 0.255 = 32.28
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0021*2*1.05 = 0.0044(exclude gain from sale of land), estimate highest/lowest PE = 118.18/51.14
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0079(remain recent last 4Q cumulative eps), estimate highest/lowest PE = 102.53/48.73
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0022*4 = 0.0088, estimate highest/lowest PE = 128.41/67.61

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