KLCI Stock - WCT / 9679 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	2,385,186,423 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(3.02-0.1)/0.1699 = 17.19 (High)
Target Price	2.55+0.1 = 2.65 (PE 15.0, EPS 0.1699, DPS 0.1)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 22.5% but lower than preceding year corresponding quarter 63.8%, eps increased 36.7% and also higher than preceding year corresponding quarter 27.1%, negative free cash flow decreased and net cash flow turn into positive, liquidity ratio increasing but still at low level now, gearing ratio increased and still at very high level now, receivables and payables period increased to very high but offset by working capital also increased 4 times, high material cost may impact property development and civil engineering & construction segments, new warrants which is going to dilute the earning per share
First Support Price	3.0
Second Support Price	2.8
Risk Rating	HIGH

Research House

HwangDBS Target Price	4.15 (2011-01-11)
Maybank Target Price	3.75 (2011-02-11)
HLG Target Price	3.85 (2011-03-01)
OSK Target Price	3.75 (2011-03-10)

Accounting Ratio

Return on Equity	9.24%
Dividend Yield	3.31%
Profit Margin	20.96%
Tax Rate	12.43%
Asset Turnover	0.3718
Net Asset Value Per Share	1.57
Net Tangible Asset per share	1.57
Price/Net Tangible Asset Per Share	1.84
Cash Per Share	1.46
Liquidity Current Ratio	1.6905
Liquidity Quick Ratio	1.4914
Liquidity Cash Ratio	0.7533
Gearing Debt to Equity Ratio	2.4528
Gearing Debt to Asset Ratio	0.6676
Working capital per thousand Ringgit sale	62.4%
Days to sell the inventory	77
Days to collect the receivables	243
Days to pay the payables	261

My notes based on 2010 quarter 4 report (number in '000):-
- For the quarter under review, the Group achieved revenue of RM438 million as compared with RM1208 million of the corresponding quarter. Net profit after taxation and minority interest of the Group was RM42 million as compared with RM33 million of the corresponding quarter

- For the current financial year to date, the Group achieved revenue of RM1709 million and net profit after taxation and minority interest of RM141 million against revenue of RM4.7 billion and net profit after taxation and minority interest of RM147 million respectively recorded in the previous financial year

- For the quarter under review, the Group recorded revenue and net profit after taxation and minority interest of RM438 million and RM42 million as compared to revenue and profit after taxation and minority interest of RM357 million and RM31 million reported in the immediate preceding quarter

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0809*2*1.05 = 0.1699(offset higher profit from property investment due to profit from this segment usually not maintaining), estimate PE on current price 3.02 = 17.19(DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0809*2*1.05 = 0.1699, estimate highest/lowest PE = 20.78/16.24 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1703*1.1 = 0.1873, estimate highest/lowest PE = 17.14/14.26 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0441*4*0.9 = 0.1588, estimate highest/lowest PE = 17.51/14.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 18.88/15.13 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 16.94/13.75 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0535*4 = 0.214, estimate highest/lowest PE = 12.85/11.07 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.05*4 = 0.2, estimate highest/lowest PE = 13.83/8.48 (DPS 0.095, economy crisis)

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