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Monday, April 11, 2011

KLCI Stock - HEXAGON / 7455 - 2011 Quarter 3

Company Info
Market Capital (Capital Size)67,011,099 (Very Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now0.505/0.0176 = 28.69 (High)
Target Price0.0176*5.0 = 0.09 (PE 5.0, EPS 0.0176)
DecisionNot interested unless profit margin increase more
Revenue increased 25.9% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 73.9%, eps decreased 79.6% but is recover from loss in preceding year corresponding quarter, cash generated from operating is not enough to cover increased receivables hence still increased borrowing, liquidity ratio increasing at low level now, gearing ratio increasing at very high level now, still high receivables compare to working capital, continuing affect by weakening of USD and Europe currencies
First Support Price0.42
Second Support Price0.4
Risk RatingHIGH

Accounting Ratio
Return on Equity3.63%
Dividend Yield-
Profit Margin1.07%
Tax Rate6.12%
Asset Turnover0.9245
Net Asset Value Per Share0.78
Net Tangible Asset per share0.76
Price/Net Tangible Asset Per Share0.64
Cash Per Share0.28
Liquidity Current Ratio1.2672
Liquidity Quick Ratio1.0853
Liquidity Cash Ratio0.1291
Gearing Debt to Equity Ratio3.3826
Gearing Debt to Asset Ratio0.7418
Working capital per thousand Ringgit sale17.4%
Days to sell the inventory46
Days to collect the receivables227
Days to pay the payables78

My notes based on 2011 quarter 3 report (number in '000):-
- For the current quarter compared to preceding year corresponding quarter, the Group revenue was higher primarily generated from engineering division which managed to secure some fast-track projects during the year. PAT improved significantly largely attributed to higher margin and revenue, and lower overheads across the business segments

- Engineering division has contributed significantly to the revenue growth as the new projects were progressing smoothly during the current quarter but lower margin from some of the existing projects has affected the Group PAT

- Estimate next 4Q eps after 2011 Q3 result announced = 0.0042*4*1.05 = 0.0176, estimate PE on current price 0.505 = 28.69
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0065*4 = 0.026, estimate highest/lowest PE = 23.65/16.15
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0059*4 = 0.0236, estimate highest/lowest PE = 25.42/17.8

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