KLCI Stock - KGB / 0151 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	56,168,100 (Very Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	0.71/0.12 = 5.92 (Moderate)
Target Price	0.12*6.0 = 0.72 (PE 6.0, EPS 0.12)
Decision	NOT BUY unless price below 0.67
Comment	Revenue increased 26.1% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 61.4%, eps increased 21.5% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 58%, cash generated from operating still very sufficient to cover all payments, got bought plant & equipment to enlarge the Group, liquidity ratio decreasing at moderate level now, gearing ratio increasing from moderate to above moderate level, working capital decreasing and receivables and payables increasing but offset by private placement
First Support Price	0.66
Second Support Price	0.64
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	20.90%
Dividend Yield	-
Profit Margin	8.23%
Tax Rate	-
Asset Turnover	1.2138
Net Asset Value Per Share	0.54
Net Tangible Asset per share	0.53
Price/Net Tangible Asset Per Share	1.28
Cash Per Share	0.3
Liquidity Current Ratio	2.1927
Liquidity Quick Ratio	2.1558
Liquidity Cash Ratio	0.7824
Gearing Debt to Equity Ratio	0.7417
Gearing Debt to Asset Ratio	0.4259
Working capital per thousand Ringgit sale	39.8%
Days to sell the inventory	5
Days to collect the receivables	166
Days to pay the payables	116

My notes based on 2010 quarter 4 report (number in '000):-
- For the current quarter, the Group recorded higher revenue mainly due to the contribution from Malaysia projects

- Compared to preceding quarter, the Group pbt was lower mainly due to the projects undertaken with lower margins

- Estimate next 4Q eps after 2010 Q4 result announced = 0.12, estimate PE on current price 0.71 = 5.92, after private issues eps = 0.108, PE = 6.57
- Estimate next 4Q eps after 2010 Q3 result announced = 0.095, estimate highest/lowest PE = 7.16/6.42 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.095, estimate highest/lowest PE = 8.63/7.05 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate highest/lowest PE = 9.6/6.6 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate PE on current price 0.77 = 7.4(DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1, estimate highest/lowest PE = 7.7/6.65 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1, estimate highest/lowest PE = 9/5.8

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