KLCI Stock - MUHIBAH / 5703 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	664,017,015 (Medium)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.66-0.035)/0.0927 = 17.53 (High)
Target Price	0.93+0.035 = 0.96 (PE 10.0, EPS 0.0927, DPS 0.035)
Decision	Not interested unless most segment got stable profit
Comment	Revenue increased 43.9% but lower than preceding year corresponding quarter 32.3%, eps increased 5.1% and also higher than preceding year corresponding quarter 243%, no cash generated from operating hence still increase borrowing, better liquidity ratio but still at low level now, better gearing ratio but still at very high ratio now, receivables and payables still increasing to higher ratio
First Support Price	1.45
Second Support Price	1.3
Risk Rating	HIGH

Research House

CIMB Target Price

2.53 (2011-01-27)

Accounting Ratio

Return on Equity	5.49%
Dividend Yield	2.11%
Profit Margin	4.15%
Tax Rate	20.86%
Asset Turnover	0.5756
Net Asset Value Per Share	1.27
Net Tangible Asset per share	1.23
Price/Net Tangible Asset Per Share	1.2
Cash Per Share	0.49
Liquidity Current Ratio	1.0562
Liquidity Quick Ratio	0.9604
Liquidity Cash Ratio	0.1081
Gearing Debt to Equity Ratio	4.1856
Gearing Debt to Asset Ratio	0.7754
Working capital per thousand Ringgit sale	6.5%
Days to sell the inventory	42
Days to collect the receivables	347
Days to pay the payables	287

My notes based on 2010 quarter 4 report (number in '000):-
- The Group reported an increase of 63% consolidated profit after tax to RM47.0 million for the current year ended 31 December 2010 under review as compared to RM28.9 million for the last corresponding period ended 31 December 2009 mainly due to better results from the Infrastructure Construction Division and Concession Division has also registered higher contribution from the Cambodia Airports with increasing airport passenger arrivals

- The Group reported a higher consolidated profit after tax for the current quarter of RM13.65 million as compared to RM12.6 million reported in the previous quarter was mainly due to improved results from the Infrastructure Construction Division and Cranes Division

- As at 22 February 2011, the total outstanding secured order book in hand of the Group is RM3.10 billion, comprises of RM2.29 billion from Infrastructure Construction Division, RM453 million from Cranes Division and RM360 million from Shipyard Division. These outstanding secured order books will take us into 2013

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0843*1.1 = 0.0927, estimate PE on current price 1.66 = 17.53 (DPS 0.035)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0481*2 = 0.0962(although revenue decrease but offset by high tax rate), estimate highest/lowest PE = 20.06/12.79
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0266*4 = 0.1064, estimate highest/lowest PE = 9.35/7.99
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0135*4 = 0.054, estimate highest/lowest PE = 18.43/15.74
- No estimate for 2009 Q4 result
- No estimate for 2009 Q3 result
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0362*4 = 0.1448, estimate highest/lowest PE = 9.29/6.94 (DPS 0.025)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.039*4 = 0.156, estimate highest/lowest PE = 8.17/4.04 (DPS 0.025)

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