KLCI Stock - AIRPORT / 5014 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	7,007,000,000 (Very Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(6.37-0.1975)/0.3524 = 17.52 (High)
Target Price	5.64+0.1975 = 5.84 (PE 16.0, EPS 0.3524, DPS 0.1975)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 23.5% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 22.4%, eps decreased 11.9% but higher than preceding year corresponding quarter 20.5%, cash generated not even enough to cover operating expenses and still got investing expenses however Group cash level is strong, stronger liquidity ratio at high level now, lower gearing ratio but still at high level now, receivables and payables ratio also also, KLIA2 target completed by April 2012
First Support Price	6.3
Second Support Price	6.0
Risk Rating	MODERATE

Research House

HLG Target Price	6.58 (2010-12-28)
Macquarie Target Price	7.5 (2011-01-14)
OSK Target Price	8.47 (2011-02-11)
TA Target Price	6.6 (2011-02-17)
RHB Target Price	7.67 (2011-03-07)
Kenanga Target Price	6.64 (2011-04-11)
HwangDBS Target Price	7.6 (2011-04-15)
Maybank Target Price	7.12 (2011-05-11)
MIDF Target Price	7.2 (2011-06-01)

Accounting Ratio

Return on Equity	9.28%
Dividend Yield	3.10%
Profit Margin	21.78%
Tax Rate	33.61%
Asset Turnover	0.2818
Net Asset Value Per Share	3.09
Net Tangible Asset per share	-0.29
Price/Net Tangible Asset Per Share	-21.97
Cash Per Share	1.21
Liquidity Current Ratio	3.7228
Liquidity Quick Ratio	3.6248
Liquidity Cash Ratio	2.2064
Gearing Debt to Equity Ratio	1.0717
Gearing Debt to Asset Ratio	0.5169
Working capital per thousand Ringgit sale	82.8%
Days to sell the inventory	28
Days to collect the receivables	157
Days to pay the payables	259

My notes based on 2011 quarter 1 report (number in '000):-
- The improved revenue in the current quarter was mainly attributed to the adoption of IC 12 which resulted in a recognition of a RM155.0 million construction revenue in relation to the construction of Klia2 and expansion of Penang International Airport as compared to RM62.2 million recognised in the same period last year

- The improvement in revenue for the current quarter under review was mainly contributed by a positive growth of 3.5% from airport operations, driven by an increase in non-aeronautical revenue of 7.3% which was mostly derived from the Group’s retail business

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0801*4*1.1 = 0.3524, estimate PE on current price 6.37 = 17.52(DPS 0.1975)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0764*4*1.1 = 0.3362(deduct 16 million other income for adjustment), estimate highest/lowest PE = 20.64/17.31 (DPS 0.1975)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*4*1.1 = 0.264(associates increasing loss), estimate highest/lowest PE = 23.49/21.41 (DPS 0.149)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.3233*0.95 = 0.3071, estimate highest/lowest PE = 19.12/16.55 (DPS 0.229)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.3429*0.9 = 0.3086 (10% drop from 0.3429), estimate highest/lowest PE = 17.24/14.81 (DPS 0.229)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.086*4 = 0.344, estimate highest/lowest PE = 13.97/12.89 (DPS 0.233)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0758*4 = 0.3032, estimate highest/lowest PE = 15.72/11.36 (DPS 0.233)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.068*4 = 0.272, estimate highest/lowest PE = 13.18/11.6 (DPS 0.1855)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0695*4 = 0.278, estimate highest/lowest PE = 13.07/10.27 (DPS 0.1855)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.069*4 = 0.276, estimate highest/lowest PE = 12.37/7.63 (DPS 0.1855)

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