KLCI Stock - GAMUDA / 5398 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	7,725,748,755 (Very Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(3.75-0.12)/0.1657 = 21.91 (Moderate)
Target Price	3.81+0.12 = 3.93 (PE 23.0, EPS 0.1657, DPS 0.12)
Decision	Watching, buy when lower sell volume
Comment	Revenue decreased 4.3% and is second consecutive quarter decreasing but still higher than preceding year corresponding quarter 0.7%, eps increased 5% and is fourth consecutive quarter increasing(higher than preceding year corresponding quarter 30.7%), no cash generate from operating after deduct liabilities expenses hence generated some cash from investment disposal and financing activities but still not enough to cover all expenses, weaker liquidity ratio at moderate level now, higher gearing ratio at above moderate level now, all turnover periods getting longer
First Support Price	3.6
Second Support Price	3.45
Risk Rating	MODERATE

Research House

RHB Target Price	4.03 (2011-03-14)
ECM Target Price	3.99 (2011-03-15)
HLG Target Price	3.63 (2011-03-23)
MIDF Target Price	4.68 (2011-03-23)
AMMB Target Price	4.25 (2011-03-24)
CIMB Target Price	5.6 (2011-03-25)
Kenanga Target Price	4.12 (2011-03-25)
Maybank Target Price	4.45 (2011-03-25)
OSK Target Price	4.96 (2011-03-25)
HwangDBS Target Price	5.25 (2011-04-27)

Accounting Ratio

Return on Equity	9.19%
Dividend Yield	3.20%
Profit Margin	20.64%
Tax Rate	22.63%
Asset Turnover	0.3523
Net Asset Value Per Share	1.68
Net Tangible Asset per share	1.68
Price/Net Tangible Asset Per Share	2.26
Cash Per Share	0.72
Liquidity Current Ratio	2.3133
Liquidity Quick Ratio	1.7508
Liquidity Cash Ratio	0.9009
Gearing Debt to Equity Ratio	0.8942
Gearing Debt to Asset Ratio	0.457
Working capital per thousand Ringgit sale	91.4%
Days to sell the inventory	160
Days to collect the receivables	212
Days to pay the payables	114

My notes based on 2011 quarter 2 report (number in '000):-
- The increase in profit before taxation for the current quarter resulted from higher contributions from all divisions

- Implementation of the Klang Valley Mass Rapid Transit Project. Works are expected to commence in the third quarter of the calendar year

- Unbilled sales reached RM840 million in property division as a result of good sales performance

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0439*4*1.05 = 0.1844, estimate PE on current price 3.8 = 22.21(DPS 0.12)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0789*2*1.05 = 0.1657, estimate highest/lowest PE = 24.98/20.64 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0371*4*1.1 = 0.1632, estimate highest/lowest PE = 23.84/20.47 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0361*4 = 0.1444, estimate highest/lowest PE = 26.73/20.78 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0336*4 = 0.1344, estimate highest/lowest PE = 23.14/19.2 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0311*4 = 0.1244, estimate highest/lowest PE = 22.83/19.77 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0215*4 = 0.086, estimate highest/lowest PE = 38.02/30.81 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0231*4 = 0.0924, estimate highest/lowest PE = 36.36/27.81 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0244*4 = 0.0976, estimate highest/lowest PE = 28.59/19.26 (DPS 0.08)

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