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Thursday, June 16, 2011

KLCI Stock - HEXAGON / 7455 - 2011 Quarter 4

Company Info
Market Capital (Capital Size)30,519,906 (Very Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now0.23/0.0136 = 16.91 (High)
Target Price0.0136*4.0 = 0.05 (PE 4.0, EPS 0.0136)
DecisionNot interested unless revenue and profit increase more
Revenue decreased 46.9% and also lower than preceding year corresponding quarter 65.7%, eps largely loss than preceding quarter and preceding year corresponding quarter, cash generated from operating and financing also not enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at very high level now, receivables and payables ratio are high, continuing affect by weakening of USD and Europe currencies
First Support Price0.18
Second Support Price0.16
Risk RatingHIGH

Accounting Ratio
Return on Equity-65.10%
Dividend Yield-
Profit Margin-87.24%
Tax Rate-
Asset Turnover0.7593
Net Asset Value Per Share0.4
Net Tangible Asset per share0.38
Price/Net Tangible Asset Per Share1.09
Cash Per Share0.48
Liquidity Current Ratio1.099
Liquidity Quick Ratio0.9105
Liquidity Cash Ratio0.2148
Gearing Debt to Equity Ratio6.7268
Gearing Debt to Asset Ratio0.8323
Working capital per thousand Ringgit sale8.9%
Days to sell the inventory60
Days to collect the receivables225
Days to pay the payables100

My notes based on 2011 quarter 4 report (number in '000):-
- Lower revenue primarily due to lower revenue from Engineering division as substantial part of the projects was completed in previous quarters

- Significant loss largely attributable to significant provisions by the Engineering divisions for impairment of long term contracts, provisions for additional costs to complete projects previously undertaken, fair value adjustments for receivables and inventory written-off

- Estimate next 4Q eps after 2011 Q4 result announced = 72198*0.025/132695 = 0.0136, estimate PE on current price 0.23 = 16.91
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0042*4*1.05 = 0.0176, estimate highest/lowest PE = 29.55/22.73
- 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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