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Thursday, June 9, 2011

KLCI Stock - HUAAN / 2739 - 2011 Quarter 1

Company Info
Market Capital (Capital Size)359,138,501 (Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now(0.32-0.00178)/0.0070 = 45.46 (High)
Target Price0.06+0.00178 = 0.06 (PE 8.0, EPS 0.0070, DPS 0.00178)
DecisionNot interested unless raw material costs decrease
Revenue increased 3.9% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 1.6%, eps decreased 70.4% but recovered from loss over preceding year corresponding quarter, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio at below moderate level now, all accounting periods are good, continuing affect by increased raw material costs
First Support Price0.32
Second Support Price0.315
Risk RatingHIGH

Research House
OSK Target Price0.32 (2011-05-20)

Accounting Ratio
Return on Equity1.40%
Dividend Yield0.56%
Profit Margin0.23%
Tax Rate-
Asset Turnover1.7119
Net Asset Value Per Share0.61
Net Tangible Asset per share0.52
Price/Net Tangible Asset Per Share0.65
Cash Per Share0.03
Liquidity Current Ratio2.0594
Liquidity Quick Ratio1.2997
Liquidity Cash Ratio0.2581
Gearing Debt to Equity Ratio0.2016
Gearing Debt to Asset Ratio0.1678
Working capital per thousand Ringgit sale10.4%
Days to sell the inventory27
Days to collect the receivables34
Days to pay the payables36

My notes based on 2011 quarter 1 report (number in '000):-
- Higher revenue primarily attributed to the favourable upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume

- Lower pbt mainly due to increase in the average price of raw material(i.e. coking coal)

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate PE on current price 0.32 = 45.46(DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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