KLCI Stock - KAF / 5096 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	175,200,000 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.46-0.075)/0.166 = 8.34 (High)
Target Price	1.33+0.075 = 1.40 (PE 8.0, EPS 0.166, DPS 0.075)
Decision	Not interested unless revenue and profit exclude other income increase more
Comment	Revenue increased 16.6% but higher than preceding year corresponding quarter 63.5%, eps decreased 44.1% but higher than preceding year corresponding quarter 67.8%, no cash generated from operating due to receivables largely increased and investing and financing activities deducting 40% of Group cash, weaker liquidity ratio at low level now, higher gearing ratio at high level now, explore retail electronic broker network
First Support Price	1.46
Second Support Price	1.4
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	10.25%
Dividend Yield	5.14%
Profit Margin	50.52%
Tax Rate	26.92%
Asset Turnover	0.0777
Net Asset Value Per Share	1.92
Net Tangible Asset per share	1.91
Price/Net Tangible Asset Per Share	0.73
Cash Per Share	1.74
Liquidity Current Ratio	1.7892
Liquidity Quick Ratio	1.7892
Liquidity Cash Ratio	0.7678
Gearing Debt to Equity Ratio	1.1826
Gearing Debt to Asset Ratio	0.5415
Working capital per thousand Ringgit sale	548.9%
Days to sell the inventory	-
Days to collect the receivables	2587
Days to pay the payables	3447

My notes based on 2011 quarter 3 report (number in '000):-
- The net gain on disposal of unquoted investments, which are mainly private debts securities, for the current financial period to date amounted to RM0.27 million. There was no sale of properties during the period

- Estimate next 4Q eps after 2011 Q3 result announced = 0.1953*0.85 = 0.166, estimate PE on current price 1.46 = 8.34(DPS 0.075)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1819*1.05 = 0.191, estimate highest/lowest PE = 7.72/6.73 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1806*1.05 = 0.1896, estimate highest/lowest PE = 7.94/6.99 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1729*0.9 = 0.1556(10% drop due to assets decreased), estimate highest/lowest PE = 9.03/7.49 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0443(average from recent 3 quarter)*4 = 0.1772, estimate highest/lowest PE = 7.93/6.35 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2262, estimate highest/lowest PE = 6.26/5.11 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2184, estimate highest/lowest PE = 6.8/4.97 (DPS 0.075)

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