KLCI Stock - KELADI / 6769 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	140,287,350 (Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.185-0.015)/0.0196 = 8.67 (Moderate)
Target Price	0.20+0.015 = 0.21 (PE 10.0, EPS 0.0196, DPS 0.015)
Decision	BUY
Comment	Revenue decreased 50% and also lower than preceding year corresponding quarter 33.5%, eps decreased 16.9% but higher than preceding year corresponding quarter 130%, cash generated from operating is more than enough to cover expenses, stronger liquidity ratio at very strong level now, lower gearing ratio at very low level now, inventory turnover period very long time but offset by higher working capital
First Support Price	0.18
Second Support Price	0.17
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	9.01%
Dividend Yield	8.11%
Profit Margin	30.90%
Tax Rate	26.14%
Asset Turnover	0.2486
Net Asset Value Per Share	0.25
Net Tangible Asset per share	0.25
Price/Net Tangible Asset Per Share	0.74
Cash Per Share	0.09
Liquidity Current Ratio	5.1837
Liquidity Quick Ratio	3.9766
Liquidity Cash Ratio	2.6078
Gearing Debt to Equity Ratio	0.132
Gearing Debt to Asset Ratio	0.114
Working capital per thousand Ringgit sale	191.7%
Days to sell the inventory	314
Days to collect the receivables	224
Days to pay the payables	245

My notes based on 2012 quarter 1 report (number in '000):-
- The increase in revenue was mainly due to higher progress revenue recognised for on-going project and increased in sales of Fresh Fruit Bunches (FFB) in current quarter compared to previous year’s corresponding quarter. The increase in profit before tax and non-controlling interests were attributed to increase in interest income, decreased in the development cost and administrative expenses

- The Group will continue to leverage on the success of its projects in Taman Lagenda and newly launched project namely Kulim Square Indah. Kulim Square Indah consists of shophouses, terrace houses, semi-detached houses and detached houses. This project was launch in March 2011 and the sales were encouraging

- Estimate next 4Q eps after 2012 Q1 result announced = 0.0227, estimate PE on current price 0.185 = 8.67(DPS 0.015)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.0212+0.018)/2 = 0.0196, estimate highest/lowest PE = 9.44/8.16 (DPS 0.015)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.017(recent 4 quarters eps), estimate highest/lowest PE = 12.06/9.41 (DPS 0.01)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0178*0.9 = 0.016, estimate highest/lowest PE = 12.19/9.06 (DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0178 (based on last year), estimate highest/lowest PE = 8.99/7.87 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0155 (13% drop from 0.0178), estimate highest/lowest PE = 10/9.03 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q3 result announced = (0.0218+0.0289+0.019)/3 = 0.0232, estimate highest/lowest PE = 6.9/5.6 (DPS 0.015)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0031*4 = 0.0124, estimate highest/lowest PE = 12.5/10.48 (DPS 0.015)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0042*4 = 0.0168, estimate highest/lowest PE = 9.52/7.74 (DPS 0.015)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0031*4 = 0.0124, estimate highest/lowest PE = 14.11/8.06 (DPS 0.015)

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