KLCI Stock - KNM / 7164 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	2,082,272,593 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.08-0.02)/0.0889 = 23.17 (High)
Target Price	1.24+0.02 = 1.26 (PE 14.0, EPS 0.0889, DPS 0.02)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 7.5% and also higher than preceding year corresponding quarter 10.6%, eps decreased 7.6% and is second consecutive quarter decreasing and also lower than preceding year corresponding quarter 52.1%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio but still at low level now, higher gearing ratio at high level now, all accounting periods remain long term but working capital got increased, profit mostly came from tax income, core business still bad performing
First Support Price	2.0
Second Support Price	1.7
Risk Rating	HIGH

Research House

AMMB Target Price	3.25 (2011-03-04)
RHB Target Price	3.45 (2011-03-04)
TA Target Price	4.8 (2011-03-04)
HwangDBS Target Price	3.5 (2011-03-08)
Kenanga Target Price	3.06 (2011-03-08)
OSK Target Price	3.34 (2011-03-08)
ECM Target Price	3.43 (2011-05-27)
Maybank Target Price	3.2 (2011-05-27)
MIDF Target Price	3.2 (2011-05-27)

Accounting Ratio

Return on Equity	6.29%
Dividend Yield	1.44%
Profit Margin	1.52%
Tax Rate	-
Asset Turnover	0.4239
Net Asset Value Per Share	1.83
Net Tangible Asset per share	0.33
Price/Net Tangible Asset Per Share	7.67
Cash Per Share	0.49
Liquidity Current Ratio	1.121
Liquidity Quick Ratio	0.729
Liquidity Cash Ratio	0.4019
Gearing Debt to Equity Ratio	1.0933
Gearing Debt to Asset Ratio	0.5205
Working capital per thousand Ringgit sale	9.0%
Days to sell the inventory	115
Days to collect the receivables	180
Days to pay the payables	159

My notes based on 2011 quarter 1 report (number in '000):-
- Compared to the previous year, the higher performance for revenue and EBITDA in this year was due to higher revenue recognised and higher contribution margins, whereas profit after tax and minority interest in this year was lower due to lesser deferred taxation impact

- Estimate next 4Q eps after 2011 Q1 result announced = (0.0194+0.021)*2*1.1 = 0.0889, estimate PE on current price 2.08 = 23.06(DPS 0.02)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0655*2*1.1 = 0.1441, estimate highest/lowest PE = 20.12/15.68 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0089*4*1.2 = 0.0427(use VAT 15%, include incoming new contract), estimate highest/lowest PE = 15.36/10.54
- No estimate for next 4Q eps after 2010 Q2 result announced
- No estimate for next 4Q eps after 2010 Q1 result announced
- No estimate for next 4Q eps after 2009 Q4 result announced
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0081*4 = 0.0324, estimate highest/lowest PE = 11.67/9.39 (DPS 0.015)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0181*4 = 0.0724, estimate highest/lowest PE = 11.67/9.39 (DPS 0.015)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0250*4 = 0.1, estimate highest/lowest PE = 10.45/7
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0214*4 = 0.0856, estimate highest/lowest PE = 9.7/3.56 (DPS 0.015)

KNM latest news (English)

KNM Latest news (Chinese)