KLCI Stock - MAHSING / 8583 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	2,153,763,293 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.59-0.076)/0.194 = 12.96 (Moderate)
Target Price	3.10+0.076 = 3.18 (PE 16.0, EPS 0.194, DPS 0.076)
Decision	BUY
Comment	Revenue increased 4.2% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 30.8%, eps increased 29% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 44.8%, no cash generated from operating after allocate cash to property development cost but cash generate from financing still enough to cover all expenses, weaker liquidity ratio at moderate level now, higher gearing ratio at high level now, inventory and payables increasing to very high level
First Support Price	2.5
Second Support Price	2.3
Risk Rating	MODERATE

Research House

Nomura Target Price	3.08 (2011-02-10)
Maybank Target Price	3 (2011-02-18)
Kenanga Target Price	3.1 (2011-02-28)
CIMB Target Price	3.3 (2011-04-12)
MIDF Target Price	2.9 (2011-04-13)
RHB Target Price	3.15 (2011-04-15)
TA Target Price	3.32 (2011-04-15)
HLG Target Price	2.93 (2011-05-26)

Accounting Ratio

Return on Equity	14.19%
Dividend Yield	2.93%
Profit Margin	18.66%
Tax Rate	27.99%
Asset Turnover	0.5146
Net Asset Value Per Share	1.13
Net Tangible Asset per share	1.13
Price/Net Tangible Asset Per Share	2.3
Cash Per Share	0.32
Liquidity Current Ratio	2.336
Liquidity Quick Ratio	0.7643
Liquidity Cash Ratio	0.3022
Gearing Debt to Equity Ratio	1.3736
Gearing Debt to Asset Ratio	0.5741
Working capital per thousand Ringgit sale	102.9%
Days to sell the inventory	551
Days to collect the receivables	128
Days to pay the payables	272

My notes based on 2011 quarter 1 report (number in '000):-
- The improved revenue and profit for the quarter is attributable to progressive recognition of development revenue and profit contribution from its poperty development activities carried out in Kuala Lumpur, Klang Valley, Penang Islandand and Johor Bahru

- Higher profit mainly attributable to higher profit contribution from property development activities and lower selling and marketing expenses compared to the preceding quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0485*4 = 0.194, estimate PE on current price 2.59 = 12.96(DPS 0.076)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0376*4*1.1 = 0.1654, estimate highest/lowest PE = 16.05/13.2 (DPS 0.076)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0357*4*1.1 = 0.1571, estimate highest/lowest PE = 17.6/10.85 (DPS 0.065)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0355*4*1.1 = 0.1562, estimate highest/lowest PE = 12.45/10.47 (DPS 0.065)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034*4*1.1 = 0.1496, estimate highest/lowest PE = 12.13/9.99 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0388*4 = 0.1552, estimate highest/lowest PE = 12.6/10.53 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0373*4 = 0.1492, estimate highest/lowest PE = 12.73/10.72 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0366*4 = 0.1464, estimate highest/lowest PE = 13.66/11.61 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.036*4 = 0.144, estimate highest/lowest PE = 13.68/11.39 (DPS 0.08)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0271*4 = 0.1084, estimate highest/lowest PE = 16.33/13.28 (DPS 0.08)

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