KLCI Stock - MALTON / 6181 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	203,786,462 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(0.585-0.015)/0.0821 = 6.94 (Moderate)
Target Price	0.82+0.015 = 0.84 (PE 10.0, EPS 0.0821, DPS 0.015)
Decision	BUY
Comment	Revenue increased 6.5% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 79.3%, eps increased 89.2% and is fourth consecutive quarter increasing and also higher than preceding year corresponding quarter 619%, cash generated from operating is still not enough to cover all expenses due to increased receivables hence still increased borrowings, stronger liquidity ratio at moderate ratio now, lower gearing ratio at moderate level now, all accounting periods also quite long time but working capital also quite high percentage to cover, higher profit margin, lower inventories level
First Support Price	0.54
Second Support Price	0.46
Risk Rating	MODERATE

Research House

NetResearch Target Price

1.5 (2011-05-23)

Accounting Ratio

Return on Equity	10.74%
Dividend Yield	2.56%
Profit Margin	33.15%
Tax Rate	31.87%
Asset Turnover	0.5028
Net Asset Value Per Share	1.38
Net Tangible Asset per share	1.38
Price/Net Tangible Asset Per Share	0.55
Cash Per Share	0.18
Liquidity Current Ratio	2.644
Liquidity Quick Ratio	1.3956
Liquidity Cash Ratio	0.3015
Gearing Debt to Equity Ratio	0.5763
Gearing Debt to Asset Ratio	0.3656
Working capital per thousand Ringgit sale	88.0%
Days to sell the inventory	296
Days to collect the receivables	212
Days to pay the payables	144

My notes based on 2011 quarter 3 report (number in '000):-
- The higher pre-tax profit achieved for the current quarter was mainly attributed to higher billings from property development division arising from completion of en bloc sales of an office tower of V Square Project and billings from commercial projects with better margins together with better cost savings arising from the continuous re-engineering exercise carried out by the Group

- In addition there was a higher contribution from share of the results of its associated company

- The outlook in the property market remains positive as can be seen from good take up rates for its launched projects. The on-going development projects of the Group namely, Amaya Maluri, V Square, Bukit Rimau Shops and The Grove together with on-going construction and project management contracts

- Estimate next 4Q eps after 2011 Q3 result announced = 0.0684*1.2 = 0.0821, estimate PE on current price 0.585 = 6.94(DPS 0.015)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0159*3+0.0159*1.3 = 0.0684, estimate highest/lowest PE = 11.18/7.97 (DPS 0.015)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0159*4 = 0.0636, estimate highest/lowest PE = 13.05/8.88 (DPS 0.015)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0627*0.9 = 0.0564, estimate highest/lowest PE = 15.25/7.54
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*0.9 = 0.054, estimate highest/lowest PE = 10.09/6.67
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0186*4 = 0.0744, estimate highest/lowest PE = 6.05/4.7
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0184*4 = 0.0736, estimate highest/lowest PE = 6.05/4.76
- Estimate next 4Q eps after 2009 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 19.5/17.5
- Estimate next 4Q eps after 2009 Q3 result announced = 0.003*4 = 0.012, estimate highest/lowest PE = 35.83/25
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0067*4 = 0.0268, estimate highest/lowest PE = 14.55/9.7

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