KLCI Stock - MAXIS / 6012 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	41,250,000,000 (Very Large)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(5.5-0.32)/0.3164 = 16.37 (High)
Target Price	5.06+0.32 = 5.38 (PE 16.0, EPS 0.3164, DPS 0.32)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 7.7% and also lower than preceding year corresponding quarter 0.9%, eps decreased 11.6% and also lower than preceding year corresponding quarter 2.3%, cash generated from operating enough to cover all expenses and still increased borrowing, stronger liquidity ratio but still at weak level now, higher gearing ratio at high level now, payables ratio still quite high
First Support Price	5.3
Second Support Price	5.2
Risk Rating	MODERATE

Research House

CIMB Target Price	5.6 (2011-02-08)
AMMB Target Price	5.49 (2011-03-01)
HLG Target Price	5.51 (2011-03-01)
HwangDBS Target Price	5.1 (2011-03-01)
JF APEX Target Price	6.15 (2011-03-01)
Maybank Target Price	5.5 (2011-03-01)
RHB Target Price	5.65 (2011-03-01)
TA Target Price	6.1 (2011-03-01)
ECM Target Price	5.71 (2011-06-01)
MIDF Target Price	5.5 (2011-06-01)
OSK Target Price	5.2 (2011-06-01)

Accounting Ratio

Return on Equity	26.34%
Dividend Yield	5.82%
Profit Margin	34.74%
Tax Rate	27.13%
Asset Turnover	0.4762
Net Asset Value Per Share	1.15
Net Tangible Asset per share	-0.32
Price/Net Tangible Asset Per Share	-16.94
Cash Per Share	0.18
Liquidity Current Ratio	0.7507
Liquidity Quick Ratio	0.6775
Liquidity Cash Ratio	0.4002
Gearing Debt to Equity Ratio	1.1576
Gearing Debt to Asset Ratio	0.5365
Working capital per thousand Ringgit sale	-9.2%
Days to sell the inventory	19
Days to collect the receivables	36
Days to pay the payables	239

My notes based on 2011 quarter 1 report (number in '000):-
- Lower revenue primarily driven by decreases in voice, non-voice revenue and hubbing revenue. The decrease in voice and non-voice revenues was mainly due to seasonal decline in usage and fewer calendar days in the quarter. Nonetheless, non-voice revenue as a percentage of total mobile services revenue increased from 41% to 42%. The decline in hubbing revenue was in line with the planned scale down in hubbing business. Wireless broadband revenue grew by 4% or RM4 million to RM115 million as a result of introduction of new packages

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0719*4*1.1 = 0.3164, estimate PE on current price 5.5 = 16.37(DPS 0.32)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0813*4*1.05 = 0.3415, estimate highest/lowest PE = 15.72/14.58 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.075*4*1.05 = 0.315, estimate highest/lowest PE = 16.41/15.65 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0736*4*1.05 = 0.3091, estimate highest/lowest PE = 16.66/15.92 (DPS 0.32)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.328*0.9 = 0.2952, estimate highest/lowest PE = 17.68/16.46 (DPS 0.32)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 16.07/14.82 (DPS 0.24)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 16.1/15.52 (DPS 0.24)

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