KLCI Stock - MMCCORP / 2194 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	8,404,361,603 (Very Large)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(2.76-0.035)/0.119 = 22.90 (High)
Target Price	1.90+0.035 = 1.94 (PE 16.0, EPS 0.119, DPS 0.035)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 1.2% but higher than preceding year corresponding quarter 7.7%, eps decreased 59% but higher than preceding year corresponding quarter 29.4%, cash generated from operating more than enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at very high ratio now, all accounting periods are good, construction division continue loss
First Support Price	2.56
Second Support Price	2.35
Risk Rating	MODERATE

Research House

Credit Suisse Target Price	3.8 (2010-10-04)
S&P Target Price	3 (2010-11-25)
HwangDBS Target Price	3.7 (2011-06-01)
Kenanga Target Price	3.16 (2011-06-14)
OSK Target Price	3.58 (2011-06-14)

Accounting Ratio

Return on Equity	3.40%
Dividend Yield	1.27%
Profit Margin	12.80%
Tax Rate	37.03%
Asset Turnover	0.2478
Net Asset Value Per Share	2.19
Net Tangible Asset per share	-0.4
Price/Net Tangible Asset Per Share	-6.98
Cash Per Share	1.66
Liquidity Current Ratio	1.2784
Liquidity Quick Ratio	1.1692
Liquidity Cash Ratio	0.812
Gearing Debt to Equity Ratio	3.8987
Gearing Debt to Asset Ratio	0.7135
Working capital per thousand Ringgit sale	19.2%
Days to sell the inventory	36
Days to collect the receivables	79
Days to pay the payables	101

My notes based on 2011 quarter 1 report (number in '000):-
- Higher profit recorded from Energy & Utilities division due to higher volume of gas sold, lower other operating expenses, improved associates performance and lower finance cost following repayment of loan during the period

- Higher profit recorded from Transport & Logistics division mainly driven by the increase in
throughput volume

- Better performance from the Engineering & Construction division mainly due to the absence of profit revisions for the double track project despite the project losses of Zelan Berhad, an
associate company of the group

- Lower contribution from Corporate & Others division by RM33.5 million or 124.8% was due to no gain on disposal of investment recorded as in the corresponding financial period

- Estimate next 4Q eps after 2011 Q1 result announced = 0.1133*1.05 = 0.119, estimate PE on current price 2.76 = 22.9(DPS 0.035)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1133, estimate highest/lowest PE = 25.99/22.29 (DPS 0.035)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0676*2*1.1 = 0.1487, estimate highest/lowest PE = 21.45/17.82 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0402*2*1.1 = 0.0884, estimate highest/lowest PE = 37.56/27.94 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0777*1.1 = 0.0855, estimate highest/lowest PE = 31.23/25.73 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0777*1.1 = 0.0855, estimate highest/lowest PE = 29.82/25.38 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0297*4*0.9 = 0.1069, estimate highest/lowest PE = 23.43/20.63 (DPS 0.025)

MMCCORP latest news (English)

MMCCORP latest news (Chinese)