KLCI Stock - MYEG / 0138 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	450,788,250 (Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.75-0.011)/0.0462 = 16.00 (Moderate)
Target Price	0.88+0.011 = 0.89 (PE 19.0, EPS 0.0462, DPS 0.011)
Decision	BUY
Comment	Revenue increased 16.6% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 19.5%, eps increased 8.2% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 8.2%, cash generated from operating is more than enough to cover all expenses, weaker liquidity ratio but still at strong level now, higher gearing ratio at low level now, slightly high receivables but offset by better working capital
First Support Price	0.735
Second Support Price	0.7
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	22.46%
Dividend Yield	1.47%
Profit Margin	31.90%
Tax Rate	0.48%
Asset Turnover	0.6423
Net Asset Value Per Share	0.16
Net Tangible Asset per share	0.14
Price/Net Tangible Asset Per Share	5.36
Cash Per Share	0.03
Liquidity Current Ratio	5.3599
Liquidity Quick Ratio	5.3599
Liquidity Cash Ratio	1.8494
Gearing Debt to Equity Ratio	0.1275
Gearing Debt to Asset Ratio	0.1131
Working capital per thousand Ringgit sale	55.7%
Days to sell the inventory	-
Days to collect the receivables	163
Days to pay the payables	55

My notes based on 2011 quarter 3 report (number in '000):-
- The increase in Revenue are primarily attributable to:
i) increase in JPJ related services for theory test taking
ii) increase in online payment of traffic summons due to the campaign by Polis Di Raja Malaysia (“PDRM”) which was extended to Q3 FY2011
iii) encouraging growth for our online renewal of insurance and road tax transactions

- However, this was offset by the higher marketing related expenses to further promote MYEG’s brand name and services during the period under review as compared to the corresponding period in FY2010

- Estimate next 4Q eps after 2011 Q3 result announced = 0.0105*4*1.1 = 0.0462, estimate PE on current price 0.75 = 16(DPS 0.006)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0097*4*1.1 = 0.042, estimate highest/lowest PE = 19.62/16.29 (DPS 0.006)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.032*1.1 = 0.0352, estimate highest/lowest PE = 26.7/20.45 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0097*4*1.1 = 0.0427, estimate highest/lowest PE = 19.32/16.16 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0088*4 = 0.0352, estimate highest/lowest PE = 24.57/14.91 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 20.57/12.66 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0074*4 = 0.0296, estimate highest/lowest PE = 18.44/13.88 (DPS 0.0092)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 19.63/14.37 (DPS 0.01835)

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