KLCI Stock - NAIM / 5073 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	620,000,000 (Medium)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.48-0.1)/0.342 = 6.96 (Moderate)
Target Price	3.42+0.1 = 3.52 (PE 10.0, EPS 0.342, DPS 0.1)
Decision	BUY
Comment	Revenue decreased 38% and also lower than preceding year corresponding quarter 2%, eps decreased 44% is second consecutive decreasing and also lower than preceding year corresponding quarter 12.7%, cash generated from operating not enough to cover investing but still got cash generated from financing activities left , weaker liquidity ratio at low level now, higher gearing ratio decreasing at moderate level now, higher receivables and payables ratio but working capital did not increase, provision of financial assistance status
First Support Price	2.35
Second Support Price	2.0
Risk Rating	MODERATE

Research House

TA Target Price	5.53 (2011-01-26)
Kenanga Target Price	4.2 (2011-03-01)
MIDF Target Price	4.65 (2011-03-01)
CIMB Target Price	2.73 (2011-05-13)
OSK Target Price	3.04 (2011-05-23)
AMMB Target Price	4.46 (2011-05-27)

Accounting Ratio

Return on Equity	13.24%
Dividend Yield	4.03%
Profit Margin	14.01%
Tax Rate	23.58%
Asset Turnover	0.5117
Net Asset Value Per Share	3.05
Net Tangible Asset per share	3.01
Price/Net Tangible Asset Per Share	0.0
Cash Per Share	0.4
Liquidity Current Ratio	1.8127
Liquidity Quick Ratio	1.1884
Liquidity Cash Ratio	0.2482
Gearing Debt to Equity Ratio	0.6333
Gearing Debt to Asset Ratio	0.3826
Working capital per thousand Ringgit sale	50.5%
Days to sell the inventory	170
Days to collect the receivables	207
Days to pay the payables	126

My notes based on 2011 quarter 1 report (number in '000):-
- The decrease of pbt was mainly contributed by lower number of properties units sold and lower stages of completion achieved for construction projects during the quarter under review

- Its oil and gas associate, Dayang Enterprise Holdings Bhd., continues to contribute positively to the earnings of the Group for the period

- Estimate next 4Q eps after 2010 Q1 result announced = 0.4023*0.85 = 0.342(0.4023 from recent fourth quarter eps), estimate PE on current price 3.14 = 9.17(DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0921*4*0.9 = 0.3316, estimate highest/lowest PE = 9.77/8.84 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2587*2*0.9 = 0.4657, estimate highest/lowest PE = 8.16/6.79 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1619*2*1.1 = 0.3562, estimate highest/lowest PE = 10.47/8.84 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2988 (10% drop from 0.332, due to profit decreasing), estimate highest/lowest PE = 11.28/8.57 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0793*4 = 0.3172, estimate highest/lowest PE = 11.41/8.89 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0902*4 = 0.3608, estimate highest/lowest PE = 9.87/6.59 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0955*4 = 0.382, estimate highest/lowest PE = 8.04/6.73 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0668*4 = 0.2672, estimate highest/lowest PE = 10.18/6.4 (DPS 0.13)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.1118*4 = 0.4472, estimate highest/lowest PE = 4.07/2.17 (DPS 0.13)

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