Sponsor by Innity

Sponsor by cwyeoh

Sponsor by Nuffnang

Tuesday, June 21, 2011

KLCI Stock - PCHEM / 5183 - 2011 Quarter 4

Company Info
Market Capital (Capital Size)56,160,000,000 (Very Large)
Par ValueRM 0.10

My Analysis
Forecast P/E now(7.02-0.19)/0.466 = 14.66 (Moderate)
Target Price7.46+0.19 = 7.65 (PE 16.0, EPS 0.466, DPS 0.19)
DecisionWatching, buy when sell volume is low
Revenue increased 11.7% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 8.9%, eps increased 0.2% and is second consecutive quarter increasing but lower than preceding year corresponding quarter 3.5%, cash generated from operating only enough to cover investing activities, expenses of financing activities mainly use the cash generated from financing activities to cover, weaker liquidity ratio but still at strong level now, higher gearing ratio but still at below moderate level now, all accounting ratio are good, oil price decreasing since April
First Support Price6.96
Second Support Price6.83

Research House
JP Morgan Target Price7.8 (2011-03-09)
CIMB Target Price10 (2011-03-28)
Credit Suisse Target Price8.5 (2011-04-05)
MIDF Target Price6.82 (2011-05-30)
OSK Target Price9.28 (2011-05-30)
AMMB Target Price8.43 (2011-06-01)
Maybank Target Price8.15 (2011-06-14)

Accounting Ratio
Return on Equity14.22%
Dividend Yield2.71%
Profit Margin29.82%
Tax Rate10.63%
Asset Turnover0.3948
Net Asset Value Per Share2.6
Net Tangible Asset per share2.31
Price/Net Tangible Asset Per Share3.1
Cash Per Share1.11
Liquidity Current Ratio4.2744
Liquidity Quick Ratio3.8735
Liquidity Cash Ratio3.0465
Gearing Debt to Equity Ratio0.4005
Gearing Debt to Asset Ratio0.272
Working capital per thousand Ringgit sale83.9%
Days to sell the inventory50
Days to collect the receivables73
Days to pay the payables99

My notes based on 2011 quarter 4 report (number in '000):-
- The increase of revenue was achieved on the back of higher realised prices across most petrochemical products. Overall, the Group’s production volume was lower due to maintenance activities during the current quarter

- Group’s operating profit declined due principally to costs incurred for maintenance activities in the current quarter. The impact of higher cost was however offset by lower tax expense and higher share of profits from associates and jointly controlled entities

- The tax expense for the current quarter was lower by RM221 million, mainly due to recognition of deferred tax assets while our share of profits from associates and jointly controlled entities grew by RM92 million, primarily due to continued strong performance by BASF PETRONAS Chemicals Sdn. Bhd

- Estimate next 4Q eps after 2011 Q4 result announced = 0.1165*4 = 0.466, estimate PE on current price 7.02 = 14.66(DPS 0.19)

- Yearly net eps, 2008 = 0.491, 2009 = 0.352, 2010 = 0.275

PCHEM latest news (English)

PCHEM latest news (Chinese)

No comments:

Post a Comment