KLCI Stock - PWROOT / 7237 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	169,500,000 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(0.565-0.02)/0.0427 = 12.76 (High)
Target Price	0.30+0.02 = 0.32 (PE 7.0, EPS 0.0427, DPS 0.02)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 14.2% and also higher than preceding year corresponding quarter 18.3%, eps increased 121.1% and also higher than preceding year corresponding quarter 423.1%, cash generated from operating not enough to cover dividend and investing activities hence still increased borrowings, stronger liquidity ratio at high level now, lower gearing ratio at below moderate level now, high payables period, inventory and payables ratio improved but still at high ratio now
First Support Price	0.55
Second Support Price	0.52
Risk Rating	HIGH

Research House

JF Apex Target Price

0.61 (2011-01-26)

Accounting Ratio

Return on Equity	6.78%
Dividend Yield	14.16%
Profit Margin	10.52%
Tax Rate	45.71%
Asset Turnover	0.8334
Net Asset Value Per Share	0.6
Net Tangible Asset per share	0.58
Price/Net Tangible Asset Per Share	0.95
Cash Per Share	0.09
Liquidity Current Ratio	3.8128
Liquidity Quick Ratio	3.111
Liquidity Cash Ratio	0.8267
Gearing Debt to Equity Ratio	0.2155
Gearing Debt to Asset Ratio	0.1773
Working capital per thousand Ringgit sale	53.1%
Days to sell the inventory	128
Days to collect the receivables	145
Days to pay the payables	159

My notes based on 2011 quarter 4 report (number in '000):-
- The increase in revenue and profit mainly due to the increase in the sales from the Group's Fast Moving Consumer Goods business in both domestic market and oversea market

- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate PE on current price 0.565 = 12.76(DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

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