KLCI Stock - SCIENTX / 4731 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	621,000,000 (Medium)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.7-0.13)/0.3982 = 6.45 (Moderate)
Target Price	3.98+0.13 = 4.11 (PE 10.0, EPS 0.3982, DPS 0.13)
Decision	BUY
Comment	Revenue increased 11.5% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 21.1%, eps increased 7% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 21.4%, cash generated from operating enough to cover all expenses and still got 20% extra, weaker liquidity ratio at low level now, lower gearing ratio at moderate level now, all accounting ratio are good
First Support Price	2.56
Second Support Price	2.45
Risk Rating	MODERATE

Research House

TA Target Price

3.8 (2011-04-15)

Accounting Ratio

Return on Equity	15.34%
Dividend Yield	4.07%
Profit Margin	11.91%
Tax Rate	18.34%
Asset Turnover	1.0744
Net Asset Value Per Share	2.13
Net Tangible Asset per share	2.13
Price/Net Tangible Asset Per Share	1.27
Cash Per Share	0.18
Liquidity Current Ratio	1.456
Liquidity Quick Ratio	0.8453
Liquidity Cash Ratio	0.1936
Gearing Debt to Equity Ratio	0.524
Gearing Debt to Asset Ratio	0.3261
Working capital per thousand Ringgit sale	11.2%
Days to sell the inventory	62
Days to collect the receivables	58
Days to pay the payables	73

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue and pbt is contributed by both manufacturing and property division

- Started construction of its factory which will be ready by end of this year

- The machine installation and test run shall be completed by first half of 2012 and the company is expected to contribute positively thereafter

- Estimate next 4Q eps after 2011 Q3 result announced = 0.0948*4*1.05 = 0.3982, estimate PE on current price 2.7 = 6.45(DPS 0.13)

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