KLCI Stock - SPSETIA / 8664 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	7,259,009,196 (Very Large)
Par Value	RM 0.75

My Analysis

Forecast P/E now	(4.1-0.19)/0.1722 = 22.71 (High)
Target Price	3.79+0.19 = 3.98 (PE 22.0, EPS 0.1722, DPS 0.19)
Decision	Not interested unless revenue and profit(not from investment) increase more
Comment	Revenue decreased 4.3% and is second consecutive quarter decreasing but still higher than preceding year corresponding quarter 21.4%, eps increased 48.8%(due to disposal gain) and also higher than preceding year corresponding quarter 80.1%, cash generated from operating and financing activities is more than enough to cover all expenses and still got a lot extra, stronger liquidity ratio at high level now, lower gearing ratio at moderate level now, all turnover periods still long time but offset by higher working capital, all segments especially property development result still weaker than last 2 quarter
First Support Price	4.0
Second Support Price	3.4
Risk Rating	MODERATE

Research House

CIMB Target Price	5.37 (2011-01-18)
MIDF Target Price	4 (2011-01-18)
Kenanga Target Price	5.07 (2011-02-07)
RHB Target Price	4.87 (2011-03-03)
ECM Target Price	4 (2011-03-18)
TA Target Price	4.63 (2011-03-18)
BIMB Target Price	4.05 (2011-03-21)
Maybank Target Price	4.75 (2011-04-15)
OSK Target Price	4.82 (2011-04-15)
AMMB Target Price	5.41 (2011-05-16)
HwangDBS Target Price	5.3 (2011-05-23)

Accounting Ratio

Return on Equity	12.48%
Dividend Yield	4.63%
Profit Margin	23.82%
Tax Rate	22.07%
Asset Turnover	0.3867
Net Asset Value Per Share	1.79
Net Tangible Asset per share	1.79
Price/Net Tangible Asset Per Share	2.29
Cash Per Share	0.83
Liquidity Current Ratio	3.5358
Liquidity Quick Ratio	2.56
Liquidity Cash Ratio	1.6296
Gearing Debt to Equity Ratio	0.6371
Gearing Debt to Asset Ratio	0.3892
Working capital per thousand Ringgit sale	116.9%
Days to sell the inventory	202
Days to collect the receivables	153
Days to pay the payables	124

My notes based on 2011 quarter 2 report (number in '000):-
- The higher profit includes gain from the disposal of an Investment Property of the Group

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0861*2 = 0.1722, estimate PE on current price 4.1 = 22.71(DPS 0.19)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1287*2*1.1 = 0.2831/3*2 = 0.1887, estimate highest/lowest PE = 22.92/20.56 (DPS 0.2)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.05*4*1.1 = 0.22(assume investment gain only RM6 million), estimate highest/lowest PE = 30.59/23.64 (DPS 0.2)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0439(after exclude RM48 million other income and used 27% VAT)*4*1.1 = 0.1932, estimate highest/lowest PE = 28.47/22.31 (DPS 0.15)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1841 (10% increase from 0.1674), estimate highest/lowest PE = 24.06/20.53 (DPS 0.15)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1724 (3% increase from 0.1674), estimate highest/lowest PE = 24.01/20.19 (DPS 0.14)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 26.25/21.5 (DPS 0.14)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 27.63/21 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.16, estimate highest/lowest PE = 28.56/22.81 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.16, estimate highest/lowest PE = 28.69/16.19 (DPS 0.17)

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