KLCI Stock - SUPERMX / 7106 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	1,285,492,723 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(3.78-0.075)/0.3159 = 11.73 (Moderate)
Target Price	4.11+0.075 = 4.18 (PE 13.0, EPS 0.3159, DPS 0.075)
Decision	Watching now, buy when stock sell quantity is low
Comment	Revenue increased 3.7% and also higher than preceding year corresponding quarter 9.4%, eps decreased 25.4% and is fourth consecutive quarter decreasing and also largely lower than preceding year corresponding quarter 62.2%, no cash generate from operating due to increased inventories hence still increased borrowings to cover other expenses, stronger liquidity ratio at moderate level now, lower gearing ratio at moderate level now, all accounting periods are good, continuing affect by weakeaning of USD dollar against Ringgit, latex price declining from RM10.87/kg to current RM9.4/kg, Group expanding, switching part of production lines to produce more Nitrile Powder Free gloves
First Support Price	3.6
Second Support Price	3.3
Risk Rating	MODERATE

Research House

OSK Target Price	6.91 (2011-05-15)
Affin Target Price	5.67 (2011-05-16)
CIMB Target Price	5.84 (2011-05-16)
Kenanga Target Price	4 (2011-05-16)
TA Target Price	4.45 (2011-05-16)

Accounting Ratio

Return on Equity	20.64%
Dividend Yield	2.65%
Profit Margin	10.61%
Tax Rate	4.72%
Asset Turnover	0.8467
Net Asset Value Per Share	2.08
Net Tangible Asset per share	2.0
Price/Net Tangible Asset Per Share	1.98
Cash Per Share	0.22
Liquidity Current Ratio	2.2729
Liquidity Quick Ratio	1.5464
Liquidity Cash Ratio	0.3505
Gearing Debt to Equity Ratio	0.5739
Gearing Debt to Asset Ratio	0.3646
Working capital per thousand Ringgit sale	28.1%
Days to sell the inventory	67
Days to collect the receivables	97
Days to pay the payables	27

My notes based on 2011 quarter 1 report (number in '000):-
- While revenue has grown for the current quarter compared to the corresponding quarter last year, profit margins have been eroded mainly due to continuous high latex prices and unfavourable exchange rates

- Estimate next 4Q eps after 2010 Q1 result announced = 0.0718*4*1.1 = 0.3159, estimate PE on current price 3.78 = 11.73(DPS 0.075)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0962*4 = 0.3848, estimate highest/lowest PE = 11.55/9.94 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1124*4*1.1 = 0.4946, estimate highest/lowest PE = 9.31/7.77 (DPS 0.135)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1351*4*0.9 = 0.4864(correction), estimate highest/lowest PE = 10.82/7.43 (DPS 0.135)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.6576+0.0253 = 0.6829, estimate highest/lowest PE = 10.38/8.77 (DPS 0.11)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1644*4 = 0.6576, estimate highest/lowest PE = 11.16/8.24 (DPS 0.11)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1514*4 = 0.6056, estimate highest/lowest PE = 10.15/5.3 (DPS 0.0325)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0972*4 = 0.3888, estimate highest/lowest PE = 8.74/5.14 (DPS 0.0325)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0743*4 = 0.2972, estimate highest/lowest PE = 6.52/5.01 (DPS 0.0325)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.2499, estimate highest/lowest PE = 6.67/3.07 (DPS 0.0325)

SUPERMX latest news (English)

SUPERMX latest news (Chinese)

Malaysia Daily Latexx Price

USD/MYR Chart