KLCI Stock - AJIYA / 7609 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	121,833,924 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.76-0.06)/0.2826 = 6.02 (Moderate)
Target Price	1.98+0.06 = 2.04 (PE 7.0, EPS 0.2826, DPS 0.06)
Decision	BUY
Comment	Revenue increased 25% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 15.5%, eps increased 96.8% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 13.2%, cash generated not even enough to cover bank borrowing repayment hence used up 33.7% to cover other expenses, stronger liquidity at high level now, lower gearing ratio at below moderate level now, all accounting periods are good
First Support Price	1.7
Second Support Price	1.6
Risk Rating	MODERATE

Research House

OSK Target Price

2.17 (2011-07-11)

Accounting Ratio

Return on Equity	7.50%
Dividend Yield	3.41%
Profit Margin	10.90%
Tax Rate	12.71%
Asset Turnover	1.0964
Net Asset Value Per Share	2.95
Net Tangible Asset per share	2.95
Price/Net Tangible Asset Per Share	0.6
Cash Per Share	0.34
Liquidity Current Ratio	3.9156
Liquidity Quick Ratio	2.5408
Liquidity Cash Ratio	0.4795
Gearing Debt to Equity Ratio	0.2749
Gearing Debt to Asset Ratio	0.177
Working capital per thousand Ringgit sale	40.7%
Days to sell the inventory	76
Days to collect the receivables	105
Days to pay the payables	48

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue and profit mainly due to better market sentiment

- Estimate next 4Q eps after 2011 Q2 result announced = 0.157*2*0.9 = 0.2826, estimate PE on current price 1.76 = 6.02(DPS 0.06)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0529*4*1.05 = 0.2222, estimate highest/lowest PE = 8.46/7.11 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.07(average eps from recent 3 quarter)*4 = 0.28, estimate highest/lowest PE = 7.46/6.25 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.08(average eps)*4*0.95 = 0.304, estimate highest/lowest PE = 6.84/6.38 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.3427, estimate highest/lowest PE = 6.19/5.46 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0816*4 = 0.3264+0.0163 = 0.3427 (5% grow from 0.3264 due to recovery from previous weak market), estimate highest/lowest PE = 6.16/4.99 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.312(2% drop from 0.3184), estimate PE on current price 2.14 = 6.67(DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.28, estimate highest/lowest PE = 6.39/5.18 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.23, estimate highest/lowest PE = 6.52/5.22 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.26, estimate highest/lowest PE = 5.15/4.46 (DPS 0.06)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.26, estimate highest/lowest PE = 4.69/3.65 (DPS 0.06)

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