KLCI Stock - GTRONIC / 7022 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	266,168,509 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.995-0.045)/0.1141 = 8.33 (Moderate)
Target Price	1.03+0.045 = 1.07 (PE 9.0, EPS 0.1141, DPS 0.045)
Decision	Not interested unless stock price break resistance 1.04
Comment	Revenue increased 3.3% and also higher than preceding year corresponding quarter 0.2%, eps increased 17% but lower than preceding year corresponding quarter 1.4%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, higher gearing ratio at below moderate level now, all accounting ratio are good
First Support Price	1.0
Second Support Price	0.9
Risk Rating	MODERATE

Research House

MIDF Target Price

1.4 (2011-04-27)

Accounting Ratio

Return on Equity	12.29%
Dividend Yield	6.18%
Profit Margin	12.18%
Tax Rate	10.98%
Asset Turnover	0.92
Net Asset Value Per Share	0.94
Net Tangible Asset per share	0.94
Price/Net Tangible Asset Per Share	1.06
Cash Per Share	0.3
Liquidity Current Ratio	2.6704
Liquidity Quick Ratio	2.4385
Liquidity Cash Ratio	1.5209
Gearing Debt to Equity Ratio	0.2346
Gearing Debt to Asset Ratio	0.19
Working capital per thousand Ringgit sale	31.1%
Days to sell the inventory	18
Days to collect the receivables	62
Days to pay the payables	61

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue & pbt than FY10Q2 due to slightly better volume loadings

- Higher revenue & pbt than FY10Q2 due to continuous higher volume loadings from some of the Group’s key customers. The higher net profit is also caused by one-off events in quarter 1 i.e. Chinese New Year shutdown and lesser working days

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0282*3*1.05+0.0241*1.05 = 0.1141, estimate PE on current price 0.995 = 8.33(DPS 0.045)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1139*1.1 = 0.1253, estimate highest/lowest PE = 7.53/7.05 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0326*4 = 0.1304(no decrease due to high tax expenses), estimate highest/lowest PE = 8.46/6.85 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0326*4 = 0.1304, estimate highest/lowest PE = 8.97/7.67 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.026*4 = 0.104(0.026 is average of latest recent quarter), estimate highest/lowest PE = 13.94/8.94 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0904+0.0007+(0.0911*0.05) = 0.0957(adjustment from 0.0233-0.0226 and 5% grow adjustment), estimate highest/lowest PE = 16.61/12.85 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0226*4 = 0.0904, estimate highest/lowest PE = 18.36/9.07 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0183*4 = 0.0732, estimate highest/lowest PE = 15.64/8.74 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0137*4 = 0.0548, estimate highest/lowest PE = 15.78/13.05 (DPS 0.025)

GTRONIC latest news (English)

GTRONIC latest news (Chinese)