KLCI Stock - KURASIA / 5097 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	742,500,000 (Medium)
Par Value	RM 0.25

My Analysis

Forecast P/E now	0.495/0.0408 = 12.13 (Moderate)
Target Price	0.0408*14.0 = 0.57 (PE 14.0, EPS 0.0408)
Decision	BUY unless stock price drop below 0.47
Comment	Revenue increased 0.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 6.5%, eps increased 4.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 359.1%, no cash generated from operating due to increased assets and decreased liabilities and also no cash generated from other activities hence spent 59.1% of Group cash to cover, weaker liquidity ratio but still at moderate level now, Group division business maintaining high profit, stock price still uptrend
First Support Price	0.47
Second Support Price	0.44
Risk Rating	MODERATE

Research House

OSK Target Price	0.68 (2011-07-22)
TA Target Price	0.595 (2011-08-17)

Accounting Ratio

Return on Equity	3.84%
Dividend Yield	-
Profit Margin	7.19%
Tax Rate	27.32%
Asset Turnover	0.4343
Net Asset Value Per Share	0.26
Net Tangible Asset per share	0.26
Price/Net Tangible Asset Per Share	1.81
Cash Per Share	0.04
Liquidity Current Ratio	2.9779
Liquidity Quick Ratio	1.0682
Liquidity Cash Ratio	0.083
Gearing Debt to Equity Ratio	5.7657
Gearing Debt to Asset Ratio	0.8522
Working capital per thousand Ringgit sale	109.8%
Days to sell the inventory	495
Days to collect the receivables	189
Days to pay the payables	77

My notes based on 2011 quarter 2 report (number in '000):-
- Higher pbt than FY10Q2 mainly due to improved underwriting and investment performances. Gross premium rose by 1.5% year-on-year, driven by non-motor segment, which posted a growth rate of 16%

- Lower pbt than FY11Q1 mainly due to higher reinsurance premium outwards arising from the one-time cost incurred in carrying out a loss portfolio transfer exercise in June 2011

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0101*4*1.01 = 0.0408, estimate PE on current price 0.495 = 12.13
- Estimate next 4Q eps after 2011 Q1 result announced = 0.021*1.01 = 0.0212, estimate highest/lowest PE = 27.36/17.69
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0055*4 = 0.021(profit margin 3% per quarter), estimate highest/lowest PE = 23.1/15.48
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0081*4 = 0.0324(profit margin 4% per quarter), estimate highest/lowest PE = 12.96/10.49
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0182*2 = 0.0364, estimate highest/lowest PE = 12.23/10.16
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0233*2 = 0.0466, estimate highest/lowest PE = 12.23/9.33
- Estimate next 4Q eps after 2009 Q6 result announced = 0.0753, estimate highest/lowest PE = 8.9/6.71
- Estimate next 4Q eps after 2009 Q5 result announced = 0.0216*4 = 0.0864, estimate highest/lowest PE = 9.32/7.29
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0287*4 = 0.1148, estimate highest/lowest PE = 6.88/4.53
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0177*4 = 0.0708, estimate highest/lowest PE = 8.4/4.87

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