KLCI Stock - BPURI / 5932 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	126,844,336 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.13-0.04)/0.1102 = 9.89 (Moderate)
Target Price	1.10+0.04 = 1.14 (PE 10.0, EPS 0.1102, DPS 0.04)
Decision	Not interested unless stock price can sustain above 1.17
Comment	Revenue increased 4.1% and also higher than preceding year corresponding quarter 12.5%, eps increased 82.6% and also higher than preceding year corresponding quarter 19.1%, cash generated from operating not enough to cover liabilities expenses hence still increased borrowings, slightly weaker liquidity ratio at low level now, higher gearing ratio at very high level now, receivables and payables ratio got slightly high, decreasing of current contract work in progress value
First Support Price	1.1
Second Support Price	1.04
Risk Rating	MODERATE

Research House

Kenanga Target Price	1.5 (2011-07-28)
Wilson & York Target Price	1.6 (2011-08-24)

Accounting Ratio

Return on Equity	9.90%
Dividend Yield	3.54%
Profit Margin	1.47%
Tax Rate	7.12%
Asset Turnover	1.6244
Net Asset Value Per Share	1.06
Net Tangible Asset per share	1.06
Price/Net Tangible Asset Per Share	1.06
Cash Per Share	0.7
Liquidity Current Ratio	1.0332
Liquidity Quick Ratio	1.0113
Liquidity Cash Ratio	0.1196
Gearing Debt to Equity Ratio	5.6215
Gearing Debt to Asset Ratio	0.8348
Working capital per thousand Ringgit sale	1.7%
Days to sell the inventory	4
Days to collect the receivables	162
Days to pay the payables	102

My notes based on 2011 quarter 2 report (number in '000):-
- The quarry and ready mix concrete division recorded better result mainly from the road paving works

- The performance of polyol division was affected by lack of export market, higher cost of raw materials and intense competition in the local market

- The current value of contract work in progress is approximately RM2.4 billion

- Launching development projects in Klang Valley, Johor Bahru and Kota Kinabalu with an estimated projected gross development value of more than RM800 million

- The Group has also ventured into power supply to PT Perusahaan Listrik Negara (State Electricity Company owned by Indonesia government). We have invested into 5 power plants of 2MW each and this would contribute positively to the Group’s earnings in the future

- Estimate next 4Q eps after 2011 Q2 result announced = (0.0356+0.0195)*2 = 0.1102, estimate PE on current price 1.13 = 9.89(DPS 0.04)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.028+0.0195)*2 = 0.095, estimate highest/lowest PE = 12.43/10.53 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.028*4*1.05 = 0.1176, estimate highest/lowest PE = 11.14/9.69 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1, estimate highest/lowest PE = 16.1/11.9 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0463*2 = 0.0926, estimate highest/lowest PE = 14.15/11.23 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0828(10% grow from 0.0753, added adjustment from last quarter estimated), estimate highest/lowest PE = 18.12/11.59 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0781(10% grow from 0.071), estimate highest/lowest PE = 16.26/9.8 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.078, estimate highest/lowest PE = 10.9/8.91 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.06, estimate highest/lowest PE = 15.17/11.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0484, estimate highest/lowest PE = 18.39/15.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0465, estimate highest/lowest PE = 19.78/14.19 (DPS 0.04)

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