KLCI Stock - EKSONS / 9016 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	172,423,650 (Small)
Par Value	RM 0.80

My Analysis

Forecast P/E now	(1.05-0.05)/0.1447 = 6.91 (Moderate)
Target Price	1.30+0.05 = 1.35 (PE 9.0, EPS 0.1447, DPS 0.05)
Decision	BUY if stock price sustain above 1.05
Comment	Revenue increased 43.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 69.6%, eps increased 523.7% and also higher than preceding year corresponding quarter 96.1%, cash generated from operating more than enough to cover all expenses, stronger liquidity ratio at high level now, slightly higher gearing ratio at below moderate level now, inventory ratio slightly high, property division growing, benefit from plywood prices uptrend
First Support Price	1.05
Second Support Price	0.985
Risk Rating	MODERATE

Research House

CIMB Target Price

1.87 (2011-04-08)

Accounting Ratio

Return on Equity	8.49%
Dividend Yield	4.76%
Profit Margin	19.09%
Tax Rate	12.36%
Asset Turnover	0.7854
Net Asset Value Per Share	2.3
Net Tangible Asset per share	2.14
Price/Net Tangible Asset Per Share	0.5
Cash Per Share	0.67
Liquidity Current Ratio	3.6301
Liquidity Quick Ratio	1.8041
Liquidity Cash Ratio	1.4363
Gearing Debt to Equity Ratio	0.2018
Gearing Debt to Asset Ratio	0.1596
Working capital per thousand Ringgit sale	53.4%
Days to sell the inventory	150
Days to collect the receivables	23
Days to pay the payables	29

My notes based on 2012 quarter 1 report (number in '000):-
- The higher turnover and pbt in Timber division mainly due to higher plywood sales volume and higher selling prices

- Property development division recorded better performance than FY11Q1 due to in the corresponding quarter of the previous financial year no revenue was recognised as construction work had just commenced and there was no progress billings and higher marketing and management expenses

- Estimate next 4Q eps after 2012 Q1 result announced = 0.1206*1.2 = 0.1447, estimate PE on current price 1.05 = 6.91(DPS 0.05)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.1096*1.1 = 0.1206, estimate highest/lowest PE = 10.74/7.96 (DPS 0.025)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0261*4*1.05 = 0.1096, estimate highest/lowest PE = 14.1/9.35 (DPS 0.025)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0334*4 = 0.1336(use profit margin 6% from 93k revenue), estimate highest/lowest PE = 8.76/6.96 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0342*4 = 0.1368(use profit margin 8% from 70k revenue), estimate highest/lowest PE = 8.04/6.51 (DPS 0.05) (Amendment)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.11*0.9 = 0.099(0.11 is year 2010 cum_eps excluded 9.9 million and 10% negative adjustment for those tax refund), estimate highest/lowest PE = 8.18/7 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.11, estimate highest/lowest PE = 9.82/7.36 (DPS 0.02)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1, estimate highest/lowest PE = 8.95/7.5 (DPS 0.02)

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