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Sunday, September 18, 2011

KLCI Stock - HEXAGON / 7455 - 2012 Quarter 1

Company Info
Market Capital (Capital Size)26,539,049 (Very Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now0.2/0.0213 = 9.39 (High)
Target Price0.0213*4.0 = 0.09 (PE 4.0, EPS 0.0213)
DecisionNot interested unless stock price sustain above 0.24
Comment
Revenue increased 24.9% but lower than preceding year corresponding quarter 10.2%, eps reduced 94.7% loss but loss 445.8% compared to preceding year corresponding quarter, cash generated from operating not enough to cover financing expenses hence increased borrowings and spent 32% of Group cash to cover other expenses, better liquidity ratio from weak to low level now, slightly lower gearing ratio at very high level now, receivables and payables ratio are high, continuing affect by weakening of USD and Europe currencies
First Support Price0.2
Second Support Price0.18
Risk RatingHIGH

Accounting Ratio
Return on Equity-72.36%
Dividend Yield-
Profit Margin-2.72%
Tax Rate-
Asset Turnover0.7955
Net Asset Value Per Share0.38
Net Tangible Asset per share0.36
Price/Net Tangible Asset Per Share0.62
Cash Per Share0.31
Liquidity Current Ratio1.0094
Liquidity Quick Ratio0.825
Liquidity Cash Ratio0.1398
Gearing Debt to Equity Ratio6.5953
Gearing Debt to Asset Ratio0.8262
Working capital per thousand Ringgit sale0.9%
Days to sell the inventory59
Days to collect the receivables230
Days to pay the payables104

My notes based on 2012 quarter 1 report (number in '000):-
- Lower revenue than FY11Q1 and loss primarily due to lower revenue from Engineering division as most of the major projects had been completed in previous financial year

- Better performance than FY11Q4 due to significant impairment of debts and provisions in relation to FRS139 and FRS111

- Estimate next 4Q eps after 2012 Q1 result announced = 70721*4*0.01/132695 = 0.0213(if can achieve 1% profit margin from revenue), estimate PE on current price 0.2 = 9.39
- Estimate next 4Q eps after 2011 Q4 result announced = 72198*0.025/132695 = 0.0136, estimate highest/lowest PE = 26.84/12.87
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0042*4*1.05 = 0.0176, estimate highest/lowest PE = 29.55/22.73
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0065*4 = 0.026, estimate highest/lowest PE = 23.65/16.15
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0059*4 = 0.0236, estimate highest/lowest PE = 25.42/17.8

HEXAGON latest news (English)

HEXAGON latest news (Chinese)

2 comments:

带伤的人 said...

What is your conclusion? I am in Industrial line, its not a good customer for me, I don't think is a good company too... :(

cwyeoh stock analysis said...

If you see the negative ROE which sure mean this is not an earning company recently. But this company recent stock price performance (June to early of August)surprisingly is uptrend, but now back to downtrend again. Conclusion is every company stock price up is based on future prospect(everyone guess and follow people move), my post is to tell the company previous business status, so that can help to categorize the stock into different category. I watched a lot of stock price go up before good quarter result announce.

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