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Sunday, September 18, 2011

KLCI Stock - HUAAN / 2739 - 2011 Quarter 2

Company Info
Market Capital (Capital Size)252,519,258 (Small)
Par ValueRM 0.50

My Analysis
Forecast P/E now(0.225-0.00178)/0.0070 = 31.89 (High)
Target Price0.06+0.00178 = 0.06 (PE 8.0, EPS 0.0070, DPS 0.00178)
DecisionNot interested unless stock price sustain above 0.25
Revenue increased 3.9% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 1.6%, eps decreased 70.4% but recovered from loss over preceding year corresponding quarter, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, slightly higher gearing ratio at below moderate level now, all accounting ratio are good
First Support Price0.225
Second Support Price0.2
Risk RatingHIGH

Research House
OSK Target Price0.32 (2011-05-20)

Accounting Ratio
Return on Equity1.12%
Dividend Yield0.79%
Profit Margin0.80%
Tax Rate-
Asset Turnover1.6888
Net Asset Value Per Share0.62
Net Tangible Asset per share0.53
Price/Net Tangible Asset Per Share0.44
Cash Per Share0.03
Liquidity Current Ratio2.0762
Liquidity Quick Ratio1.2264
Liquidity Cash Ratio0.2541
Gearing Debt to Equity Ratio0.2119
Gearing Debt to Asset Ratio0.1749
Working capital per thousand Ringgit sale11.1%
Days to sell the inventory32
Days to collect the receivables33
Days to pay the payables38

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue than FY10Q2 primarily attributed to the continued upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume. The average price of metallurgical coke saw an improvement of approximately 1% whilst sales volume grew by approximately 8%. The average prices of ammonium sulphate, crude benzene, tar oil, coal slime and middlings have increased by approximately 88%, 24%, 1%, 11% and 16%

- Despite the improvements seen in the prices of metallurgical coke and the by-products as well as the relatively higher sales volume, the persistently lofty average price for raw materials and thus the production costs have resulted in lower gross profit

- Lower revenue than FY11Q1 primarily attributed to a 2% reduction in sales volume as well as lower average pricing of metallurgical coke and some of its by-products. The average prices for metallurgical coke, tar oil and middlings during the current quarter under review were down by 2%, 10%, and 1% respectively

- Higher pbt than FY11Q1 due to a reduction in sales/production volume as well as the easing of the average coking coal price by 5%

- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate PE on current price 0.225 = 31.89(DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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