KLCI Stock - JOBST / 0058 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	879,859,890 (Medium)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(2.73-0.06)/0.1518 = 17.59 (Moderate)
Target Price	3.04+0.06 = 3.10 (PE 20.0, EPS 0.1518, DPS 0.06)
Decision	Not interested unless stock price back to uptrend
Comment	Revenue increased 14.5% and also higher than preceding year corresponding quarter 21.7%, eps decreased 0.9% but higher than preceding year corresponding quarter 28.8%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, higher gearing ratio at below moderate level now, higher payables ratio, all segment business compared to preceding year also growth but compared to last 3 quarter is slow down
First Support Price	2.73
Second Support Price	2.5
Risk Rating	MODERATE

Research House

OSK Target Price	2.32 (2011-05-19)
HwangDBS Target Price	3.6 (2011-06-08)
CIMB Target Price	3.77 (2011-07-18)

Accounting Ratio

Return on Equity	25.91%
Dividend Yield	2.20%
Profit Margin	48.88%
Tax Rate	21.31%
Asset Turnover	0.5413
Net Asset Value Per Share	0.58
Net Tangible Asset per share	0.58
Price/Net Tangible Asset Per Share	4.95
Cash Per Share	0.26
Liquidity Current Ratio	2.1286
Liquidity Quick Ratio	2.1286
Liquidity Cash Ratio	1.7796
Gearing Debt to Equity Ratio	0.2489
Gearing Debt to Asset Ratio	0.1971
Working capital per thousand Ringgit sale	40.9%
Days to sell the inventory	-
Days to collect the receivables	46
Days to pay the payables	184

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue mainly due to higher sales reflecting higher recruitment activities

- Results from operating activities and profit before taxation (“PBT”) rose 11.5% and 12.5% respectively in tandem with the higher revenues. Operating expenses increased by 26.4% mainly due to higher staff costs and marketing expenses

- Estimate next 4Q eps after 2010 Q2 result announced = (0.0349+0.041)*2 = 0.1518, estimate PE on current price 2.73 = 17.59(DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1441, estimate highest/lowest PE = 20.33/17.63 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 19.85/16.59 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.51/18.42 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.78/13.98 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0991 (5% grow from 0.0944), estimate highest/lowest PE = 20.66/18.54 (DPS 0.0425)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0895 (around 5% grow from 0.085), estimate highest/lowest PE = 23.8/16.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0892, estimate highest/lowest PE = 17.49/15.02 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.084, estimate highest/lowest PE = 16.49/13.63 (DPS 0.035)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0899, estimate highest/lowest PE = 14.07/11.4 (DPS 0.035)

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