KLCI Stock - MYEG / 0138 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	363,635,855 (Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.605-0.011)/0.0474 = 12.53 (High)
Target Price	0.57+0.011 = 0.58 (PE 12.0, EPS 0.0474, DPS 0.011)
Decision	Not interested unless stock price sustain above 0.66
Comment	Revenue decreased 9.6% but higher than preceding year corresponding quarter 4.7%, eps increased 25.7% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 36.1%, cash generated from operating more than enough for financing expenses but not enough for investing expenses hence increased borrowings and spent 39.6% of Group cash to cover, weaker liquidity ratio from strong to moderate level now, higher gearing ratio from low to below moderate level now, receivables ratio got slightly high, benefit from introduced new services
First Support Price	0.59
Second Support Price	0.57
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	22.67%
Dividend Yield	1.82%
Profit Margin	44.49%
Tax Rate	0.55%
Asset Turnover	0.5755
Net Asset Value Per Share	0.17
Net Tangible Asset per share	0.15
Price/Net Tangible Asset Per Share	4.07
Cash Per Share	0.01
Liquidity Current Ratio	2.0213
Liquidity Quick Ratio	2.0213
Liquidity Cash Ratio	0.3647
Gearing Debt to Equity Ratio	0.2107
Gearing Debt to Asset Ratio	0.174
Working capital per thousand Ringgit sale	21.3%
Days to sell the inventory	-
Days to collect the receivables	126
Days to pay the payables	73

My notes based on 2011 quarter 4 report (number in '000):-
- The increase in revenue and PAT are primarily attributable to:-
i) an overall increase in volume from all segment of services due to the ongoing marketing campaign which has enhanced MYEG’s brand name
ii) the launch of the new online maid permit renewal services with the Immigration Department

- However, this was offset primarily by the increase in marketing expenses, personnel related costs, depreciation and amortisation expenses to support an increase in transaction volumes in FY2011 in addition to an increase in pre-operating expenses for new services to be introduced in the near future

- Estimate next 4Q eps after 2011 Q4 result announced = (0.0105+0.0132)*2 = 0.0474, estimate PE on current price 0.605 = 12.53(DPS 0.006)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0105*4*1.1 = 0.0462, estimate highest/lowest PE = 16.75/12.64 (DPS 0.011)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0097*4*1.1 = 0.042, estimate highest/lowest PE = 19.62/16.29 (DPS 0.006)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.032*1.1 = 0.0352, estimate highest/lowest PE = 26.7/20.45 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0097*4*1.1 = 0.0427, estimate highest/lowest PE = 19.32/16.16 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0088*4 = 0.0352, estimate highest/lowest PE = 24.57/14.91 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 20.57/12.66 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0074*4 = 0.0296, estimate highest/lowest PE = 18.44/13.88 (DPS 0.0092)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 19.63/14.37 (DPS 0.01835)

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