KLCI Stock - NAIM / 5073 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	420,000,000 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.68-0.08)/0.1892 = 8.46 (Moderate)
Target Price	1.89+0.08 = 1.97 (PE 10.0, EPS 0.1892, DPS 0.08)
Decision	Not interested unless stock price sustain above 1.8
Comment	Revenue decreased 14.4% and was second consecutive quarter decreasing and also lower than preceding year corresponding quarter 33.6%, eps increased 56.8% but lower than preceding year corresponding quarter 21.3%, cash generated from operating and financing more than enough to cover all expenses, stronger liquidity ratio from low to high level now, lower gearing ratio at moderate level now, all accounting ratio got slightly high
First Support Price	1.6
Second Support Price	1.5
Risk Rating	HIGH

Research House

TA Target Price	5.53 (2011-01-26)
Kenanga Target Price	4.2 (2011-03-01)
MIDF Target Price	4.65 (2011-03-01)
CIMB Target Price	2.73 (2011-05-13)
OSK Target Price	3.04 (2011-05-23)
AMMB Target Price	4.46 (2011-05-27)

Accounting Ratio

Return on Equity	12.23%
Dividend Yield	5.95%
Profit Margin	20.82%
Tax Rate	11.42%
Asset Turnover	0.4736
Net Asset Value Per Share	3.13
Net Tangible Asset per share	3.09
Price/Net Tangible Asset Per Share	0.64
Cash Per Share	0.39
Liquidity Current Ratio	3.3791
Liquidity Quick Ratio	2.1999
Liquidity Cash Ratio	0.4566
Gearing Debt to Equity Ratio	0.5725
Gearing Debt to Asset Ratio	0.3592
Working capital per thousand Ringgit sale	86.7%
Days to sell the inventory	183
Days to collect the receivables	224
Days to pay the payables	112

My notes based on 2011 quarter 2 report (number in '000):-
- Lower revenue and pbt than FY10Q2 mainly due to lower stages of completion achieved for the housing and construction projects however its oil and gas associate, Dayang Enterprise Holdings Bhd continue to contribute positively to the earnings of the Group

- Higher pbt than FY11Q1 mainly due to the gain on partial disposal of equity interest in DEHB of about RM10 million

- Estimate next 4Q eps after 2010 Q2 result announced = (0.0516+0.043)*2 = 0.1892(exclude RM10 million disposal gain), estimate PE on current price 1.68 = 8.46(DPS 0.08)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.4023*0.85 = 0.342(0.4023 from recent fourth quarter eps), estimate highest/lowest PE = 7.19/5.38 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0921*4*0.9 = 0.3316, estimate highest/lowest PE = 9.77/8.84 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2587*2*0.9 = 0.4657, estimate highest/lowest PE = 8.16/6.79 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1619*2*1.1 = 0.3562, estimate highest/lowest PE = 10.47/8.84 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2988 (10% drop from 0.332, due to profit decreasing), estimate highest/lowest PE = 11.28/8.57 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0793*4 = 0.3172, estimate highest/lowest PE = 11.41/8.89 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0902*4 = 0.3608, estimate highest/lowest PE = 9.87/6.59 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0955*4 = 0.382, estimate highest/lowest PE = 8.04/6.73 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0668*4 = 0.2672, estimate highest/lowest PE = 10.18/6.4 (DPS 0.13)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.1118*4 = 0.4472, estimate highest/lowest PE = 4.07/2.17 (DPS 0.13)

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