KLCI Stock - 3A / 0012 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	452,640,021 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(1.15-0.01)/0.0342 = 33.33 (High)
Target Price	0.34+0.01 = 0.35 (PE 10.0, EPS 0.0342, DPS 0.01)
Decision	Not interested unless MACD back to uptrend
Comment	Revenue increased 11.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 27.9%, eps increased 3.9% and was second consecutive quarter increasing but still lower than preceding year corresponding quarter 14.4%, no cash generated hence spent 67.2% to cover all expenses, stronger liquidity ratio(but not cash) at moderate level now, lower gearing ratio at below moderate level now, all accounting ratio are good, raw material increasing
First Support Price	1.1
Second Support Price	1.0
Risk Rating	HIGH

Research House

AMMB Target Price

2.13 (2011-08-01)

Accounting Ratio

Return on Equity	7.49%
Dividend Yield	1.04%
Profit Margin	3.82%
Tax Rate	-
Asset Turnover	0.9886
Net Asset Value Per Share	0.5
Net Tangible Asset per share	0.5
Price/Net Tangible Asset Per Share	2.56
Cash Per Share	0.06
Liquidity Current Ratio	2.7604
Liquidity Quick Ratio	1.9582
Liquidity Cash Ratio	0.4308
Gearing Debt to Equity Ratio	0.3749
Gearing Debt to Asset Ratio	0.2726
Working capital per thousand Ringgit sale	33.2%
Days to sell the inventory	58
Days to collect the receivables	101
Days to pay the payables	13

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue mainly due to better demand for the Group's products

- Lower pbt due to higher raw material costs and got RM1.4 million tax income in current quarter

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0107*4*0.8 = 0.0342, estimate PE on current price 1.15 = 33.33 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0153*2 = 0.0306, estimate highest/lowest PE = 60.46/45.42 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.015*4 = 0.06(base on 3% roe per quarter), estimate highest/lowest PE = 30.8/23.13 (DPS 0.012)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0286*3 = 0.0858(0.0286 is recent 2Q cum_eps, FYQ1-11 & FYQ2-11 to double as current), estimate highest/lowest PE = 22.31/17.88 (DPS 0.016)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.076, estimate highest/lowest PE = 26.89/20.32 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.076 (~30% EPS grow), estimate highest/lowest PE = 30.05/20.32 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0191*4 = 0.0764, estimate highest/lowest PE = 30.68/15.63 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0178*4 = 0.0712, estimate highest/lowest PE = 23.74/7.09 (DPS 0.01)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 21.56/11.96 (DPS 0.01)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 11.55/9.34 (DPS 0.01)

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