KLCI Stock - DAYANG / 5141 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	836,000,000 (Medium)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.52-0.1)/0.1751 = 8.11 (Moderate)
Target Price	2.10+0.1 = 2.20 (PE 12.0, EPS 0.1751, DPS 0.1)
Decision	BUY if stock price sustain at next uptrend
Comment	Revenue increased 18.4% and is sixth consecutive quarter increasing(higher than preceding year corresponding quarter 74.7%), eps increased 24.9% and also higher than preceding year corresponding quarter 34.8%, cash generated from operating not enough to cover financing expenses hence generated cash from investment and financing activities to cover other expenses, weaker liquidity ratio from strong to high level now, lower gearing ratio at below moderate level now, receivables and payables ratio got slightly high
First Support Price	1.5
Second Support Price	1.4
Risk Rating	MODERATE

Research House

HwangDBS Target Price	2.7 (2011-04-19)
OSK Target Price	2.8 (2011-06-10)
ECM Target Price	2.16 (2011-08-24)
RHB Target Price	1.55 (2011-10-04)

Accounting Ratio

Return on Equity	19.27%
Dividend Yield	6.58%
Profit Margin	30.58%
Tax Rate	19.40%
Asset Turnover	0.5262
Net Asset Value Per Share	0.99
Net Tangible Asset per share	0.99
Price/Net Tangible Asset Per Share	1.85
Cash Per Share	0.34
Liquidity Current Ratio	3.9288
Liquidity Quick Ratio	3.9142
Liquidity Cash Ratio	2.1297
Gearing Debt to Equity Ratio	0.2677
Gearing Debt to Asset Ratio	0.2112
Working capital per thousand Ringgit sale	76.7%
Days to sell the inventory	2
Days to collect the receivables	170
Days to pay the payables	104

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue mainly due to higher value of work orders received and performed

- Compared to FY10Q2, 63% in view of the fact that the work orders in the current quarter have a slightly lower profit margin contribution

- Compared to FY11Q1, 36% in view of the fact that the work orders in the current quarter have a higher profit margin contribution

- Estimate next 4Q eps after 2011 Q2 result announced = (0.0442+0.0354)*2*1.1 = 0.1751, estimate PE on current price 1.52 = 8.11(DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0354*4*1.2 = 0.1699, estimate highest/lowest PE = 11.89/9.3 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0326(17927/550000)*4*1.1 = 0.1434, estimate highest/lowest PE = 15.06/12.9 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0526*4*1.1 = 0.2314, estimate highest/lowest PE = 13.22/12.14 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1239*1.1 = 0.1363 (0.1239 is recent 4Q cum_eps), estimate highest/lowest PE = 21.94/14.16 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.129/4(average eps from recent 4Q)*0.9 = 0.1161 (10% drop year-to-year), estimate highest/lowest PE = 16.67/12.79 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1237*0.9 = 0.1113(10% drop year-to-year), estimate highest/lowest PE = 19.14/14.82 (DPS 0.05, correction to last Q estimated)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1246, estimate highest/lowest PE = 16.21/9.71 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1548, estimate highest/lowest PE = 8.98/6.91 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1338, estimate highest/lowest PE = 8.67/3.73 (DPS 0.14)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.15, estimate highest/lowest PE = 7.87/ (DPS 0.14)

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