KLCI Stock - DRBHCOM / 1619 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	3,518,491,432 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.82-0.06)/0.1521 = 11.57 (High)
Target Price	1.67+0.06 = 1.73 (PE 11.0, EPS 0.1521, DPS 0.06)
Decision	BUY if stock price sustain above 1.85
Comment	Revenue decreased 20.8% but higher than preceding year corresponding quarter 1.9%, eps increased 25.9% but lower than preceding year corresponding quarter 42.3%, no cash generated from operating after deducted liabilities expenses hence increased borrowing and spent 20.7% of Group cash to cover other expenses, automotive division performance largely drop, others division still got around 10% growth
First Support Price	1.75
Second Support Price	1.67
Risk Rating	MODERATE

Research House

HwangDBS Target Price	3.95 (2011-07-05)
HLG Target Price	2.97 (2011-08-26)
RHB Target Price	2.95 (2011-09-21)

Accounting Ratio

Return on Equity	6.68%
Dividend Yield	3.30%
Profit Margin	9.25%
Tax Rate	25.74%
Asset Turnover	0.2545
Net Asset Value Per Share	2.63
Net Tangible Asset per share	2.52
Price/Net Tangible Asset Per Share	0.82
Cash Per Share	4.57
Liquidity Current Ratio	0.7206
Liquidity Quick Ratio	0.5875
Liquidity Cash Ratio	0.4999
Gearing Debt to Equity Ratio	4.0549
Gearing Debt to Asset Ratio	0.7672
Working capital per thousand Ringgit sale	-72.3%
Days to sell the inventory	132
Days to collect the receivables	82
Days to pay the payables	940

My notes based on 2012 quarter 1 report (number in '000):-
- Lower pbt than FY11Q1 because in the previous corresponding quarter, the Group had recognized a one-off exceptional item i.e. negative goodwill of RM71.22 million arising from accretion of equity interest in EON Bhd and lower share of results of associated companies namely Honda Malaysia Sdn. Bhd., due to shortages of CKD packs following the Japan earthquake/tsunami

- Lower revenue than FY11Q4 mainly due to lower contribution from Automotive division

- Estimate next 4Q eps after 2012 Q1 result announced = (0.0471+0.0374)*2*0.9 = 0.1521, estimate PE on current price 1.82 = 11.57(DPS 0.06)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.057+0.0374)*2*1.05 = 0.1982, estimate highest/lowest PE = 11.58/9.56 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.057*4*0.8 = 0.1824, estimate highest/lowest PE = 13.46/9.02 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0684*4*0.8 = 0.2189, estimate highest/lowest PE = 10.19/5.57 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1873*0.95 = 0.1779, estimate highest/lowest PE = 7.59/5.79 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0493*4*0.95 = 0.1873, estimate highest/lowest PE = 6.09/5.02 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0428*4 = 0.1712, estimate highest/lowest PE = 7.42/5.37 (DPS 0.04)

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