KLCI Stock - HSL / 6238 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	734,171,760 (Medium)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(1.26-0.026)/0.1464 = 8.43 (Moderate)
Target Price	1.76+0.026 = 1.78 (PE 12.0, EPS 0.1464, DPS 0.026)
Decision	Not interested unless stock price sustain above 1.3
Comment	Revenue increased 20.4% and also higher than preceding year corresponding quarter 33.8%, eps increased 18.5% and also higher than preceding year corresponding quarter 15.6%, cash generated from operating is more than enough to cover all expenses, slightly weaker liquidity ratio at low level now, higher gearing ratio from moderate to above moderate level now, receivables and payables ratio got slightly high
First Support Price	1.2
Second Support Price	1.1
Risk Rating	MODERATE

Research House

Maybank Target Price	2.3 (2011-01-25)
AMMB Target Price	2.3 (2011-05-24)
MIDF Target Price	2.3 (2011-05-26)
OSK Target Price	2.5 (2011-05-26)
HLG Target Price	2.44 (2011-08-26)
RHB Target Price	1.77 (2011-10-03)

Accounting Ratio

Return on Equity	22.80%
Dividend Yield	1.90%
Profit Margin	18.77%
Tax Rate	25.24%
Asset Turnover	0.879
Net Asset Value Per Share	0.67
Net Tangible Asset per share	0.67
Price/Net Tangible Asset Per Share	2.21
Cash Per Share	0.24
Liquidity Current Ratio	1.7997
Liquidity Quick Ratio	1.6345
Liquidity Cash Ratio	0.542
Gearing Debt to Equity Ratio	0.7044
Gearing Debt to Asset Ratio	0.4132
Working capital per thousand Ringgit sale	35.4%
Days to sell the inventory	33
Days to collect the receivables	177
Days to pay the payables	191

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to better performance from all division

- Estimate next 4Q eps after 2011 Q2 result announced = (0.0378+0.0319)*2*1.05 = 0.1464, estimate PE on current price 1.26 = 8.43(DPS 0.026)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1533*0.97 = 0.1487, estimate highest/lowest PE = 11.73/8.57 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0697*2*1.1 = 0.1533, estimate highest/lowest PE = 12.49/11.05 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0574*2*1.1 = 0.1263, estimate highest/lowest PE = 15.08/11.99 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 14.95/11.49 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 13.88/11.05 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0281*4 = 0.1124, estimate highest/lowest PE = 11.96/8.75 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0233*4 = 0.0932, estimate highest/lowest PE = 13.13/9.7 (DPS 0.016)

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