KLCI Stock - MITRA / 9571 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	202,688,650 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.5-0.03)/0.0671 = 7.00 (High)
Target Price	0.47+0.03 = 0.50 (PE 7.0, EPS 0.0671, DPS 0.03)
Decision	BUY if stock price sustain above 0.46
Comment	Revenue decreased 23.5% and was fourth consecutive quarter decreasing (lower than preceding year corresponding quarter 37.4%), eps decreased 15.8% and was fourth consecutive quarter decreasing (lower than preceding year corresponding quarter 50%), low cash generated from operating after deducted assets increased expenses and cash generated from conversion of warrants to share also not enough to cover financing expenses hence Group cash dropped to more negative level, slightly lower liquidity ratio at moderate level now, slightly lower gearing ratio at moderate level now, higher property development cost indicate good sales of property, higher receivables indicate increase contract from construction division, all significant profit contribution division recorded lower result
First Support Price	0.46
Second Support Price	0.38
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	13.51%
Dividend Yield	24.00%
Profit Margin	19.54%
Tax Rate	26.50%
Asset Turnover	0.5828
Net Asset Value Per Share	2.59
Net Tangible Asset per share	2.58
Price/Net Tangible Asset Per Share	0.19
Cash Per Share	0.0
Liquidity Current Ratio	2.4525
Liquidity Quick Ratio	1.0135
Liquidity Cash Ratio	0.0021
Gearing Debt to Equity Ratio	0.5682
Gearing Debt to Asset Ratio	0.3464
Working capital per thousand Ringgit sale	66.3%
Days to sell the inventory	301
Days to collect the receivables	163
Days to pay the payables	131

My notes based on 2011 quarter 2 report (number in '000):-
- Lower revenue and pbt mainly derived from the Group's property development and construction division

- Estimate next 4Q eps after 2011 Q2 result announced = 0.021*4*0.8 = 0.0672, estimate PE on current price 0.5 = 7(DPS 0.03)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.0796+0.0812)*2*1.1 = 0.3538, estimate PE on current price 2.43 = 6.53(DPS 0.12), after split & bonus & free warrants then eps = 0.1049, price = 0.81, PE = 7.34(DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.36(due to receivables increased), estimate highest/lowest PE = 6.69/4.94 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.28, estimate highest/lowest PE = 7.43/3.75 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2*0.7*2 = 0.28, estimate highest/lowest PE = 3.25/3 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.12(average of 0.03 per quarter), estimate highest/lowest PE = 10.5/7.5 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.08(average of 0.02 per quarter if no new big project secure for construction division), estimate highest/lowest PE = 15.13/7.63 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.08, estimate highest/lowest PE = 9/7
- Estimate next 4Q eps after 2009 Q2 result announced = 0.08, estimate highest/lowest PE = 7.88/6.63
- Estimate next 4Q eps after 2009 Q1 result announced = 0.08, estimate highest/lowest PE = 7.44/5.38

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