KLCI Stock - SCIENTX / 4731 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	529,000,000 (Medium)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.3-0.05)/0.3602 = 6.25 (Moderate)
Target Price	3.60+0.05 = 3.65 (PE 10.0, EPS 0.3602, DPS 0.05)
Decision	BUY
Comment	Revenue decreased 5.6% but higher than preceding year corresponding quarter 7.1%, eps increased 1.9% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 16.7%, cash generated from operating more than enough to cover all expenses, slightly stronger liquidity ratio at low level now, lower gearing ratio from moderate to below moderate level now, all accounting ratio are good, lower receivables can indicate sales slow down in Manufacturing division, property development cost also no significant increase which can indicate no new project
First Support Price	2.25
Second Support Price	2.14
Risk Rating	MODERATE

Research House

TA Target Price

2.9 (2011-09-22)

Accounting Ratio

Return on Equity	15.26%
Dividend Yield	2.17%
Profit Margin	12.65%
Tax Rate	16.04%
Asset Turnover	1.1089
Net Asset Value Per Share	2.17
Net Tangible Asset per share	2.17
Price/Net Tangible Asset Per Share	0.97
Cash Per Share	0.19
Liquidity Current Ratio	1.5425
Liquidity Quick Ratio	0.8142
Liquidity Cash Ratio	0.2248
Gearing Debt to Equity Ratio	0.4685
Gearing Debt to Asset Ratio	0.302
Working capital per thousand Ringgit sale	12.3%
Days to sell the inventory	69
Days to collect the receivables	49
Days to pay the payables	71

My notes based on 2011 quarter 4 report (number in '000):-
- Higher revenue and pbt than FY10Q4 was contributed by both manufacturing and property division

- Higher pbt than FY11Q3 mainly higher contribution from Manufacturing division despite lower in Property Development

- Estimate next 4Q eps after 2011 Q4 result announced = 0.0948*4*0.95 = 0.3602, estimate PE on current price 2.3 = 6.25(DPS 0.13)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0948*4*1.05 = 0.3982, estimate highest/lowest PE = 6.76/4.9 (DPS 0.05)

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