KLCI Stock - DIGI / 6947 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	26,839,300,000 (Very Large)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(34.52-1.48)/1.764 = 18.73 (High)
Target Price	31.75+1.48 = 33.23 (PE 18.0, EPS 1.764, DPS 1.48)
Decision	Not interested unless stock price next uptrend start above 33
Comment	Revenue increased 3.5% and is continuous increasing since FY09Q2 and also is highest all the time(higher than preceding year corresponding quarter 12.5%), eps increased 23.8% and also higher than preceding year corresponding quarter 1.1%, cash generated from operating is more than enough to cover all expenses, slightly stronger liquidity ratio at weak level now, lower gearing rato at very high level now
First Support Price	33.0
Second Support Price	31.5
Risk Rating	MODERATE

Research House

BNP Paribas Target Price	30.7 (2011-05-04)
AMMB Target Price	27.35 (2011-07-15)
Kenanga Target Price	32.2 (2011-07-21)
TA Target Price	31.7 (2011-07-21)
CIMB Target Price	34 (2011-09-09)
HwangDBS Target Price	32.2 (2011-09-09)
Maybank Target Price	31.5 (2011-09-09)
MIDF Target Price	35.5 (2011-09-09)
UOB Target Price	33.9 (2011-10-14)
ECM Target Price	36.3 (2011-10-25)
HLG Target Price	31.7 (2011-10-25)
RHB Target Price	35 (2011-10-25)
OSK Target Price	31.1 (2011-10-27)

Accounting Ratio

Return on Equity	90.58%
Dividend Yield	4.43%
Profit Margin	26.22%
Tax Rate	26.61%
Asset Turnover	1.2387
Net Asset Value Per Share	1.68
Net Tangible Asset per share	0.71
Price/Net Tangible Asset Per Share	44.48
Cash Per Share	1.27
Liquidity Current Ratio	0.5578
Liquidity Quick Ratio	0.5428
Liquidity Cash Ratio	0.3796
Gearing Debt to Equity Ratio	2.6182
Gearing Debt to Asset Ratio	0.7236
Working capital per thousand Ringgit sale	-19.7%
Days to sell the inventory	4
Days to collect the receivables	26
Days to pay the payables	244

My notes based on 2011 quarter 3 report (number in '000):-
- The Group’s total revenue of RM1.5 billion marked an impressive growth of 12% from the same quarter last year; mainly precipitated by the earlier-highlighted increase in data revenue; particularly from the combined 89% growth for both mobile internet and broadband revenues, over-and-above higher revenues from the 1.4 million subscriber net additions and higher take-up of handset bundles. Current quarter ARPU of RM50 (2010: RM53) reflects the year-to-date trend

- Estimate next 4Q eps after 2011 Q3 result announced = 0.42*4*1.05 = 1.764, estimate PE on current price 34.52 = 18.73(DPS 1.48)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.4262*4*1.05 = 1.79, estimate highest/lowest PE = 17.8/15.02 (DPS 1.72)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.4262*4 = 1.7048, estimate highest/lowest PE = 16.6/15.31 (DPS 1.72)
- Estimate next 4Q eps after 2010 Q4 result announced = 1.5151*1.1 = 1.6666, estimate highest/lowest PE = 17.42/14.85 (DPS 1.63)
- Estimate next 4Q eps after 2010 Q3 result announced = 1.4051*1.1 = 1.5456, estimate highest/lowest PE = 15.11/12.46 (DPS 1.74)
- Estimate next 4Q eps after 2010 Q2 result announced = 1.3254*1.1 = 1.4579(10% grow from 1.3254), estimate highest/lowest PE = 15.85/13.04 (DPS 1.99)
- Estimate next 4Q eps after 2010 Q1 result announced = 1.3254(3% grow from 1.2868), estimate highest/lowest PE = 16.27/15.01 (DPS 2.13)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.317*4 = 1.268, estimate highest/lowest PE = 17.21/15.82 (DPS 1.78)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.3139*4 = 1.2556, estimate highest/lowest PE = 16.27/15.47 (DPS 1.77)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.3016*4 = 1.2064, estimate highest/lowest PE = 17.12/16.21 (DPS 1.75)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.3543*4 = 1.4172, estimate highest/lowest PE = 15.51/14.1 (DPS 1.62)

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