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Wednesday, November 16, 2011

KLCI Stock - PWROOT / 7237 - 2012 Quarter 2

Company Info
Market Capital (Capital Size)159,000,000 (Small)
Par ValueRM 0.20

My Analysis
Forecast P/E now(0.53-0.04)/0.034 = 14.41 (High)
Target Price0.24+0.04 = 0.28 (PE 7.0, EPS 0.034, DPS 0.04)
DecisionBUY for dividend
Comment
Revenue increased 4.2% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 5.4%, eps decreased 46.5% and also lower than preceding year corresponding quarter 36.1%, cash generated from operating after deducted increase assets expenses not enough to cover financing expenses hence spent 15% of Group cash to cover other expenses, slightly weaker liquidity ratio at high level now, slightly higher gearing ratio at below moderate level now, higher inventory can indicate stronger demand of sales
First Support Price0.5
Second Support Price0.47
Risk RatingMODERATE

Research House
JF Apex Target Price0.61 (2011-01-26)

Accounting Ratio
Return on Equity6.02%
Dividend Yield7.55%
Profit Margin4.53%
Tax Rate-
Asset Turnover0.8225
Net Asset Value Per Share0.6
Net Tangible Asset per share0.59
Price/Net Tangible Asset Per Share0.87
Cash Per Share0.09
Liquidity Current Ratio3.4262
Liquidity Quick Ratio2.6488
Liquidity Cash Ratio0.6455
Gearing Debt to Equity Ratio0.2458
Gearing Debt to Asset Ratio0.1973
Working capital per thousand Ringgit sale52.9%
Days to sell the inventory127
Days to collect the receivables147
Days to pay the payables135

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue mainly attributable to the increase in export sales from the Group's Fast Moving Consumer Goods business

- Lower pbt mainly due to the increase in raw material costs and higher marketing expenses

- Estimate next 4Q eps after 2012 Q2 result announced = 0.0085*4 = 0.034, estimate PE on current price 0.53 = 14.41(DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 12.76/10.19 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 13.47/11.83 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

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