__Company Info__Market Capital (Capital Size) | 12,000,924,320 (Very Large) |

Par Value | RM 1.00 |

__My Analysis__Forecast P/E now | (12.08-0.85)/0.852 = 13.18 (Moderate) |

Target Price | 12.78+0.85 = 13.63 (PE 15.0, EPS 0.852, DPS 0.85) |

Decision | BUY |

Comment | Revenue continuous increasing since FY09Q4, eps second consecutive increasing and also higher than preceding year corresponding quarter, free and positive net cash flow increasing, low liquidity ratio, moderate gearing ratio, all accounting period are good, crude oil price increasing |

First Support Price | 10.8 |

Second Support Price | 10.0 |

Risk Rating | MODERATE |

__Research House__CIMB Target Price | 14.7 (2010-11-16) |

TA Target Price | 12.96 (2011-01-06) |

__Accounting Ratio__Return on Equity | 16.42% |

Dividend Yield | 4.97% |

Profit Margin | 5.17% |

Tax Rate | 27.06% |

Asset Turnover | 2.7786 |

Net Asset Value Per Share | 4.66 |

Net Tangible Asset per share | 4.66 |

Price/Net Tangible Asset Per Share | 2.39 |

Cash Per Share | 1.45 |

Liquidity Current Ratio | 1.3004 |

Liquidity Quick Ratio | 1.0286 |

Liquidity Cash Ratio | 0.4795 |

Gearing Debt to Equity Ratio | 0.6796 |

Gearing Debt to Asset Ratio | 0.4026 |

Working capital per thousand Ringgit sale | 4.1% |

Days to sell the inventory | 14 |

Days to collect the receivables | 28 |

Days to pay the payables | 50 |

__My notes based on 2011 quarter 2 report (number in '000):-__- Group revenue for the quarter and period ended 30 September 2010 increased by RM344.3 million and RM1020.9 million to RM5496.3 million and RM10952.8 million respectively, from the results of the corresponding period last year. The increases resulted from higher product average selling prices and higher sales volume

- Group pbt for the quarter and period ended 30 September 2010 increased by RM8.4 million and RM3.5 million to RM284.8 million and RM561.5 million respectively, from the corresponding period last year due to lower operating expenditures

- The Group revenue for the current quarter was RM5496.3 million, an increase of RM39.8 million from the results of the preceding quarter. The increase in revenue was due to higher sales volume

- Group pbt for the current quarter was RM284.3 million, an increase of RM7.1 million compared to the preceding quarter pbt of RM277.2 million mainly due to higher gross profit rising from higher sales volume and lower average product costs

- Estimate next 4Q eps after 2011 Q2 result announced = 0.2068*4*1.03 = 0.852, estimate PE on current price 12.08 = 13.18(DPS 0.85)

- Estimate next 4Q eps after 2011 Q1 result announced = 0.7579*1.05 = 0.7958, estimate highest/lowest PE = 14.2/11.96 (DPS 0.6)

- Estimate next 4Q eps after 2010 Q4 result announced = 0.7579*0.95 = 0.72(5% drop due to lower gross profit compared to the preceding quarter), estimate highest/lowest PE = 13.81/11.26 (DPS 0.6)

- Estimate next 4Q eps after 2010 Q3 result announced = 0.1885*4 = 0.754, estimate highest/lowest PE = 11.63/10.84 (DPS 0.48)

- Estimate next 4Q eps after 2010 Q2 result announced = 0.2005*4 = 0.802, estimate highest/lowest PE = 10.66/10.06 (DPS 0.48)

- Estimate next 4Q eps after 2010 Q1 result announced = 0.2067*4 = 0.8268, estimate highest/lowest PE = 10.52/9.65 (DPS 0.45)

- Estimate next 4Q eps after 2009 Q4 result announced = 0.1735*4 = 0.694, estimate highest/lowest PE = 11.84/10.73 (DPS 0.45)

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