KLCI Stock - DIGI / 6947 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	3,102,225,000 (Large)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(3.99-0.16)/0.1598 = 23.97 (High)
Target Price	3.20+0.16 = 3.36 (PE 20.0, EPS 0.1598, DPS 0.16)
Decision	Not interested unless MACD moving back to uptrend and got very stronger buying volume than selling
Comment	Revenue increased 1.7% and is continuous increasing since FY09Q2 and also is highest all the time(higher than preceding year corresponding quarter 8.1%), eps increased 34.8% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 18.7%, cash generated from operating enough to cover all expenses, slightly higher liquidity ratio but still at weak level now, lower gearing rato but still at very high level now, payables ratio is high, maintaining very high ROE
First Support Price	3.95
Second Support Price	3.75
Risk Rating	MODERATE

Research House

BNP Paribas Target Price	3.07 (2011-05-04)
AMMB Target Price	2.74 (2011-07-15)
Kenanga Target Price	3.22 (2011-07-21)
TA Target Price	3.17 (2011-07-21)
CIMB Target Price	3.4 (2011-09-09)
HwangDBS Target Price	3.22 (2011-09-09)
UOB Target Price	3.39 (2011-10-14)
ECM Target Price	3.63 (2011-10-25)
HLG Target Price	3.17 (2012-01-20)
Maybank Target Price	3.74 (2012-01-20)
MIDF Target Price	4.35 (2012-01-20)
RHB Target Price	4.4 (2012-01-20)
OSK Target Price	4 (2012-02-23)

Accounting Ratio

Return on Equity	88.87%
Dividend Yield	29.20%
Profit Margin	25.19%
Tax Rate	-
Asset Turnover	1.2263
Net Asset Value Per Share	0.18
Net Tangible Asset per share	0.09
Price/Net Tangible Asset Per Share	43.11
Cash Per Share	0.14
Liquidity Current Ratio	0.6258
Liquidity Quick Ratio	0.5996
Liquidity Cash Ratio	0.4235
Gearing Debt to Equity Ratio	2.4457
Gearing Debt to Asset Ratio	0.7098
Working capital per thousand Ringgit sale	-16.3%
Days to sell the inventory	8
Days to collect the receivables	28
Days to pay the payables	270

Technical Analysis

SMA 20	3.998 (Uptrend 40 days)
SMA 50	3.832 (Uptrend)
SMA 100	2.391 (Uptrend)
SMA 200	-0.057 (Uptrend)
MACD (26d/12d)	0.06541 ( 0.006023 )
Signal (9)	0.089683 ( 0.006068 )
MACD Histogram	0.024273 (Bearish trend 58 days)

My notes based on 2011 quarter 4 report (number in '000):-
- Higher revenue due to revenue grew in mobile broadband/mobile internet

- Higher pat due to tax incentives related to mobile broadband network facilities

- Lower new added customer than FY11Q3 from 327k to 303k (prepaid: 287k to 264k, postpaid: 40k to 39k)

- Prepaid ARPU lower than FY11Q3 from RM43 to RM42

- Postpaid ARPU higher than FY11Q3 from RM85 to RM86

- Estimate next 4Q eps after 2011 Q4 result announced = 1411431*0.88/7775000 = 0.1598, estimate PE on current price 3.99 = 23.97(DPS 0.16)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.42*4*1.05 = 1.764, estimate highest/lowest PE = 19.23/18.66 (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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