KLCI Stock - EKSONS / 9016 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	177,350,040 (Small)
Par Value	RM 0.80

My Analysis

Forecast P/E now	(1.08-0.05)/0.1206 = 8.54 (Moderate)
Target Price	1.09+0.05 = 1.14 (PE 9.0, EPS 0.1206, DPS 0.05)
Decision	Not interested unless stock price below SMA20 and got stronger buying volume than selling
Comment	Revenue decreased 56.6% and also lower than preceding year corresponding quarter 44.4%, eps decreased 88.4% and also lower than preceding year corresponding quarter 73.7%, cash generated from operating more than enough to cover all expenses, weaker liquidity ratio but still at high level now, higher gearing ratio at below moderate level now, property division growing, timber division still unstable
First Support Price	1.0
Second Support Price	0.9
Risk Rating	MODERATE

Research House

CIMB Target Price

1.87 (2011-04-08)

Accounting Ratio

Return on Equity	6.88%
Dividend Yield	4.63%
Profit Margin	6.43%
Tax Rate	-
Asset Turnover	0.6696
Net Asset Value Per Share	2.31
Net Tangible Asset per share	2.15
Price/Net Tangible Asset Per Share	0.48
Cash Per Share	0.56
Liquidity Current Ratio	3.1907
Liquidity Quick Ratio	1.33
Liquidity Cash Ratio	0.9706
Gearing Debt to Equity Ratio	0.2477
Gearing Debt to Asset Ratio	0.1886
Working capital per thousand Ringgit sale	61.7%
Days to sell the inventory	213
Days to collect the receivables	33
Days to pay the payables	34

Technical Analysis

SMA 20	1.052 (Uptrend 20 days)
SMA 50	1.035 (Same)
SMA 100	1.056 (Same)
SMA 200	1.133 (Downtrend)
MACD	0.002847 (Uptrend 25 days)
MACD Histogram	0.008535 (Uptrend 19 days)

My notes based on 2012 quarter 2 report (number in '000):-
- Lower revenue and pbt mainly due to Middle East and North Africa markets during the fasting month of Ramadan and the festive period(FY12Q1) and high stock levels in major plywood markets as well as economic uncertainties in Europe affected the global plywood market as buyers go into a cautious buying mode which saw demand for plywood down trending in recent months

- Estimate next 4Q eps after 2012 Q2 result announced = 0.1206, estimate PE on current price 1.08 = 8.54(DPS 0.05)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1206*1.2 = 0.1447, estimate highest/lowest PE = 7.74/6.53 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.1096*1.1 = 0.1206, estimate highest/lowest PE = 10.74/7.96 (DPS 0.025)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0261*4*1.05 = 0.1096, estimate highest/lowest PE = 14.1/9.35 (DPS 0.025)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0334*4 = 0.1336(use profit margin 6% from 93k revenue), estimate highest/lowest PE = 8.76/6.96 (DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0342*4 = 0.1368(use profit margin 8% from 70k revenue), estimate highest/lowest PE = 8.04/6.51 (DPS 0.05) (Amendment)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.11*0.9 = 0.099(0.11 is year 2010 cum_eps excluded 9.9 million and 10% negative adjustment for those tax refund), estimate highest/lowest PE = 8.18/7 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.11, estimate highest/lowest PE = 9.82/7.36 (DPS 0.02)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1, estimate highest/lowest PE = 8.95/7.5 (DPS 0.02)

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