Company Info
| Market Capital (Capital Size) | 286,188,493 (Small) |
| Par Value | RM 0.50 |
My Analysis
| Forecast P/E now | (0.255-0.00178)/0.0082 = 30.88 (High) |
| Target Price | 0.07+0.00178 = 0.07 (PE 8.0, EPS 0.0082, DPS 0.00178) |
| Decision | Not interested unless stock price follow Bolinger upper band moving up |
| Comment | Revenue increased 5.1% and was fourth consecutive quarter increasing (higher than preceding year corresponding quarter 17.2%), eps decreased 50% but higher than preceding year corresponding quarter 44.4%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio from below moderate to low level now, all accounting ratio are good, lower inventory can indicate Group products demand decrease |
| First Support Price | 0.25 |
| Second Support Price | 0.19 |
| Risk Rating | HIGH |
Research House
| OSK Target Price | 0.23 (2011-11-29) |
Accounting Ratio
| Return on Equity | 1.14% |
| Dividend Yield | 0.70% |
| Profit Margin | 0.38% |
| Tax Rate | - |
| Asset Turnover | 1.7743 |
| Net Asset Value Per Share | 0.66 |
| Net Tangible Asset per share | 0.56 |
| Price/Net Tangible Asset Per Share | 0.44 |
| Cash Per Share | 0.04 |
| Liquidity Current Ratio | 2.7485 |
| Liquidity Quick Ratio | 1.7877 |
| Liquidity Cash Ratio | 0.4358 |
| Gearing Debt to Equity Ratio | 0.14 |
| Gearing Debt to Asset Ratio | 0.1228 |
| Working capital per thousand Ringgit sale | 12.1% |
| Days to sell the inventory | 24 |
| Days to collect the receivables | 31 |
| Days to pay the payables | 25 |
Technical Analysis
| SMA 20 | 0.256 (Uptrend 10 days) |
| SMA 50 | 0.254 (Same) |
| SMA 100 | 0.242 (Same) |
| SMA 200 | 0.278 (Downtrend) |
| MACD | 0.001418 (Downtrend 4 days) |
| MACD Histogram | -0.000390 (Downtrend 11 days) |
My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue than FY10Q3 was primarily attributed to the continued upward trend experienced in the pricing of the metallurgical coke and a general increase in sales volume. The average price of metallurgical coke saw an improvement of approximately 17% whilst sales volume grew by approximately 3% during the current quarter compared with those in the preceding year corresponding quarter. Further improving the Group‟s consolidated revenue are the continued robust pricing of the by-products seen in the current quarter compared to those in the corresponding quarter in the preceding year. The average prices of ammonium sulphate, crude benzene, coal slime and middlings during the current quarter under review have increased by approximately 108%, 29%, 34% and 16% respectively while only the prices of tar oil suffered a slight setback of 7% compared to the same quarter last year
- In tandem with the increase in the prices of commodities, the average price of our raw material (i.e. coking coal) also saw an increase of approximately 18%. Coupled with an increase in sales/production volume, the cost of sales for the current quarter under review had recorded an increase of approximately 17%
- Higher pbt than FY10Q3 due to improvements seen in the prices of metallurgical coke and the by-products as well as the relatively higher sales volume, the Group managed to record a better gross profit
- Higher revenue than FY11Q2 primarily attributed to a 2% increase in sales volume as well as higher average pricing of metallurgical coke and some of its by-products. The average prices for metallurgical coke, ammonium sulphate, crude benzene and coal slime during the current quarter under review were up by 3%, 15%, 3% and 6% respectively while tar oil and middlings were down by 7% and 1% respectively
- Higher cost than FY11Q2 was due to an increase in sales/production volume as well as the higher average coking coal price by 7%
- Lower pbt than FY11Q2 due to increase in the average price of metallurgical coke was lower than that of the increase in the average coking coal price hence recorded a slightly lower profit
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0039*2*1.05 = 0.0082, estimate PE on current price 0.255 = 30.88(DPS 0.00178)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.007, estimate highest/lowest PE = 41.17/22.34 (DPS 0.00178)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate highest/lowest PE = 49.75/29.75 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73
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