KLCI Stock - INGRESS / 7112 - 2012 Quarter 3

Company Info

Market Capital (Capital Size)	72,960,000 (Very Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	0.95/0.2977 = 3.19 (Moderate)
Target Price	0.2977*5.0 = 1.49 (PE 5.0, EPS 0.2977)
Decision	BUY if stock price near to SMA20 and got stronger buying volume than selling
Comment	Revenue decreased 10.3% and also lower than preceding year corresponding quarter 18.6%, eps increased 79.7% and also higher than preceding year corresponding quarter 222.4%, cash generated from operating slightly left to cover financing expenses hence generated cash from borrowing and spent 7.3% of Group cash to cover rest of the expenses, better liquidity ratio at low level now, lower gearing ratio at high level now, all accounting ratio are good, automotive division remaining good profit margin, power engineering and projects turnover, inventory increasing can indicate automotive division demand still good
First Support Price	0.85
Second Support Price	0.78
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	7.98%
Dividend Yield	-
Profit Margin	6.36%
Tax Rate	5.27%
Asset Turnover	1.1862
Net Asset Value Per Share	2.27
Net Tangible Asset per share	2.22
Price/Net Tangible Asset Per Share	0.32
Cash Per Share	0.99
Liquidity Current Ratio	1.2065
Liquidity Quick Ratio	0.9529
Liquidity Cash Ratio	0.3231
Gearing Debt to Equity Ratio	1.9758
Gearing Debt to Asset Ratio	0.5814
Working capital per thousand Ringgit sale	6.9%
Days to sell the inventory	33
Days to collect the receivables	77
Days to pay the payables	58

Technical Analysis

SMA 20	0.852 (Uptrend 31 days)
SMA 50	0.792 (Uptrend)
SMA 100	0.787 (Uptrend)
SMA 200	0.804 (Uptrend)
MACD	0.036696 (Uptrend 34 days)
MACD Histogram	0.016268 (Uptrend 33 days)

My notes based on 2012 quarter 3 report (number in '000):-
- Lower revenue due to lower revenue from all division

- Higher pbt than FY12Q2 mainly due to the recovery from the impact of the March 2011 earthquake and tsunami in Japan especially to the Thailand's automotive industry

- Estimate next 4Q eps after 2012 Q3 result announced = 247826*1.025*0.09/76800 = 0.2977(ROE 9%), estimate PE on current price 0.95 = 3.19
- Estimate next 4Q eps after 2012 Q2 result announced = 0.0228*4*1.05 = 0.0958(if deduct additional RM2 million MI), estimate highest/lowest PE = 8.72/7.36
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1151*1.05 = 0.1209(exclude RM4.7 million other income), estimate highest/lowest PE = 8.6/5.75
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0274*4*1.05 = 0.1151, estimate highest/lowest PE = 7.86/6.47
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0272*4*1.05 = 0.1142, estimate highest/lowest PE = 7.36/5.95
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1288*1.05 = 0.1352, estimate highest/lowest PE = 6.62/5.18
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0322*4 = 0.1288(0.0322 is eps after exclude 8 million from other income), estimate highest/lowest PE = 7.41/4.81
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0346*4 = 0.1384, estimate highest/lowest PE = 4.99/3.76
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0357*4 = 0.1428, estimate highest/lowest PE = 5.67/4.1
- Estimate next 4Q eps after 2010 Q2 result announced = 0.023*4 = 0.092, estimate highest/lowest PE = 9.24/3.53

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