KLCI Stock - MYEG / 0138 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	390,683,150 (Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.65-0.011)/0.0466 = 13.71 (Moderate)
Target Price	0.70+0.011 = 0.71 (PE 15.0, EPS 0.0466, DPS 0.011)
Decision	BUY if stock price below SMA20 and got stronger buying volume than selling
Comment	Revenue decreased 20.7% and was second consecutive quarter decreasing but still higher than preceding year corresponding quarter 18.2%, eps decreased 31.8% but higher than preceding year corresponding quarter 91.5%, cash generated from operating enough for all expenses, better liquidity ratio at moderate level now, slightly higher gearing ratio at below moderate level now, payables increasing
First Support Price	0.64
Second Support Price	0.59
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	25.83%
Dividend Yield	1.69%
Profit Margin	38.08%
Tax Rate	0.54%
Asset Turnover	0.5361
Net Asset Value Per Share	0.18
Net Tangible Asset per share	0.16
Price/Net Tangible Asset Per Share	3.81
Cash Per Share	0.02
Liquidity Current Ratio	2.5041
Liquidity Quick Ratio	2.5041
Liquidity Cash Ratio	0.73
Gearing Debt to Equity Ratio	0.2218
Gearing Debt to Asset Ratio	0.1815
Working capital per thousand Ringgit sale	32.4%
Days to sell the inventory	-
Days to collect the receivables	139
Days to pay the payables	111

Technical Analysis

SMA 20	0.643 (Uptrend 7 days)
SMA 50	0.64 (Same)
SMA 100	0.626 (Same)
SMA 200	0.661 (Downtrend)
MACD	0.004352 (Uptrend 2 days)
MACD Histogram	-0.000329 (Downtrend 21 days)

My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue and pbt than FY11Q1 primarily attributable to:
i)the continuous encouraging growth for our online renewal of insurance, road tax transactions and its related services
ii)the introduction of our group’s new cloud computing based services
iii)a reduction in marketing expenses, primarily due to the higher expenses incurred in Q1 FY2011 due to the 2010 World Cup advertising campaign. This was, however, offset by higher depreciation expenses in Q1 FY2012 from new capital expenditure incurred

- Lower revenue and pbt than FY11Q4 primarily attributable to seasonality factor where demand for JPJ new driving licences decreased

- Estimate next 4Q eps after 2012 Q1 result announced = 0.0424*1.1 = 0.0466, estimate PE on current price 0.65 = 13.71(DPS 0.011)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.0105+0.0132)*2 = 0.0474, estimate highest/lowest PE = 13.69/11.9 (DPS 0.011)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0105*4*1.1 = 0.0462, estimate highest/lowest PE = 16.75/12.64 (DPS 0.011)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0097*4*1.1 = 0.042, estimate highest/lowest PE = 19.62/16.29 (DPS 0.006)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.032*1.1 = 0.0352, estimate highest/lowest PE = 26.7/20.45 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0097*4*1.1 = 0.0427, estimate highest/lowest PE = 19.32/16.16 (DPS 0.005)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0088*4 = 0.0352, estimate highest/lowest PE = 24.57/14.91 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 20.57/12.66 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0074*4 = 0.0296, estimate highest/lowest PE = 18.44/13.88 (DPS 0.0092)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 19.63/14.37 (DPS 0.01835)

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