KLCI Stock - TIMECOM / 5031 - 2011 Quarter 4

Company Info

Market Capital (Capital Size)	1,758,888,625 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	0.695/0.0417 = 16.67 (Moderate)
Target Price	0.0417*17.0 = 0.71 (PE 17.0, EPS 0.0417)
Decision	Not interested unless stock price can break 0.745 with very strong buy or wait MACD start move up from very low
Comment	Revenue increased 8.1% but lower than preceding year corresponding quarter 2.7%, eps decreased 38.5% and also lower than preceding year corresponding quarter 43.4%, cash generated from operating and investing enough to cover investing expenses, operating profit margin still high, slightly weaker liquidity ratio at moderate level now, lower gearing ratio at low level now, debt ratio at very low level now, receivables and payables repayment period still inline with revenue growth
First Support Price	0.675
Second Support Price	0.62
Risk Rating	MODERATE

Research House

Macquarie Target Price	0.94 (2011-02-14)
CIMB Target Price	0.85 (2012-02-27)
HLG Target Price	0.85 (2012-03-05)
OSK Target Price	0.87 (2012-03-28)

Accounting Ratio

Return on Equity	6.68%
Dividend Yield	-
Gross Profit Margin	0.00%
Operating Profit Margin	16.38%
Net Profit Margin	30.77%
Tax Rate	1.66%
Asset Turnover	0.1609
Net Asset Value Per Share	0.69
Net Tangible Asset per share	0.69
Price/Net Tangible Asset Per Share	0.99
Cash Per Share	0.09
Liquidity Current Ratio	2.0393
Liquidity Quick Ratio	2.0393
Liquidity Cash Ratio	1.2164
Gearing Debt to Equity Ratio	0.1098
Gearing Debt to Asset Ratio	0.099
Working capital per thousand Ringgit sale	63.8%
Days to sell the inventory	-
Days to collect the receivables	184
Days to pay the payables	288

Technical Analysis

SMA 20	0.7 (Downtrend 14 days)
SMA 50	0.715 (Same)
SMA 100	0.705 (Same)
SMA 200	0.657 (Same)
MACD (26d/12d)	-0.005606 ( 0.000234 )
Signal (9)	-0.007104 ( 0.000375 )
MACD Histogram	0.001498 (Bullish trend 3 days)

My notes based on 2011 quarter 4 report (number in '000):-
- Lower revenue than FY10Q4 primarily due to one-off global bandwidth sales recognised by the Group in Quarter 4, 2010. Excluding the one-off global bandwidth sales, consolidated revenue would have improved by 15%

- Lower pbt than FY11Q3 mainly due to one-time adjustments of RM3.2 million operating expenses in current quarter than RM19.7 million in previous quarter and also allowance for long outstanding construction deposits of RM3.0 million and impairment loss on a freehold land of RM2.1 million in the current quarter

- Estimate next 4Q eps after 2011 Q4 result announced = 1757657*0.06/2530775 = 0.0417, estimate PE on current price 0.695 = 16.67
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0426, estimate highest/lowest PE = 18.19/15.38
- Estimate next 4Q eps after 2011 Q2 result announced = (0.009+0.0113)*2*1.05 = 0.0426, estimate highest/lowest PE = 16.31/9.74
- Estimate next 4Q eps after 2011 Q1 result announced = 0.009*4*1.05 = 0.0378, estimate highest/lowest PE = 22.22/14.02

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