KLCI Stock - GTRONIC / 7022 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	424,554,530 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.56-0.09)/0.1156 = 12.72 (Moderate)
Target Price	1.56+0.09 = 1.65 (PE 13.5, EPS 0.1156, DPS 0.09)
Decision	BUY if stock price still strong sustain and uptrend above SMA20
Comment	Revenue increased 22.4% and also higher than preceding year corresponding quarter 0.4%, eps increased 56.3% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 28%, cash generated from operating is more than enough to cover financing expenses but still spent 8.5% of Group cash to cover investing expenses, gross margin keep improved to a quite satisfactory level, current liquidity ratio indicate Group financial strength is very strong but is not manage cash efficient, current gearing ratio indicate well manage through payables, all accounting of turnover or payables payment period is good, higher inventory and higher revenue can indicate Group products demands still good
First Support Price	1.5
Second Support Price	1.4
Risk Rating	MODERATE

Research House

Jupiter Target Price

1.63 (2012-07-25)

Accounting Ratio

Return on Equity	11.75%
Dividend Yield	5.77%
Gross Profit Margin	26.90%
Operating Profit Margin	16.51%
Net Profit Margin	17.40%
Tax Rate	19.70%
Asset Turnover	0.7951
Net Asset Value Per Share	0.96
Net Tangible Asset per share	0.96
Price/Net Tangible Asset Per Share	1.45
Cash Per Share	0.34
Liquidity Current Ratio	2.9456
Liquidity Quick Ratio	2.7291
Liquidity Cash Ratio	1.563
Gearing Debt to Equity Ratio	0.2387
Gearing Debt to Asset Ratio	0.1927
Working capital per thousand Ringgit sale	44.3%
Days to sell the inventory	24
Days to collect the receivables	97
Days to pay the payables	94

Technical Analysis

SMA 10	1.509 (Uptrend)
SMA 20	1.486 (Uptrend 6 days)
SMA 50	1.499 (Uptrend)
SMA 100	1.367 (Uptrend)
SMA 200	1.192 (Uptrend)
MACD (26d/12d)	0.015533 ( 0.003578 )
Signal (9)	0.006621 ( 0.002228 )
MACD Histogram	0.008912 (Bullish trend 8 days)
Bolinger Upper Band	1.569
Bolinger Lower Band	1.403

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue and pbt due to higher volume loadings from most of the Group’s customers in the quarter, better product mix coupled with various productivity improvement and cost control programs implemented and economy of scale

- Estimate next 4Q eps after 2012 Q1 result announced = 258877*0.12/268760 = 0.1156, estimate PE on current price 1.56 = 12.72(DPS 0.09)
- Estimate next 4Q eps after 2012 Q1 result announced = 247348*0.11/268761 = 0.1012, estimate highest/lowest PE = 14.23/9.88 (DPS 0.09)
- Estimate next 4Q eps after 2011 Q4 result announced = 246430*0.1/266508 = 0.0925, estimate highest/lowest PE = 11.89/8.92 (DPS 0.09)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.029*4*1.05 = 0.1218, estimate highest/lowest PE = 8.09/6.03 (DPS 0.065)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0282*3*1.05+0.0241*1.05 = 0.1141, estimate highest/lowest PE = 8.46/6.88 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1139*1.1 = 0.1253, estimate highest/lowest PE = 7.53/7.05 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0326*4 = 0.1304(no decrease due to high tax expenses), estimate highest/lowest PE = 8.46/6.85 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0326*4 = 0.1304, estimate highest/lowest PE = 8.97/7.67 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.026*4 = 0.104(0.026 is average of latest recent quarter), estimate highest/lowest PE = 13.94/8.94 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0904+0.0007+(0.0911*0.05) = 0.0957(adjustment from 0.0233-0.0226 and 5% grow adjustment), estimate highest/lowest PE = 16.61/12.85 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0226*4 = 0.0904, estimate highest/lowest PE = 18.36/9.07 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0183*4 = 0.0732, estimate highest/lowest PE = 15.64/8.74 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0137*4 = 0.0548, estimate highest/lowest PE = 15.78/13.05 (DPS 0.025)

GTRONIC latest news (English)

GTRONIC latest news (Chinese)