KLCI Stock - KGB / 0151 - 2012 Quarter 2

Company Info 

Market Capital (Capital Size)	85,383,218 (Very Small)
Par Value	RM 0.10

My Analysis 

Forecast P/E now	(0.535-0.04)/0.0503 = 9.84 (Moderate)
Target Price	0.55+0.04 = 0.59 (PE 11.0, EPS 0.0503, DPS 0.04)
Decision	BUY if stock price continue above short term moving average and must sustain above SMA100
Comment	Revenue decreased 9.9% and was second consecutive quarter decreasing and also lower than preceding year corresponding quarter 34.5%, eps increased 109.9% but lower than preceding year corresponding quarter 50.2%, cash generated from operating more than enough to cover financing expenses but still spent 6% of Group cash to cover investing expenses, gross margin still high, stronger liquidity ratio and the current ratio indicate Group financial strength is strong, lower gearing ratio and this indicate Group not manage to continue bring maximum return with high leverage, all accounting of turnover or collection period is good, lower receivables and lower revenue can indicate work amount reduce
First Support Price	0.515
Second Support Price	0.485
Risk Rating	MODERATE

Research House

OSK Target Price	0.75 (2012-06-28)
Kenanga Target Price	0.53 (2012-09-13)

Accounting Ratio 

Return on Equity	16.24%
Dividend Yield	7.48%
Gross Profit Margin	18.32%
Operating Profit Margin	7.87%
Net Profit Margin	7.55%
Tax Rate	7.65%
Asset Turnover	1.5103
Net Asset Value Per Share	0.68
Net Tangible Asset per share	0.61
Price/Net Tangible Asset Per Share	1.0
Cash Per Share	0.3
Liquidity Current Ratio	2.1442
Liquidity Quick Ratio	2.0789
Liquidity Cash Ratio	0.7068
Gearing Debt to Equity Ratio	0.6617
Gearing Debt to Asset Ratio	0.3982
Working capital per thousand Ringgit sale	28.9%
Days to sell the inventory	7
Days to collect the receivables	125
Days to pay the payables	89

Technical Analysis 

SMA 10	0.505 (Uptrend)
SMA 20	0.505 (Uptrend 1 day)
SMA 50	0.592 (Downtrend)
SMA 100	0.485 (Uptrend)
SMA 200	0.337 (Uptrend)
MACD (26d/12d)	-0.015642 ( 0.003338 )
Signal (9)	-0.022766 ( 0.001781 )
MACD Histogram	0.007124 (Bullish trend 6 days)
Bolinger Upper Band	0.633
Bolinger Lower Band	0.377

My notes based on 2012 quarter 2 report (number in '000):-
- Lower revenue due to the timing of the delivery of the projects in hand which had been completed in the first quarter of 2012

- Lower pbt than FY11Q2 due to an increase in administrative expenses such as increase in personnel costs and integration costs of newly acquired subsidiary, Puritec Technologies (S) Pte Ltd

- Estimate next 4Q eps after 2012 Q2 result announced = 53524*0.15/159595 = 0.0503, estimate PE on current price 0.535 = 9.84 (DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.12, estimate highest/lowest PE = 11.75/8.08 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.12, estimate highest/lowest PE = 9/6.67 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.12, estimate highest/lowest PE = 8.92/6.67 (DPS 0.03)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.12, estimate highest/lowest PE = 7.17/6.13 (DPS 0.03)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.12, after private issues eps = 0.108, highest/lowest PE = 7.59/6.94 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.12, estimate highest/lowest PE = 7.5/5.17, after private issues eps = 0.108, highest/lowest PE = 8.33/5.74 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.095, estimate highest/lowest PE = 7.16/6.42 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.095, estimate highest/lowest PE = 8.63/7.05 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate highest/lowest PE = 9.6/6.6 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate PE on current price 0.77 = 7.4(DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1, estimate highest/lowest PE = 7.7/6.65 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1, estimate highest/lowest PE = 9/5.8

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