KLCI Stock - SEB / 5163 - 2012 Quarter 2

SEREMBAN ENGINEERING BERHAD


Company Description

SEREMBAN ENGINEERING BERHAD engages in the manufacture and fabrication of process equipment. The company's products include unfired pressure vessels, heat exchangers, tanks, silos, and other machinery or parts. It also offers mechanical, maintenance, and shutdown services. In addition, the company, through its subsidiary, engages in the supply of labour; and hiring and servicing of machinery equipment. It serves chemical, edible oil, palm oil, bio-diesel, oleo chemical, and food and waste management industries. Seremban Engineering Sdn Bhd was formerly known as Seremban Engineering Services & Supplies Sdn Bhd. The company was incorporated in 1979 and is based in Seremban, Malaysia. As of March 2, 2007, Seremban Engineering Sdn Bhd is a subsidiary of Success Transformer Corp Bhd.

Company Info 

Listing Date	2010-05-10
IPO Price	0.85
Market Capital (Capital Size)	36,000,000 (Very Small)
Par Value	RM 0.50
Board	Main
Sector	Industrial Products
Major Industry	Process Equipment & Metal Structure
Sub Industry	Engineering Specialized Services
Website	http://www.sesb98.com/

My Analysis 

Forecast P/E now	(0.45-0.02)/0.0739 = 5.82 (Moderate)
Target Price	0.52+0.02 = 0.54 (PE 7.0, EPS 0.0739, DPS 0.02)
Decision	BUY if stock price sustain and got higher buy volume above 0.43 or wait rebound at lower price
Comment	Revenue increased 26.2% and also higher than preceding year corresponding quarter 43.8%, eps decreased 26.7% but higher than preceding year corresponding quarter 48.4%, not enough cash generated for operating hence increased borrowings and spent 44.8% of Group cash to cover all other expenses, gross margin got average of 15.4% per quarter, lower liquidity ratio indicate higher risk of cannot meet current obligation, gearing ratio increased too fast compare to profit which can impact earning by increase borrowing cost, inventory and receivables turnover period also slightly longer which can cause operation not enough cash, got risk of further cost overrun
First Support Price	0.43
Second Support Price	0.41
Risk Rating	MODERATE

Research House

Kenanga Target Price

0.59 (2012-08-27)

Accounting Ratio 

Return on Equity	10.91%
Dividend Yield	4.44%
Gross Profit Margin	13.79%
Operating Profit Margin	9.12%
Net Profit Margin	8.00%
Tax Rate	34.76%
Asset Turnover	0.7863
Net Asset Value Per Share	0.77
Net Tangible Asset per share	0.77
Price/Net Tangible Asset Per Share	0.64
Cash Per Share	0.17
Liquidity Current Ratio	1.4816
Liquidity Quick Ratio	0.9144
Liquidity Cash Ratio	0.2542
Gearing Debt to Equity Ratio	1.0283
Gearing Debt to Asset Ratio	0.503
Working capital per thousand Ringgit sale	26.3%
Days to sell the inventory	133
Days to collect the receivables	132
Days to pay the payables	123

Technical Analysis 

SMA 10	0.446 (Same)
SMA 20	0.446 (Uptrend 3 days)
SMA 50	0.457 (Same)
SMA 100	0.458 (Same)
SMA 200	0.452 (Same)
MACD (26d/12d)	-0.001336 ( 0.000474 )
Signal (9)	-0.002566 ( 0.000307 )
MACD Histogram	0.001230 (Bullish trend 4 days)
Bolinger Upper Band	0.458
Bolinger Lower Band	0.434

My notes based on 2012 quarter 2 report (number in '000):
- Higher revenue mainly due to higher sales recorded

- Higher pbt than FY11Q2 mainly due to higher sales achieved and higher profit margin

- Lower pbt than FY12Q1 mainly due to cost overrun of a project completed

- Estimate next 4Q eps after 2012 Q2 result announced = 62088*0.095/79838 = 0.0739, estimate PE on current price 0.45 = 5.82(DPS 0.02)
- Estimate next 4Q eps after 2012 Q1 result announced = 62328*0.09/79890 = 0.0702, estimate highest/lowest PE = 7.12/5.56 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q4 result announced = 60392*0.075/79981 = 0.0566, estimate highest/lowest PE = 9.45/7.6
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0126+0.0169)*2 = 0.059, estimate highest/lowest PE = 9.15/6.69
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0496, estimate highest/lowest PE = 10.28/7.76 (DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate highest/lowest PE = 10.69/8.87 (DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-08-24	2012	2	N/A	N/A	-	2.47%	5.86%	26862	48143	2149	4512	1492	3531	0.0187	0.0442	124935	62847	971	62088	12745	8993	11656	22525	21738	10082	12443	79838	79838	39519	2012-06-30	13.79%	9.12%	8.00%	34.76%	0.7863	-	0.77	0.77	0.64	0.17	1.4816	0.9144	0.2542	1.0283	0.503	26.3%	133	132	123
2012-05-17	2012	1	0.52	0.41	0.02	3.38%	3.38%	21281	21281	2364	2364	2040	2040	0.0255	0.0255	122915	60587	1061	62328	5243	2136	6968	22525	7379	411	22114	79890	79890	35950	2012-03-31	19.75%	12.51%	11.11%	11.76%	0.7326	-	0.77	0.77	0.58	0.29	1.5803	1.0122	0.4414	0.9889	0.4929	34.1%	144	122	153
2012-02-20	2011	4	0.535	0.43	-	2.67%	7.05%	30852	85258	1789	4867	1518	3999	0.0190	0.0500	115892	55595	1015	60297	14555	6115	1503	15588	8440	6937	22525	79981	79981	41590	2011-12-31	12.60%	6.58%	5.80%	9.95%	0.7357	10.4001	0.74	0.74	0.7	0.31	1.6517	1.1408	0.5168	0.9378	0.4797	36.2%	119	126	163
2011-11-17	2011	3	0.54	0.395	-	2.38%	4.37%	19241	54406	1608	3077	1350	2480	0.0169	0.0310	100821	42080	922	58741	6985	2254	288	15588	4731	5019	20607	79989	79989	33595	2011-09-30	15.32%	9.47%	8.36%	20.71%	0.7649	-	0.72	0.72	0.58	0.28	2.0031	1.4594	0.666	0.7278	0.4174	43.2%	101	125	102
2011-08-17	2011	2	0.52	0.395	-	1.77%	1.99%	18676	35165	1318	1469	1005	1131	0.0126	0.0141	99190	42091	597	57099	2222	5090	2578	15588	2868	290	15298	80000	80000	36000	2011-06-30	14.10%	8.32%	7.06%	23.14%	0.7012	-	0.71	0.71	0.63	0.21	1.8331	1.3268	0.4724	0.7449	0.4243	42.7%	111	160	118
2011-05-18	2011	1	0.565	0.45	-	0.22%	0.22%	16489	16489	151	151	125	125	0.0016	0.0016	96151	39265	588	56886	2564	4364	3939	15588	1800	2139	17727	80000	80000	45200	2011-03-31	9.98%	2.41%	0.92%	8.61%	0.6319	-	0.7	0.7	0.81	0.24	1.9228	1.4743	0.5862	0.6974	0.4084	49.6%	105	174	114
2011-02-17	2010	4	0.65	0.505	0.01	5.92%	7.20%	22710	50620	3323	4113	2587	3147	0.0323	0.0431	92875	36125	576	56750	6947	4052	16322	10265	10999	5323	15588	80000	72957	48400	2010-12-31	19.76%	15.21%	14.63%	20.49%	0.545	14.0257	0.77	0.77	0.79	0.21	2.1574	1.6587	0.5758	0.6431	0.389	67.2%	128	230	147
2010-11-18	2010	3	0.695	0.585	-	0.15%	1.29%	11678	27911	108	793	66	563	0.0008	0.0080	84037	30145	520	53892	240	1093	11259	10229	1333	9926	20155	80000	70583	52000	2010-09-30	10.66%	2.11%	0.92%	27.78%	0.535	-	0.76	0.76	0.86	0.27	2.2928	1.6352	0.8623	0.5648	0.3587	71.8%	169	157	165
2010-08-16	2010	2	0.815	0.625	-	1.74%	1.13%	9880	16232	946	683	762	495	0.0107	0.0075	78797	24984	509	53813	549	503	10384	10229	1052	9332	19561	71459	65797	49306	2010-06-30	22.98%	10.84%	9.57%	20.61%	0.6252	-	0.81	0.81	0.85	0.3	2.6788	2.0325	1.0799	0.4687	0.3171	66.5%	123	138	112
2010-05-24	2010	1	0.74	0.645	-	0.61%	0.61%	6352	6352	263	263	267	267	0.0044	0.0044	61839	23917	520	37922	750	75	4627	10229	675	3952	6277	60072	60072	43852	2010-03-31	14.48%	2.49%	4.14%	-	0.9275	-	0.62	0.62	1.18	0.13	1.9846	1.4931	0.4299	0.6395	0.3868	30.7%	73	121	81
N/A	2009	4	N/A	N/A	-	N/A	N/A	17053	69036	3997	12164	2935	9006	0.0367	0.1276	69575	25892	516	43683	10771	4195	5940	9629	6576	636	10265	80000	70583	N/A	2009-12-31	29.88%	24.24%	23.44%	23.29%	0.9922	-	0.61	0.61	N/A	0.15	2.1093	1.8496	0.5689	0.5998	0.3721	32.9%	38	139	87
N/A	2009	3	N/A	N/A	-	N/A	N/A	15981	51983	2151	8167	1614	6071	0.0202	0.0860	N/A	N/A	-	N/A	917	2381	2022	9629	1464	3486	6143	80000	70583	N/A	2009-09-30	21.77%	14.29%	13.46%	22.64%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2009	2	N/A	N/A	-	N/A	N/A	17970	36002	2907	6017	2176	4457	0.0305	0.0677	N/A	N/A	-	N/A	371	920	3340	9629	1291	4631	4998	71459	65797	N/A	2009-06-30	23.54%	17.05%	16.18%	24.25%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2009	1	N/A	N/A	-	N/A	N/A	18031	18031	3109	3109	2280	2280	0.0380	0.0380	N/A	N/A	-	N/A	2907	117	1645	9629	3024	4669	4960	60072	60072	N/A	2009-03-31	25.13%	18.36%	17.24%	25.35%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Investment in associated companies (A-0)	Investment in jointly controlled entity (A-0)	Investment properties (A-0)	Property, plant and equipment (A-0)	Amount due from associated companies (A-1)	Amount due from customers (A-1)	Cash and cash equivalents (A-1)	Inventories (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Hire purchase liabilities (L-0)	Loans & borrowings (L-0)	Current tax liabilities (L-1)	Hire purchase liabilities (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	2	5279	-	97	40066	-	-	13640	30436	35417	2625	473	6097	-	164	25622	27866	971
2012	1	305	-	97	38955	-	-	23341	30038	30179	2362	357	4994	-	138	20808	31928	1061
2011	4	-	-	97	37587	-	-	24473	24188	29547	2651	274	5319	-	125	14277	32949	1015
2011	3	-	36	97	34170	-	2769	22141	18076	23604	2471	300	6066	14	136	14871	18222	922
2011	2	-	-	97	33817	285	2111	16821	18029	28030	2524	328	3630	17	144	16410	19038	597
2011	1	-	-	97	33229	435	1621	19153	14653	26963	2486	245	3860	-	118	16752	15804	588
2010	4	-	1	97	29352	151	2664	16929	14662	29019	2476	227	4023	-	108	12592	16699	576
2010	3	-	5	97	26671	-	2616	21536	16423	16689	2312	254	2603	13	114	8920	15929	520
2010	2	-	14	97	26378	-	2260	21087	12619	16342	2275	280	2902	171	120	7859	11377	509
2010	1	-	14	97	26260	-	2145	7683	8784	16856	2248	306	3491	226	126	7971	9549	520
2009	4	-	14	97	26221	-	3170	11663	5325	23085	2250	108	3033	850	84	7366	12201	516

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Share of profit/ (loss) of associates	Share of net profit of jointly controlled entity	Other expenses
2012	2	26862	747	23159	276	314	1503	90	26	-	63
2012	1	21281	278	17077	303	230	1693	46	5	-	79
2011	4	30852	178	26966	229	74	1571	93	-	13	358
2011	3	19241	333	16293	215	270	1372	75	-	0	23
2011	2	18676	305	16042	236	396	1408	8	-	0	68
2011	1	16489	13	14843	246	162	1369	13	-	1	41
2010	4	22710	681	18223	129	193	1200	55	-	3	25
2010	3	11678	30	10433	129	96	1095	12	-	9	-
2010	2	9880	195	7610	125	57	1256	11	-	-	-
2010	1	6352	1	5432	105	111	1189	3	-	-	-
2009	4	17053	931	11957	135	213	1170	131	-	1	6
2009	3	15981	487	12502	129	279	917	50	-	3	-
2009	2	17970	705	13739	156	39	1207	26	-	-	-
2009	1	18031	788	13500	202	54	1274	41	-	-	-

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
gros_m = gross profit margin, oper_m = operating profit margin, prof_m = net profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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KLCI Stock - SEB / 5163 - 2011 Quarter 4

Company Info 

Market Capital (Capital Size)	40,000,000 (Very Small)
Par Value	RM 0.50

My Analysis 

Forecast P/E now	0.5/0.0566 = 8.83 (Moderate)
Target Price	0.0566*10.0 = 0.57 (PE 10.0, EPS 0.0566)
Decision	BUY if stock price moving back to uptrend and got very strong buying volume than selling
Comment	Revenue increased 60.3% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 35.9%, eps increased 12.4% and was third consecutive quarter increasing but still lower than preceding year corresponding quarter 41.2%, cash generated from operating is more than enough to cover all expenses, gross profit and operating profit margin decreased, weaker liquidity ratio from moderate to low level now, higher gearing ratio at above moderate level now, debt ratio increasing, increased in inventory days and revenue can indicate the Group target to generate more sales, longer payables payment period give Group conserves cash for others activities, higher payables but offset by higher revenue
First Support Price	0.43
Second Support Price	0.4
Risk Rating	MODERATE

Accounting Ratio 

Return on Equity	6.62%
Dividend Yield	-
Gross Profit Margin	12.60%
Operating Profit Margin	6.57%
Net Profit Margin	5.80%
Tax Rate	9.95%
Asset Turnover	0.7347
Net Asset Value Per Share	0.74
Net Tangible Asset per share	0.74
Price/Net Tangible Asset Per Share	0.7
Cash Per Share	0.31
Liquidity Current Ratio	1.6529
Liquidity Quick Ratio	1.1427
Liquidity Cash Ratio	0.5163
Gearing Debt to Equity Ratio	0.9371
Gearing Debt to Asset Ratio	0.4795
Working capital per thousand Ringgit sale	36.3%
Days to sell the inventory	119
Days to collect the receivables	127
Days to pay the payables	163

Technical Analysis 

SMA 20	0.491 (Downtrend 5 days)
SMA 50	0.456 (Uptrend)
SMA 100	0.439 (Uptrend)
SMA 200	0.46 (Same)
MACD (26d/12d)	0.001715 ( 0.001985 )
Signal (9)	0.004823 ( 0.000777 )
MACD Histogram	0.003108 (Bearish trend 10 days)

My notes based on 2011 quarter 4 report (number in '000):
- Lower pbt than FY10Q4 due to certain projects recorded lower profit margin and additional initial marketing and operating expenses incurred in venturing into Oil and Gas sector

- Higher pbt than FY11Q3 mainly due to higher sales

- Estimate next 4Q eps after 2011 Q4 result announced = 60392*0.075/79981 = 0.0566, estimate PE on current price 0.5 = 8.83
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0126+0.0169)*2 = 0.059, estimate highest/lowest PE = 9.15/6.69
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0496, estimate highest/lowest PE = 10.28/7.76 (DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate highest/lowest PE = 10.69/8.87 (DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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KLCI Stock - SEB / 5163 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	32,800,000 (Very Small)
Par Value	RM 0.50
Board	Main

My Analysis

Forecast P/E now	(0.41-0.01)/0.059 = 6.78 (High)
Target Price	0.27+0.01 = 0.28 (PE 4.5, EPS 0.059, DPS 0.01)
Decision	Not interested unless stock price sustain and next uptrend start above 0.41
Comment	Revenue increased 3% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 64.8%, eps increased 34.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 2012.5%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio from low to moderate level now, lower gearing ratio at above moderate level now, all accounting ratio are good, high inventory can indicate products demand still good
First Support Price	0.41
Second Support Price	0.395
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	8.78%
Dividend Yield	2.44%
Profit Margin	8.36%
Tax Rate	20.71%
Asset Turnover	0.7649
Net Asset Value Per Share	0.72
Net Tangible Asset per share	0.72
Price/Net Tangible Asset Per Share	0.58
Cash Per Share	0.28
Liquidity Current Ratio	2.0031
Liquidity Quick Ratio	1.4594
Liquidity Cash Ratio	0.666
Gearing Debt to Equity Ratio	0.7278
Gearing Debt to Asset Ratio	0.4174
Working capital per thousand Ringgit sale	43.2%
Days to sell the inventory	93
Days to collect the receivables	125
Days to pay the payables	94

My notes based on 2011 quarter 3 report (number in '000):
- Higher pbt mainly attributable to higher sales and better profit margin

- Estimate next 4Q eps after 2011 Q3 result announced = (0.0126+0.0169)*2 = 0.059, estimate PE on current price 0.41 = 6.78(DPS 0.01)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0496, estimate highest/lowest PE = 10.28/7.76 (DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate highest/lowest PE = 10.69/8.87 (DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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KLCI Stock - SEB / 5163 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	36,000,000 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.45-0.01)/0.0496 = 8.87 (High)
Target Price	0.22+0.01 = 0.23 (PE 4.5, EPS 0.0496, DPS 0.01)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 13.3% and also higher than preceding year corresponding quarter 89%, eps largely increased 687.5% and also higher than preceding year corresponding quarter 17.8%, cash generated from operating and financing is more than enough to cover financing payments and still spent for purchase property, plant and equipment, weaker liquidity ratio at low level now, higher gearing ratio at moderate level now, all accounting ratio got slightly high
First Support Price	0.45
Second Support Price	0.42
Risk Rating	HIGH

Accounting Ratio

Return on Equity	6.66%
Dividend Yield	2.22%
Profit Margin	7.06%
Tax Rate	23.14%
Asset Turnover	0.7012
Net Asset Value Per Share	0.71
Net Tangible Asset per share	0.71
Price/Net Tangible Asset Per Share	0.63
Cash Per Share	0.21
Liquidity Current Ratio	1.8331
Liquidity Quick Ratio	1.3268
Liquidity Cash Ratio	0.4724
Gearing Debt to Equity Ratio	0.7449
Gearing Debt to Asset Ratio	0.4243
Working capital per thousand Ringgit sale	42.7%
Days to sell the inventory	102
Days to collect the receivables	160
Days to pay the payables	108

My notes based on 2011 quarter 2 report (number in '000):
- The Group showed a higher PBT for current year and current quarter as compared to preceding year and preceding year corresponding quarter was mainly due to higher sales

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0496, estimate PE on current price 0.45 = 8.87(DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate highest/lowest PE = 10.69/8.87 (DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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KLCI Stock - SEB / 5163 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	40,800,000 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.51-0.01)/0.0496 = 10.08 (High)
Target Price	0.22+0.01 = 0.23 (PE 4.5, EPS 0.0496, DPS 0.01)
Decision	Not interested profit margin more stabilize
Comment	Revenue decreased 27.4% but higher than preceding year corresponding quarter 159.6%, eps decreased 95% and also lower than preceding year corresponding quarter 136.4%, cash generated from operating is more than enough to cover financing activities but still generated cash from financing activities to cover investing activity, weaker liquidity ratio at low level now, higher gearing ratio at moderate level now, all accounting turnover periods also slightly long, profit margin still unstable
First Support Price	0.51
Second Support Price	0.46
Risk Rating	HIGH

Accounting Ratio

Return on Equity	6.32%
Dividend Yield	1.96%
Profit Margin	0.92%
Tax Rate	8.61%
Asset Turnover	0.6319
Net Asset Value Per Share	0.7
Net Tangible Asset per share	0.7
Price/Net Tangible Asset Per Share	0.81
Cash Per Share	0.24
Liquidity Current Ratio	1.9228
Liquidity Quick Ratio	1.4743
Liquidity Cash Ratio	0.5862
Gearing Debt to Equity Ratio	0.6974
Gearing Debt to Asset Ratio	0.4084
Working capital per thousand Ringgit sale	49.6%
Days to sell the inventory	95
Days to collect the receivables	174
Days to pay the payables	104

My notes based on 2011 quarter 1 report (number in '000):
- The Group showed a PBT for current quarter as compared to the loss before tax in the preceding year corresponding quarter was mainly due to higher sales

- The profit before taxation of RM0.15 million for the current quarter as compared to the profit before taxation in preceding quarter of RM3.32 million was mainly due to lower sales and lower margin

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate PE on current price 0.51 = 10.08(DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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KLCI Stock - SEB / 5163 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	47,200,000 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.59/0.0496 = 11.90 (High)
Target Price	0.0496*4.5 = 0.22 (PE 4.5, EPS 0.0496)
Decision	Not BUY unless revenue and profit stabilize in coming quarter
Comment	Revenue Second consecutive quarter increasing but still lower than FY09, eps Decreased, lower than preceding year corresponding quarter also, only slightly better than FY10Q1, No free cash flow but net cash flow increasing, Revenue increasing but still low, profit dropped a lot if compare to FY09, cash increasing from CFF, liquidity ratio decreased but still at moderate level, gearing ratio increased at moderate level now, receivables increasing, expanding production capacity, steel price increasing, Europe market recovering
First Support Price	0.59
Second Support Price	0.585
Risk Rating	HIGH

Accounting Ratio

Return on Equity	5.57%
Dividend Yield	-
Profit Margin	14.63%
Tax Rate	20.49%
Asset Turnover	0.5462
Net Asset Value Per Share	0.77
Net Tangible Asset per share	0.77
Price/Net Tangible Asset Per Share	0.79
Cash Per Share	0.21
Liquidity Current Ratio	2.1494
Liquidity Quick Ratio	1.6475
Liquidity Cash Ratio	0.5756
Gearing Debt to Equity Ratio	0.6458
Gearing Debt to Asset Ratio	0.39
Working capital per thousand Ringgit sale	66.8%
Days to sell the inventory	116
Days to collect the receivables	227
Days to pay the payables	132

My notes based on 2010 quarter 4 report (number in '000):
- The current year results showed a Group revenue of RM50.62 million and a profit before taxation (“PBT”) of RM4.11 million as compared to a revenue of RM69.04 million and PBT of RM12.16 million in the previous financial year respectively

- The current quarter results showed a Group revenue of RM22.71 million and PBT of RM3.32 million as compared to a revenue of RM17.05 million and PBT of RM4.00 million in the corresponding quarter of the previous financial year respectively

- The lower PBT for current year and current quarter as compared to preceding year and preceding year corresponding quarter was mainly due to lower margin

- The profit before taxation of RM3.32 million for the current quarter as compared to the profit before taxation in preceding quarter of RM0.11 million was mainly due to higher sales

- Revenue and profit dropped a lot when compared to FY09,08,07, average EPS in last 3 years was 0.1386, if FY10 still can achieve this result then PE base on current price 0.64 = 4.62

- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate PE on current price 0.59 = 11.9
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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KLCI Stock - SEB / 5163 - 2010 Quarter 3

Company Info

Market Capital (Capital Size)	48,400,000 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.605/0.0722 = 8.38 (High)
Target Price	0.0722*4.5 = 0.32 (PE 4.5, EPS 0.0722)
Decision	Not BUY unless revenue and profit increase more
Comment	Revenue increasing but still low, profit dropped a lot if compare to FY09, cash increasing from CFF, liquidity ratio decreased but still at moderate level, gearing ratio increased at moderate level now, expanding production capacity, steel price increasing, Europe market recovering
First Support Price	0.6
Second Support Price	0.585
Risk Rating	HIGH

Accounting Ratio

Return on Equity	0.84%
Dividend Yield	-
Profit Margin	0.92%
Tax Rate	27.78%
Asset Turnover	0.3321
Net Asset Value Per Share	0.76
Net Tangible Asset per share	0.76
Price/Net Tangible Asset Per Share	0.86
Cash Per Share	0.27
Liquidity Current Ratio	2.2928
Liquidity Quick Ratio	1.6352
Liquidity Cash Ratio	0.8623
Gearing Debt to Equity Ratio	0.5648
Gearing Debt to Asset Ratio	0.3587
Working capital per thousand Ringgit sale	115.7%
Days to sell the inventory	222
Days to collect the receivables	252
Days to pay the payables	217

My notes based on 2010 quarter 3 report (number in '000):
- The current quarter results showed a Group revenue of RM27.91 million and a profit before taxation (PBT) of RM0.79 million as compared to a revenue of RM51.98 million and profit before taxation (PBT) of RM8.17 million in the corresponding quarter of the previous financial year respectively. The lower PBT was mainly due to lower sales and margin recorded in the current financial period to date

- The profit before taxation of RM0.11 million for the current quarter as compared to the profit before taxation in preceding quarter of RM0.95 million was mainly due to lower margin

- Revenue and profit dropped a lot when compared to FY09,08,07, average EPS in last 3 years was 0.1386, if FY10 still can achieve this result then PE base on current price 0.64 = 4.62

- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722

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KLCI Stock - SEB / 5163 - 2010 Quarter 2

Market Cap : 80000000*0.625 = 50,000,000 (Very Small)
NTA per share : 53304/71459 = 0.75
P/BV : 0.625/0.75 = 0.8333
Forecast P/E now : N/A
ROE : N/A
DY : N/A
Fixed Asset Turnover : N/A
Liquidity Ratio : 52308/19528 = 2.6786 (Moderate)
Receivables Collection Period : N/A
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue and profit dropped a lot if compare to FY09, cash increased from CFF, below moderate debt and decreased, expanding production capacity, steel price decreased, Europe market still not yet recovery, entire o&g industry getting better
Technical Support Price : N/A
Risk Rating : HIGH

My notes based on 2010 Quarter 2 report (number in '000):

- The current quarter results showed a Group revenue of RM16.23 million and a profit before taxation (PBT) of RM0.68 million as compared to a revenue of RM36.00 million and profit before taxation (PBT) of RM6.02 million in the corresponding quarter of the previous financial year. The lower PBT was mainly due to lower sales achieved in the current financial period to date

- The profit before taxation of RM0.95 million for the current quarter as compared to the loss before taxation in preceding quarter of RM0.26 million was mainly due to higher sales in the current quarter

- Revenue and profit dropped a lot when compared to FY09,08,07, average EPS in last 3 years was 0.1386, if FY10 still can achieve this result then PE base on current price 0.685 = 4.94

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KLCI Stock - SEB / 5163 - 2010 Quarter 1

Market Cap : 80000000*0.685 = 54,800,000 (Very Small)
NTA per share : 37401/60072 = 0.62
P/BV : 0.685/0.62 = 1.1048
Forecast P/E now : 0.685/0.1386 = 4.94 (High)
ROE : N/A
DY : N/A
Fixed Asset Turnover(1 year) : 0.1027 (Very Low)
Liquidity Ratio : 35468/17872 = 1.9846 (Low)
Receivables Collection Period : 16856/(6352/365) = 968 (Very Bad)
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue and profit dropped a lot, big different with FY09, got little free cash flow but paid out many dividend, above moderate debt and increased, expanding production capacity, steel price decreased, Europe market still not yet recovery, entire o&g industry getting better
Technical Support Price : 0.65
Risk Rating : HIGH

My notes based on 2010 Quarter 1 report (number in '000):
- The current quarter results showed a Group revenue of RM6.3 million and a loss after taxation (LAT) of RM0.26 million as compared to a revenue of RM18.0 million and profit after taxation (PAT) of RM2.32 million in the corresponding quarter of the previous financial year. The LAT was mainly due to lower sales recognized in the current quarter
- The loss after taxation of RM0.26 million for the current quarter as compared to the profit after taxation in preceding quarter of RM3.06 million was mainly due to lower sales recognized in the current quarter
- Revenue and profit dropped a lot when compared to FY09,08,07, average EPS in last 3 years was 0.1386, if FY10 still can achieve this result then PE base on current price 0.685 = 4.94

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