KLCI Stock - JOBST / 0058 - 2010 Quarter 1

Market Cap : 317215800*2.02 = 640,775,916 (Small)
NTA per share : (176401-2978)/320297 = 0.54
P/BV : 2.02/0.54 = 3.74 (Overvalue)
Forecast P/E now : (2.02-0.0425)/0.0991 = 19.95 (High)
ROE : 20.81% (High)
DY : 0.0425/2.02*100 = 2.1% (Low)
Fixed Asset Turnover(3 year) : (0.4644+0.6852+0.7241)/3 = 0.6246 (Low)
Liquidity Ratio : 71570/32870 = 2.1774 (Moderate)
Receivables Collection Period : (16020+11745)/2/(98216/365) = 51 days (Acceptable)
My Target Price : 1.59 + 0.04 = 1.63 (PE 16, EPS 0.0991, DPS 0.0425)
My Decision : NOT BUY unless price below 1.7
My Comment : Revenue increased, still negative net cash flow, low debt, navps increasing
Technical Support Price : 2, 1.8, 1.5
Risk Rating : MODERATE

My notes based on 2010 quarter 1 report (number in '000):-
- Consolidated revenue recorded 27.0% higher than corresponding quarter of the preceding financial year. The growth directly reflected improving economic conditions which positively impacted sales of the Group’s core product, JobStreet ESSENTIAL (online job posting service) and JobStreet IMPACT (career website management service) which grew 53.0% and 84.9% respectively year on year. The increase was partially offset by a decrease in revenue from JobStreet RESOURCE (provision of contract staffing services) by 22.9%
- Results from operating activities and profit before tax (“PBT”) grew 85.9% and 87.7% respectively due to the vastly improved sales of JobStreet ESSENTIAL and JobStreet IMPACT which led to a higher gross profit margin. Operating expenses only increased marginally by 1.8% as a result of higher staff costs which was offset by lower staff contracting costs
- The Group recorded revenue of 19.3% increase compared with preceding quarter. This increase was mainly due to the continuous growth in revenue from JobStreet ESSENTIAL and JobStreet IMPACT, reflecting the strengthening macro economic environment
- In terms of profitability, PBT in the current quarter grew by 30.4% mainly due to the high profit margins from JobStreet ESSENTIAL and JobStreet IMPACT
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0991 (5% grow from 0.0944), estimate PE on current price 2.02 = 19.95(DPS 0.0425)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0895 (around 5% grow from 0.085), estimate highest/lowest PE = 23.8/16.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0892, estimate highest/lowest PE = 17.49/15.02 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.084, estimate highest/lowest PE = 16.49/13.63 (DPS 0.035)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0899, estimate highest/lowest PE = 14.07/11.4 (DPS 0.035)

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