KLCI Stock - DIALOG / 7277 - 2010 Quarter 3

Market Cap : 1980523233*1.05 = 2,079,549,394.65 (Medium)
NTA per share : (484157-5258)/1967530 = 0.24
P/BV : 1.05/0.24 = 4.375
Forecast P/E now : (1.05-0.037)/0.068 = 14.9 (Moderate)
ROE : 23.39% (High)
DY : 0.037/1.05*100 = 3.52% (Low)
Fixed Asset Turnover(3 year) : (1.3493+1.3276+1.2256)/3 = 1.3008 (High)
Liquidity Ratio : 605736/331790 = 1.8257 (Low)
Receivables Collection Period : (310738+211469)/2/(1224900/365) = 77 days (Acceptable)
My Target Price : 1.09+0.04 = 1.13 (PE 16, EPS 0.068, DPS 0.037)
My Decision : NOT BUY unless price below 1
My Comment : Revenue and profit increasing, good cash flow, above moderate debt and slightly increasing, navps decreased
Technical Support Price : 1
Risk Rating : MODERATE
OSK Target Price : 1.29 (31 May 10)

My notes based on 2010 Quarter 3 report (number in '000):-
- The Group posted a 5% growth in revenue from corresponding financial quarter last year. Profit after tax for the reporting quarter increased by 35% for the same financial quarter last year
- The better performance achieved for the current quarter and the cumulative nine-month period were mainly attributable to the increase in E&C and Plant Maintenance works
- The Group’s profit before tax for the current financial quarter was 12% higher when compared to the preceding financial quarter mainly as a result of an increase of works performed by Plant Maintenance and higher Specialist Products sales for the current financial quarter both in Malaysia and other countries
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0162*4*1.05 = 0.068(5% increase), estimate PE on current price 1.05 = 14.9(DPS 0.037)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.04*2 = 0.08, estimate highest/lowest PE = 14.3/11.5 (DPS 0.036)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0193*4 = 0.0772, estimate highest/lowest PE = 18.83/15.73 (DPS 0.036)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0659*1.1 = 0.0725, estimate highest/lowest PE = 18.4/15.64 (DPS 0.036)

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