KLCI Stock - MALTON / 6181 - 2010 Quarter 3

Market Cap : 348352928*0.37 = 128,890,583.36 (Small)
NTA per share : 434165/348353 = 1.25
P/BV : 0.37/1.25 = 0.296
Forecast P/E now : 0.37/0.054 = 6.85
ROE : 4.23% (Low)
DY : Not Applicable
Fixed Asset Turnover(3 year) : (0.4887+0.5468+0.5399)/3 = 0.5251 (Low)
Liquidity Ratio : 528989/218967 = 2.4158 (Moderate)
Receivables Collection Period : (112553+127389)/2/(365004/365) = 119 days
My Target Price : Not interested unless revenue show stable improve
My Decision : NOT BUY
My Comment : Revenue dropped, good cash flow, debt decreased, navps increasing
Technical Support Price : 0.35
Risk Rating : HIGH

My notes based on 2010 Quarter 3 report (number in '000):
- Group revenue decreased by 22.6% for the current quarter as compared to the previous corresponding quarter while pre-tax profit improved by 162.5% for the current quarter and reported in the previous corresponding quarter. Revenue from the property development division improved as compared to the previous corresponding quarter resulting from revenue recognition from on-going projects while total revenue from construction and project management division declined as compared to the previous corresponding quarter due to completion of sizable external project in mid 2009. The improved Group’s profit was due to higher contributions from the Group’s property division which has a higher margin as compared to the construction and project management division. Further to the completion of the acquisition of 20% equity interest in Austin Heights Sdn Bhd (“AHSB”) at the end of previous quarter, the Group recognized the share of results in AHSB amounting to RM0.3 million in the current quarter
- Group revenue decreased 44.2% for the current quarter as compared to the immediate preceding quarter. The decrease was mainly attributed to lower billings from both property development and construction divisions. The Group recorded a 40% drop of pre-tax profit in the current quarter as compared to the pre-tax profit of RM10.5 in the immediate preceding quarter. The lower profit achieved for the current quarter was mainly attributed to completion of Pearl Villas and Bayu Villas which were handed over to the purchasers in the previous quarter. Contributions from the construction division also reduced due to the completion of the Carrefour Hypermarket Project in previous quarter
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*0.9 = 0.054, estimate PE on current price 0.37 = 6.85
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0186*4 = 0.0744, estimate PE on current price 0.36 = 4.84
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0184*4 = 0.0736, estimate highest/lowest PE = 6.05/4.76
- Estimate next 4Q eps after 2009 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 19.5/17.5
- Estimate next 4Q eps after 2009 Q3 result announced = 0.003*4 = 0.012, estimate highest/lowest PE = 35.83/25
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0067*4 = 0.0268, estimate highest/lowest PE = 14.55/9.7

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