KLCI Stock - MAMEE / 5282 - 2010 Quarter 1

Market Cap : 151278995*2.96 = 447,785,825.20 (Small)
NTA per share : (238574-459)/145941 = 1.53
P/BV : 2.96/1.53 = 1.9346 (Moderate)
Forecast P/E now : (2.96-0.12)/0.328 = 8.66 (High)
ROE : 19.23% (Moderate)
DY : 0.12/2.96*100 = 4.05% (Moderate)
Fixed Asset Turnover(3 year) : (1.4172+1.554+1.4922)/3 = 1.4878 (High)
Liquidity Ratio : 180796/64699 = 2.7944 (Moderate)
Receivables Collection Period : (74036+61593)/2/(435327/365) = 56 days (Acceptable)
My Target Price : 3.28+0.12 = 3.4 (PE 10, EPS 0.328, DPS 0.12)
My Decision : BUY
My Comment : Revenue and profit increased, negative net cash flow, low debt and it decreased, navps decreased
Technical Support Price : 2.86, 2.75
Risk Rating : LOW

My notes based on 2010 Quarter 1 report (number in '000):-
- The Group recorded a 26% increase of for the quarter under review compared to the previous year's corresponding period. Both the local and foreign markets contributed to the higher revenue, which resulted from effective advertising and promotion activities, as well as the strengthening of distribution channels. Profit before tax rose to RM15.8 million for the quarter, representing 15% increase as compared to RM13.7 million achieved in the same quarter last year. The smaller increase is due to higher expenditure in selling and distribution incurred for the quarter under review as the Group had expanded sales force in order to attain wider penetration in the local market
- The Group recorded higher revenue and profit before tax in the first quarter this year as compared with the immediate preceding quarter. Group turnover registered an increase of 12%, on the back of greater consumer demand. Profit before tax rose by 30% in tandem with the higher turnover and other operating income. In addition, the improvement in profit before tax was also derived from lower losses from foreign subsidiary in China
- Estimate next 4Q eps after 2010 Q1 result announced = 0.082*4 = 0.328, estimate PE on current price 2.96 = 8.66(DPS 0.12)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.528(5% grow from 0.5029), after bonus = 0.2925, estimate highest/lowest = 10.53/7.79 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.5456, estimate highest/lowest PE = 7.59/4.58 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.521, estimate highest/lowest PE = 7.14/3.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.485, estimate highest/lowest PE = 5.15/4.39 (DPS 0.1)

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