KLCI Stock - PELIKAN / 5231 - 2010 Quarter 1

Market Cap : 512796061*1.11 = 569,203,627.71 (Small)
NTA per share : (860264-111235)/439305 = 1.71
P/BV : 1.11/1.71 = 0.6491
Forecast P/E now : Not Available
ROE : Negative
DY : 0.02/1.11*100 = 1.8% (Low)
Fixed Asset Turnover(3 year) : (0.562+0.8419+0.7887)/3 = 0.7309 (Low)
Liquidity Ratio : 1056482/814276 = 1.2974 (Low)
Receivables Collection Period : (426657+279923)/2/(1195672/365) = 107 days (Acceptable)
My Target Price : Not Interested
My Decision : NOT BUY
My Comment : Revenue remain low, high profit but guess is non-repeatable, good cash flow, high debt, navps increased
Technical Support Price : 1
Risk Rating : HIGH
OSK Target Price : 0.93 (26 May 10)

My notes based on 2010 Q1 report (number in '000):
- The Group’s revenue for the current financial quarter was dropped 4.41% compared to the corresponding quarter last year. The overall sales for the current quarter were softer as a result of the uncertain market conditions in major markets where the Group trades in, particularly in Europe. In addition, the weakened Euro currency against Ringgit Malaysia in the current quarter had contributed to the lower revenue when translated into the reporting currency
- In the current quarter, as a result of the acquisitions of Herlitz, Molkari and Ganymed, as disclosed in Note A11 above, the Group recognised negative goodwill resulting from the said acquisitions of RM143.1 million. The Group has plan for merger and reorganisation of its business operations with that of Herlitz and has identified and provided for related expenses amounted to RM41.9 million in the current quarter
- Operationally, without taking into account the negative goodwill and provision for expenses mentioned above, the Group’s results in the current quarter was slightly higher than the corresponding quarter last year with profit after tax of RM10.8 million. The profit in the current quarter was also partly affected by exchange loss recognized in the profit and loss of RM2.7 million (corresponding quarter in 2009: RM0.4 million exchange loss). The reduction in finance costs and improvement in the profit of associate contributed positively to the results of the current quarter
- In the current quarter, the Group’s revenue increased 4.4% compared to the fourth quarter last year. Both first and fourth quarters are currently weakest quarters of the Group in terms of sales due to the "back to school" season of Europe in mid year. The results improved in the first quarter 2010 due to higher sales and better absorption of costs
- No estimate for next 4Q eps

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