KLCI Stock - SPSETIA / 8664 - 2010 Quarter 2

Market Cap : 1016805818*4.04 = 4,107,895,504.72 (Large)
NTA per share : 2061251/1035824 = 1.99
P/BV : 4.04/1.99 = 2.03
Forecast P/E now : (4.04-0.15)/0.1841 = 21.13 (High)
ROE : 9.25% (Low)
DY : 0.15/4.04*100 = 3.71% (Low)
Fixed Asset Turnover(3 year) : (0.3961+0.4178+0.3747)/3 = 0.3962 (Low)
Liquidity Ratio : 2121413/876749 = 2.4196 (Moderate)
Receivables Collection Period : (447843+278418)/2/(1483641/365) = 89 days
My Target Price : Not interested unless eps increase more
My Decision : NOT BUY
My Comment : Revenue and profit increased, good cash flow, high debt, navps decreased
Technical Support Price : 3.6, 3.5
Risk Rating : MODERATE
OSK Target Price : 3.59 (18 Jun 10)

My notes based on 2010 Quarter 2 report (number in '000):-
- The Group reported a 26% higher of profit after taxation compared to Q2 2009. The higher profit is mainly contributed from sales of residential and commercial properties in the Klang Valley and Johor Bahru
- For the current year to date, the Group achieved a 25% increased of profit after taxation of on the back of 19% increased of revenue over the results for the preceding year to date. The current year profit after taxation was arrived at after expensing approximately RM7 million for employee share options granted pursuant to the Company’s ESOS which was launched in May 2009
- The Group’s profit and revenue were mainly derived from its property development activities carried out in the Klang Valley, Johor Bahru and Penang. Ongoing projects which contributed to the Group’s profit and revenue include Setia Alam and Setia Eco-Park at Shah Alam, Setia Walk at Pusat Bandar Puchong, Setia Sky Residences at Jalan Tun Razak, Bukit Indah, Setia Indah, Setia Tropika and Setia Eco Gardens in Johor Bahru, Setia Pearl Island and Setia Vista in Penang. Apart from property development, the Group’s construction and wood-based manufacturing activities also contributed to the earnings achieved
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1841 (10% increase from 0.1674), estimate PE on current price 4.04 = 21.13(DPS 0.15)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1724 (3% increase from 0.1674), estimate highest/lowest PE = 24.01/20.19 (DPS 0.14)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 26.25/21.5 (DPS 0.14)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 27.63/21 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.16, estimate highest/lowest PE = 28.56/22.81 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.16, estimate highest/lowest PE = 28.69/16.19 (DPS 0.17)

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