KLCI Stock - SUNWAY / 4308 - 2010 Quarter 1

Market Cap : 601769905*1.53 = 920,707,954.65 (Small)
NTA per share : (795185-128728)/610045 = 1.09
P/BV : 1.53/1.09 = 1.4037
Forecast P/E now : (1.53-0.02)/0.2552 = 5.92 (Low)
ROE : 11.97% (Moderate)
DY : 0.02/1.53*100 = 1.31% (Low)
Fixed Asset Turnover(3 year) : (0.7929+0.8651+0.9087)/3 = 0.8556(Low)
Liquidity Ratio : 1302805/961745 = 1.3546 (Low)
Receivables Collection Period : (690097+737567)/2/(1791369/365) = 145 days (Slightly long)
My Target Price : 2.55+0.02 = 2.57 (PE 10, EPS 0.2552, DPS 0.02)
My Decision : BUY
My Comment : Revenue and profit increasing, good cash flow, high debt but decreasing, navps decreasing
Technical Support Price : 1.3
Risk Rating : MODERATE
OSK Target Price : 2.22 (01 Jun 10)

My notes based on 2010 Quarter 1 report (number in '000):
- The Group achieved revenue include RM 5.0 million gains arising from the adoption of FRS 139, during the quarter under review. The Group’s performance was mainly contributed by the construction, property development and trading and manufacturing divisions
- During the current quarter, the Group recorded lower revenue as compared to the immediate preceding quarter. Despite a decline in revenue, the Group recorded an increase in profit before taxation by about 40% from last preceding quarter
- The improvement in operating results were mainly as a result of better margins achieved by both the local and foreign construction projects, property development both in Malaysia and Singapore, as well as the overseas trading division
- Estimate next 4Q eps after 2010 Q1 result announced = 0.058(exclude FRS 139)*4*1.1 = 0.2552(10% QbQ improvement adjustment), estimate PE on current price 1.53 = 5.92(DPS 0.02)
- Estimate next 4Q eps after 2009 Q6 result announced = 0.041*4*1.1 = 0.1804, estimate highest/lowest PE = 9.48/7.1 (DPS 0.02)
- Estimate next 4Q eps after 2009 Q5 result announced = 0.0318*4 = 0.1272, estimate highest/lowest PE = 11.95/8.88 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0352*4*1.1 = 0.1549, estimate highest/lowest PE = 9.36/8.26 (DPS 0.03)

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