KLCI Stock - TGOFFS / 7228 - 2010 Quarter 1

Market Cap : 260121031*1.2 = 312,145,237.20 (Small)
NTA per share : (320573-9807)/256000 = 1.21
P/BV : 1.2/1.21 = 0.9917
Forecast P/E now : 1.2/0.0369 = 32.52 (High)
ROE : Negative
DY : Not applicable
Fixed Asset Turnover(4 year) : (0.5629+0.6904+0.6869)/3 = 0.6467 (Low)
Liquidity Ratio : 263326/200997 = 1.3101 (Low)
Receivables Collection Period : (234015+271253)/2/(590181/365) = 156 days (Bad)
My Target Price : Not interested unless revenue increase
My Decision : NOT BUY
My Comment : Revenue dropping and profit remain low, negative net cash flow(caused by CFF), remain high debt but slightly decreased, navps same
Technical Support Price : 1, 0.94
Risk Rating : HIGH

My notes based on 2010 Quarter 1 report (number in '000):-
- For the current quarter ended 31 March 2010, the Group recorded a decrease of 31.57% in consolidated revenue as compared to the corresponding quarter ended 31 March 2009. The net profit after tax recorded for the current quarter ended 31 March 2010 is 70.62% lower than that recorded in the corresponding quarter ended 31 March 2009
- During the quarter under review, the Group recorded a lower revenue as compared to the preceding year quarter due to the completion of engineering equipment contracts at Citech Energy Recovery Systems UK Limited (CERS) and various maintenance contracts. The Group also recorded a lower revenue due to maintenance or dry-dock services performed on two (2) units of the Group’s vessels namely, MV Tanjung Manis and MV Tanjung Huma in the current quarter under review
- In view of the reduction in revenue, the Group also recorded a lower profit after tax from offshore support vessel division as well as slight losses at the engineering equipment divisions at CERS and Tanjung CSI Sdn Bhd respectively. Notwithstanding these losses at the equipment division, the Group is confident that the new contracts secured by this division will result in a turnaround and record improved earnings and profitability in the near future
- The Group’s total revenue for the current quarter represents a decrease of 6.28% as compared to the preceding quarter ended 31 December 2009. The Group’s consolidated net profits registered in the current quarter represents a slight increase in earnings as compared to the net profits registered in the preceding quarter. Overall revenue and net profits registered in the current quarter under review is similar to that registered in the preceding quarter
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0346+(0.0119-0.0096) = 0.0369, estimate PE on current price 1.2 = 32.52
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0096*4 = 0.0384-(0.0384*0.1) = 0.0346, estimate PE on current price 1.2 = 34.68

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