KLCI Stock - LPI / 8621 - 2010 Quarter 2

Market Cap : 138723000*16.8 = 2,330,546,400 (Medium)
NTA per share : 940472/137669 = 6.83
P/BV : 16.8/6.83 = 2.4597
Forecast P/E now : (16.8-0.5125)/1.0303 = 15.81 (High)
ROE : 14.86% (Moderate)
DY : 0.5125/16.8*100 = 3.05% (Low)
Fixed Asset Turnover : Not applicable
Liquidity Ratio : Not applicable
Receivables Collection Period : Not applicable
My Target Price : 15.45+0.51 = 15.96 (PE 15, EPS 1.0303, DPS 0.5125)
My Decision : NOT BUY unless price below 15
My Comment : Revenue and profit increasing compared to last year, good cash flow, navps increasing
Technical Support Price : 15
Risk Rating : MODERATE (due to high PE)

My notes based on 2010 Quarter 2 report (number in '000):-
- The Group's revenue increased by 12.2% as compared to the same corresponding quarter in 2009. The increase was mainly due to higher gross premium underwritten. The Group's profit before tax increased by 17.3% as compared to the same corresponding quarter in 2009. The increase was mainly due to higher underwriting profit
- For the second quarter ended 30 June 2010, the Group recorded lower profit before tax of RM35.9 million as compared to RM48.8 million in the preceding quarter ended 31 March 2010. The decrease in the profit before tax for the said quarter was mainly due to higher investment income received in the preceding quarter
- Estimate next 4Q eps after 2010 Q2 result announced = 1.0303(10% grow from 0.9366), estimate PE on current price 16.8 = 15.81(DPS 0.5125)
- Estimate next 4Q eps after 2010 Q1 result announced = 1.0303(10% grow from 0.9366), estimate highest/lowest PE = 15.15/12.76 (DPS 0.675)
- Estimate next 4Q eps after 2009 Q4 result announced = 1.0533(15% grow from 0.9159), estimate highest/lowest PE = 12.94/11.53 (DPS 0.675)
- Estimate next 4Q eps after 2009 Q3 result announced = 1.0253, estimate highest/lowest PE = 13.23/11.16 (DPS 0.74)
- Estimate next 4Q eps after 2009 Q2 result announced = 1.0204, estimate highest/lowest PE = 11.43/10.25 (DPS 0.74)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.979, estimate highest/lowest PE = 10.88/8.63 (DPS 0.85)

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