KLCI Stock - GTRONIC / 7022 - 2010 Quarter 2

Market Cap : 265765640*1.46 = 388,017,834.40 (Small)
NTA per share : 231955/265007 = 0.88 (Increased)
P/BV : 1.46/0.88 = 1.6591
Forecast P/E now : (1.46-0.09)/0.104 = 13.17 (High)
ROE : 11.25% (Moderate)
DY : 0.09/1.46*100 = 6.16% (Moderate)
Fixed Asset Turnover(3 year) : (0.9062+0.8156+1.078)/3 = 0.9333
Liquidity Ratio : 157217/45932 = 3.4228 (Good)
Receivables Collection Period : (49979+41206)/2/(256137/365) = 64 days (Acceptable)
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue and profit growing, good cash flow, low debt but slightly increased, navps slightly increasing
Technical Support Price : 1.3
Risk Rating : HIGH

My notes based on 2010 quarter 2 report (number in '000):-
- The Group’s turnover and net profit for the first half ended 30 June 2010 increased significantly by 41.8% and 2.6 times respectively as compared to the first half of the previous year mainly due to higher volume loadings from all the Group’s customers as a result of recovery of the global economy. The net profit for the first half of 2009 was partly affected by impairment loss due to the shutdown of the Group’s China operations
- Turnover for the quarter ended 30 June 2010 was increase of 14.8% as compared to the preceding quarter while the net profit of the Group increased by 23%. The increase in turnover and net profit is mainly due to continuous higher volume loadings from all the Group’s key customers
- Estimate next 4Q eps after 2010 Q2 result announced = 0.026*4 = 0.104(0.026 is average of latest recent quarter), estimate PE on current price 1.46 = 13.17(DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0904+0.0007+(0.0911*0.05) = 0.0957(adjustment from 0.0233-0.0226 and 5% grow adjustment), estimate highest/lowest PE = 16.61/12.85 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0226*4 = 0.0904, estimate highest/lowest PE = 18.36/9.07 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0183*4 = 0.0732, estimate highest/lowest PE = 15.64/8.74 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0137*4 = 0.0548, estimate highest/lowest PE = 15.78/13.05 (DPS 0.025)

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