KLCI Stock - INGRESS / 7112 - 2011 Quarter 1

INGRESS CORPORATION BERHAD

Listing Date: 09.03.2001
Market: MAIN
Sector: INDUSTRIAL
Par Value: 1.00
Major Industry: Construction
Sub Industry: Engineering & Contracting Services
Market Cap : 76800000*0.64 = 49,152,000 (Very Small)
NTA per share : (151033-4031)/76800 = 1.91
P/BV : 0.64/1.91 = 0.3351
Forecast P/E now : 0.64/0.1288 = 4.97 (High)
ROE : 10.29% (Moderate)
DY : Not applicable
Fixed Asset Turnover(3 year) : (1.0558+0.9254+0.679)/3 = 0.8867 (Moderate)
Liquidity Ratio : 315013/401834 = 0.7839 (Weak)
Receivables Collection Period : (154588+201032)/2/(680599/365) = 95 days
My Target Price : 0.64 (PE 5, EPS 0.1288)
My Decision : NOT BUY unless price below 0.57
My Comment : Revenue increasing, profit maintain above 2 million, good cash flow, high debt but decreasing, navps increasing
Technical Support Price : 0.53
Risk Rating : HIGH

INGRESS CORPORATION BERHAD is a Malaysia-based company engaged in investment holding and the provision of management services. The Company operates in two segments: automotive components manufacturing, and power engineering and railway electrification. Some of the activities of its subsidiaries include the manufacture and supply of automotive door assemblies (door-in-white), and manufactures and assembles medium to high tonnage press parts; manufacture of automotive components; manufacture and supply of roll-formed plastic moldings and weather-strips, wire-harness and provision of management services; provision of engineering services for the power and utility industry, and the provision of engineering services in the field of computer aided design, manufactures tools, jigs and dies and undertakes comprehensive product development work. In July 2008, the Company subscribed for additional shares in Ingress CES Sdn Bhd (ICES), which increased its holding in ICES to 70%.

My notes based on 2011 Quarter 1 report (number in '000):
- The Automotive Division recorded a revenue of RM161.7 million and profit before tax of RM11.0 million as against the previous financial year's corresponding quarter revenue of RM126.3 million and profit before tax of RM2.4 million
- The Power Engineering and Projects Division (PEP Division) recorded a revenue of RM18.7 million and a profit before tax of RM7.6 million in comparison to the previous financial year's corresponding quarter revenue of RM25.4 million and profit before tax of RM0.6 million. Together with its associate companies, the overall PEP Division recorded profit before tax of RM5.9 million in comparison to previous financial year profit before tax of RM0.5 million
- Total Automotive Division reported an increase of 28% in revenue. Automotive Components Manufacturing (ACM) registered a significant increase in revenue by 73% whilst Premium Automotive Dealership (PAD) recorded 27% decrease in revenue
- ACM Malaysia recorded a 66% increase in revenue
- Supplies door related parts, moulding and sash products for the Perodua Alza commenced delivery in Q4FY10 continued in this quarter. In comparison to the previous financial year corresponding quarter, all models registered increases in volume except for Proton Savvy and Perodua Myvi
- ACM Thailand registered a 74% increase in revenue in comparison to the previous financial year corresponding quarter. All models recorded increases in volume except for Honda City and Honda Jazz
- ACM Indonesia recorded a 54% increase in revenue. All models registered increases in volume except for Mitsubishi TD New Canter
- The Power Engineering and Projects (PEP) Division recorded a 27% decrease in revenue in comparison to the previous financial year corresponding quarter
- Overall Automotive Division recorded a 19% increase in revenue against the immediate preceding quarter
- Premium Automotive Dealership recorded a 15% decrease in revenue
- Overall ACM Division registered a 38% increase in revenue
- ACM Malaysia registered a 90% increase in revenue. All models including Perodua Alza which was launched in previous quarter registered increases in volume except for Proton Savvy, Perodua Viva and Perodua Myvi
- Compared to the immediate preceding quarter, ACM Thailand’s revenue increased by 1%. Most models registered marginal increases in volume except for Isuzu Vega, Honda City, Honda Jazz, Honda Civic and new Honda Jazz
- ACM Indonesia’s revenue improved by 30% from the preceding quarter. Improvements were mostly due to the increases in volumes for all models
- For PEP Division, compared to the preceeding quarter, its revenue decreased by 30%
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0322*4 = 0.1288(0.0322 is eps after exclude 8 million from other income), estimate PE on current price 0.64 = 4.97
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0346*4 = 0.1384, estimate highest/lowest PE = 4.99/3.76
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0357*4 = 0.1428, estimate highest/lowest PE = 5.67/4.1
- Estimate next 4Q eps after 2010 Q2 result announced = 0.023*4 = 0.092, estimate highest/lowest PE = 9.24/3.53

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