KLCI Stock - IOICORP / 1961 - 2010 Quarter 3

Market Cap : 6676161280*5.15 = 34,382,230,592 (Very Large)
NTA per share : 10380260/6663696 = 1.56
P/BV : 5.15/1.56 = 3.3013
Forecast P/E now : (5.15-0.09)/0.3045 = 16.62 (Moderate)
ROE : 18.44% (Moderate)
DY : 0.09/5.15*100 = 1.75% (Low)
Fixed Asset Turnover(3 year) : (0.7211+1.0015+0.7629)/3 = 0.8285 (Low)
Liquidity Ratio : 7295720/1224007 = 5.9605 (Strong)
Receivables Collection Period : (1333827+1359607)/2/(12605480/365) = 38 days (Acceptable)
My Target Price : 5.48+0.09 = 5.57 (PE 18, EPS 0.3045, DPS 0.09)
My Decision : BUY
My Comment : Revenue and profit decreasing, good cash flow, above moderate debt but decreasing, navps decreased, shares increasing, CPO price increasing, monthly production increasing
Technical Support Price : 5
Risk Rating : LOW

My notes based on 2010 Quarter 3 report (number in '000):
- The Group reported a 402% higher pre-tax profit compared to Q3 FY2009. The higher profit is due mainly to higher contributions from the property and manufacturing segments and unrealised translation gain on USD denominated borrowings of RM231.5 million (Q3 FY2009 - loss of RM232.4 million)
- The plantation segment’s profit of RM282.0 million for Q3 FY2010 is in line with Q3 FY2009. The slightly lower FFB production for the current quarter was cushioned by higher average CPO prices realised. Average CPO prices realised for Q3 FY2010 was RM2,480/MT compared to RM2,274/MT
for Q3 FY2009
- The resource-based manufacturing segment reported an operating profit of RM128.6 million for Q3 FY2010 as compared to RM109.6 million in Q3 FY2009
- The property segment’s operating profit of RM124.7 million for Q3 FY2010 is 76% higher than the profit reported for Q3 FY2009. The significantly higher profit is contributed mainly by an overall increase in sales
- The Group reported a 106% higher pre-tax profit compared to Q3 YTD FY2009. The higher profit is due mainly to higher profit contributions from the property and manufacturing segments and unrealised translation gain on USD denominated borrowings
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0692*1.1*4 = 0.3045, estimate PE on current price 5.15 = 16.62(DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0729*4 = 0.2916, estimate highest/lowest PE = 19.31/17.46 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0737*4 = 0.2948, estimate highest/lowest PE = 18.86/16.72 (DPS 0.07)

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