KLCI Stock - KGB / 0151 - 2010 Quarter 1

Market Cap : 74710000*0.77 = 57,526,700 (Very Small)
NTA per share : (35039-199)/74710 = 0.47
P/BV : 0.77/0.47 = 1.6383
Forecast P/E now : (0.77-0.03)/0.1 = 7.4 (High)
ROE : 25.65% (High)
DY : 0.03/0.77*100 = 3.9% (Low)
Fixed Asset Turnover(1 year) : 1.1519 (High)
Liquidity Ratio : 52751/22918 = 2.3017 (Moderate)
Receivables Collection Period : 20038/(68232/365) = 107 days
My Target Price : Not interested unless lower debt
My Decision : NOT BUY
My Comment : Revenue increasing compared to previous year but lower profit, bad cash flow, above moderate debt and increased, navps decreased
Technical Support Price : 0.7
Risk Rating : HIGH

My notes based on 2010 quarter 1 report (number in '000):-

- The Group recorded a higher revenue as compared to previous corresponding quarter in 2009 mainly due to the increase in number of contracts secured by the China operations and revenue contribution from the Singapore operations
- The Group achieved 37.9% decrease in revenue as compared to the preceding quarter, due to typically lower sales in the first quarter of the year as a result of festive seasons. The Group had achieved higher PBT in the current quarter as compared to the preceding quarter mainly due to listing expenses being charged to income statement in the preceding quarter
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate PE on current price 0.77 = 7.4(DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1, estimate highest/lowest PE = 7.7/6.65 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1, estimate highest/lowest PE = 9/5.8

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