KLCI Stock - EPIC / 8265 - 2010 Quarter 2

Market Cap : 169503400*2.11 = 357,652,174 (Small)
NTA per share : (337433-9767)/167432 = 1.96
P/BV : 2.11/1.96 = 1.0765
Forecast P/E now : (2.11-0.06)/0.295 = 6.95 (High)
ROE : 13.01% (Moderate)
DY : 0.06/2.11*100 = 2.84% (Low)
Fixed Asset Turnover(3 year) : (0.4492+0.5254+0.587)/3 = 0.5205 (Low)
Liquidity Ratio : 167500/45240 = 3.7 (High)
Receivables Collection Period : (60596+51549)/2/(202796/365) = 100 days (Acceptable)
My Target Price : 2.07+0.06 = 2.13 (PE 7, EPS 0.295, DPS 0.06)
My Decision : NOT BUY unless price below 1.9
My Comment : Revenue and profit increasing, good cash flow, low debt but slightly increased, navps increasing, crude oil price increasing possibly increase the number of contract
Technical Support Price : 1.85
Risk Rating : MODERATE
OSK Target Price : 2.43 (05 Aug 10)

My notes based on 2010 Quarter 2 report (number in '000):-
- The Group achieved an increase of revenue by 29% compared to the same quarter in the preceding year. The Group recorded an increase of 34% in profit before tax compared to the same quarter in the preceding year
- For the six months ended 30 June 2010, the Group generated a revenue increase by 21% compared to the same period in the preceding year. The Group recorded an increase of profit before tax by 31% compared to the same quarter in the preceding year
- The increase in revenue and profit before tax was mainly due to increase in port operations and oil and gas activities
- During the current quarter under review, the Group recorded an increase of 44% in profit before tax compared to the preceding quarter due to increase in port operations and oil and gas activities
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2682*1.1 = 0.295(0.2682 is recent 4Q cum_eps and estimate 10% increase), estimate PE on current price 2.11 = 6.95(DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2747(still within expectation), estimate highest/lowest PE = 6.92/5.28 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2747(10% grow from 0.2497), estimate highest/lowest PE = 6.01/5.39 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2327, estimate highest/lowest PE = 6.68/5.82 (DPS 0.085)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.2221, estimate highest/lowest PE = 7.18/6.33 (DPS 0.085)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1868, estimate highest/lowest PE = 8.94/6.48 (DPS 0.09)

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