KLCI Stock - MITRA / 9571 - 2010 Quarter 2

Market Cap : 127989267*1.01 = 129,269,159.67 (Small)
NTA per share : (281198-3145)/120199 = 2.31
P/BV : 1.01/2.31 = 0.4372
Forecast P/E now : (1.01-0.1)/0.28 = 3.25 (Low)
ROE : 22.01% (High)
DY : 0.1/1.01*100 = 9.9% (High)
Fixed Asset Turnover(3 year) : (0.7994+0.4063+0.5911)/3 = 0.5989 (Low)
Liquidity Ratio : 304415/136766 = 2.2258 (Moderate)
Receivables Collection Period : (91937+82264)/2/(394913/365) = 80 days (Acceptable)
My Target Price : 2.24+0.1 = 2.34 (PE 8, EPS 0.28, DPS 0.1)
My Decision : BUY
My Comment : Revenue increased, also higher than preceding year preceding quarter, profit same with revenue, free cash flow increasing, net cash flow increased, second consecutive quarter profit margin increasing, better liquidity ratio at moderate level now, better gearing ratio at above moderate level now, all collection period are acceptable from historical comparison
Technical Support Price : 1, 0.945
Risk Rating : MODERATE

My notes based on 2010 quarter 2 report (number in '000):-

- For this current quarter under review, the Group's revenue has increased by 68% as compared to a revenue in the preceding year corresponding quarter. The increase in revenue is mainly derived from Group's construction and property development divisions

- The Group generated higher revenue and profit before tax for the current quarter under review as compared to the preceding quarter due to higher revenue and profit recognition from Group's construction and property development divisions

- Estimate next 4Q eps after 2010 Q2 result announced = 0.2*0.7*2 = 0.28, estimate PE on current price 1.01 = 3.25(DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.12(average of 0.03 per quarter), estimate highest/lowest PE = 10.5/7.5 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.08(average of 0.02 per quarter if no new big project secure for construction division), estimate highest/lowest PE = 15.13/7.63 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.08, estimate highest/lowest PE = 9/7
- Estimate next 4Q eps after 2009 Q2 result announced = 0.08, estimate highest/lowest PE = 7.88/6.63
- Estimate next 4Q eps after 2009 Q1 result announced = 0.08, estimate highest/lowest PE = 7.44/5.38

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