KLCI Stock - PERISAI / 0047 - 2010 Quarter 2

Market Cap : 662400000*0.51 = 337,824,000 (Small)
NTA per share : (245100-76127)/662000 = 0.26
P/BV : 0.51/0.26 = 1.9615
Forecast P/E now : 0.51/0.0313 = 16.29 (High)
ROE : 4.84% (Low)
DY : Not applicable
Fixed Asset Turnover(3 year) : (0.1524+0.2087+0.3594)/3 = 0.2402 (Low)
Liquidity Ratio : 76533/87387 = 0.8758 (Weak)
Receivables Collection Period : (32728+32832)/2/(71518/365) = 167 days (Bad)
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue and profit decreased and remain low, bad cash flow, high debt but decreased some, navps increasing
Technical Support Price : 0.5
Risk Rating : HIGH

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

- For the financial period ended 30 June 2010, the Group generated total revenue from continuing operations of RM37.30 million and profit attributable to equity holders of the parent of RM11.95 million. This compares to revenue from continuing operations of RM66.96 million and profit attributable to the equity holders of the parent RM33.15 million for the preceding corresponding financial period ended 30 June 2009

- The decrease in revenue and profit attributable to equity holders of the parent for the financial period ended 30 June 2010 was mainly due to the expiration of the Saturation Diving System contract and the revision of charter rates for the Derrick Lay Barge (“DLB”) from USD95,000 per day for 240 days per annum to a yearly fixed monthly rate of USD1,900,000 per month and USD20,000 for each working day for the 271st day and beyond in the calendar year

- For the financial quarter ended 30 June 2010, the Group generated total revenue from continuing operations of RM18.30 million and profit attributable to equity holders of the parent of RM5.77 million. This compares to revenue from continuing operations of RM33.40 million and profit attributable to the equity holders of the parent RM17.12 million for the preceding corresponding financial quarter ended 30 June 2009

- The decrease in revenue and profit attributable to equity holders of the parent for the financial quarter and period ended 30 June 2010 was mainly due to reasons as mentioned above

- For the financial quarter ended 30 June 2010, the Group recorded a PBT from continuing operations of approximately RM5.79 million as compared to a profit before taxation of RM6.23 million for the preceding financial quarter ended 31 March 2010

- The PBT from continuing operations in the current quarter was consistent with the preceding quarter due to the ongoing charter of the DLB

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0087*4*0.9 = 0.0313 (10% drop), estimate PE on current price 0.51 = 16.29
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0093*4*0.9 = 0.0335 (10% drop), estimate highest/lowest PE = 17.76/14.63
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0589*0.85 = 0.0501, estimate highest/lowest PE = 13.77/8.38
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0125*4 = 0.05, estimate highest/lowest PE = 12/9.4

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