KLCI Stock - TDM / 2054 - 2010 Quarter 2

Market Cap : 219666202*2.29 = 503,035,602.58 (Moderate)
NTA per share : (636997-1070)/221337 = 2.87
P/BV : 2.29/2.87 = 0.7979
Forecast P/E now : (2.29-0.13)/0.3732 = 5.79 (Moderate)
ROE : 11.44% (Moderate)
DY : 0.13/2.29*100 = 5.68% (Moderate)
Fixed Asset Turnover(3 year) : (0.4374+0.4136+0.4202)/3 = 0.4237 (Low)
Liquidity Ratio : 206867/142857 = 1.4481 (Low)
Receivables Collection Period : (84105+83897)/2/(368748/365) = 83 days (Acceptable)
My Target Price : 2.43+0.13 = 2.56 (PE 6.5, EPS 0.3732, DPS 0.13)
My Decision : BUY
My Comment : Revenue and profit QbQ decreasing(recent 2Q), good cash flow, below moderate debt and slightly decreased, navps decreased, CPO price increasing, monthly production increasing
Technical Support Price : 2
Risk Rating : MODERATE

My notes based on 2010 Quarter 2 report (number in '000):
- For the current quarter, the Group recorded an increase of 14% in revenue from previous corresponding quarter. Group revenue for the six months period ended 30 June 2010 was 22.7% increased from the same period last year
- Plantation Division recorded higher revenue by 20% as compared to the same period last due to higher CPO production by 1% and higher average CPO prices by 7%
- Healthcare Division continues to register double digit revenue and profit growth. For the quarter ended 30 June 2010, the division recorded an increase in revenue and profit before tax by 13% and 22% respectively. This is contributed by the increased in patient number by 5% as compared to the same period last year
- Food Division recorded losses of RM0.8 million due to lower average prices achieved as a result of weakened demand for process birds during the 6 months ended 30 June 2010
- The Group recorded a decreased of 36.9% in profit before taxation for the current quarter over preceding quarter due to lower CPO production by 9%
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0933*4 = 0.3732(0.0933 is average of eps in FY10Q1 and FY09Q4), estimate PE on current price 2.29 = 5.79(DPS 0.13)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0889*4 = 0.3556, estimate highest/lowest PE = 6.52/4.16 (DPS 0.13)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2503*1.2 = 0.3004, estimate highest/lowest PE = 6.23/5.13 (DPS 0.13)
- Estimate next 4Q eps after 2009 Q3 result announced = (0.0923+0.0418+0.019)/3*4*1.2 = 0.245, estimate highest/lowest PE = 6.37/5.51 (DPS 0.14)

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