KLCI Stock - BPURI / 5932 - 2010 Quarter 2

Market Cap : 105247900*1.16 = 122,087,564 (Small)
NTA : 101687/104828 = 0.97
P/BV : 1.16/0.97 = 1.1959
Forecast P/E now : (1.16-0.04)/0.0926 = 12.1 (High)
ROE : 7.73% (Low)
DY : 0.04/1.16*100 = 3.45% (Low)
Fixed Asset Turnover(3 year) : (1.3266+1.2647+1.5118)/3 = 1.3677 (High)
Liquidity Ratio : 657829/650847 = 1.0107 (Low)
Receivables Collection Period : (457673+290182)/2/(1025020/365) = 133 days
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue maintaining above 250 million, average eps around 0.2 something only, bad cash flow, very high debt, navps slightly increased, order book increasing, profit margin still very low
Technical Support Price : 1
Risk Rating : HIGH
Kenanga Target Price : 1.77 (24 Aug 10)

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

- The Group achieved a 76.2% increase of revenue and 70.7% increase of profit as compared to the previous corresponding period

- The construction division recorded a 88.3% increase of revenue and 252.9% increase of profit before tax as compared to the previous corresponding period. The improved performance of this division was mainly attributable to progressive profit recognized from the projects in progress

- The quarry and ready mix concrete division recorded a 53.5% increase of revenue but 17.6% decrease of profit before tax as compared to the previous corresponding period. The performance of this division remains satisfactory

- The polyol division recorded a revenue of RM6.2 million and incurred a loss of RM154,000 as compared to the previous corresponding period of RM8.4 million and RM65,000 respectively. The performance of the division was affected by lack of export market due to the global economic slowdown and intense competition in the local market

- During the quarter under review, the Group achieved a 10.3% decrease of revenue as compared to the immediate preceding quarter. The Group’s recorded a 69.2% increase of profit before tax for the 2nd quarter ended 30 June 2010 as compared to the preceding quarter. The improved performance was mainly attributable to progressive profit recognized from the projects in progress

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0463*2 = 0.0926, estimate PE on current price 1.16 = 12.1(DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0828(10% grow from 0.0753, added adjustment from last quarter estimated), estimate highest/lowest PE = 18.12/11.59 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0781(10% grow from 0.071), estimate highest/lowest PE = 16.26/9.8 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.078, estimate highest/lowest PE = 10.9/8.91 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.06, estimate highest/lowest PE = 15.17/11.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0484, estimate highest/lowest PE = 18.39/15.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0465, estimate highest/lowest PE = 19.78/14.19 (DPS 0.04)

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