KLCI Stock - JOBST / 0058 - 2010 Quarter 2

Market Cap : 317760350*2.15 = 683,184,752.50 (Medium)
NTA per share : (145867-2978)/324271 = 0.44
P/BV : 2.15/0.44 = 4.8864
Forecast P/E now : (2.15-0.055)/0.1441 = 14.54 (Moderate)
ROE : 24.24% (High)
DY : 0.055/2.15*100 = 2.56% (Low)
Fixed Asset Turnover(3 year) : (0.5809+0.6578+0.7165)/3 = 0.6517 (Low)
Liquidity Ratio : 72911/32343 = 2.2543 (Moderate)
Receivables Collection Period : (13684+9391)/2/(105065/365) = 40 days (Acceptable)
My Target Price : 2.31 + 0.06 = 2.37 (PE 16, EPS 0.1441, DPS 0.055)
My Decision : BUY
My Comment : Revenue and profit increasing, cash flow remain normal, low debt but slightly increased, navps decreased, economic recovery
Technical Support Price : 2
Risk Rating : MODERATE
OSK Target Price : 1.7 (18 Aug 10)

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

- For the quarter ended 30 June 2010, consolidated revenue 29.9% higher than the corresponding
quarter in the preceding financial year. This increase reflected the ongoing economic recovery
which resulted in higher revenues from JobStreet ESSENTIAL (online job posting service) by 58.3% year on year. The increase in revenue from JobStreet ESSENTIAL was partially offset by contraction of revenues from JobStreet IMPACT (career website management service) and JobStreet RESOURCE (provision of contract staffing services) by 29.7% and 16.4% respectively

- Results from operating activities rose 57.8% as a result of higher sales from JobStreet ESSENTIAL; gross profit margin also improved. Operating expenses increased by 15.6% due to higher staff costs with a partial offset from lower staff contracting costs. On a pre-tax basis,
the Group’s profit before taxation (“PBT”) recorded growth of 78.5% compared with the corresponding quarter in the preceding financial year. During the current quarter, the Group equity accounted for its share of profit in an associate amounting to RM1.4 million which contributed to the improvement in profitability

- The Group’s profit after taxation (“PAT”) increased by 54.5% compared with the corresponding quarter in 2009. The lower rate of growth in PAT compared with PBT was mainly due to the expiry of pioneer tax-exemption status of a subsidiary effective from 27 May 2009

- For the current quarter under review, the Group recorded revenue of 7.7% increase compared with the preceding quarter. This increase was mainly due to higher sales from JobStreet ESSENTIAL coupled with the dividends received from the Group’s quoted investments

- In terms of profitability, PBT in the current quarter rose by 24.3% mainly due to improving profit margins from JobStreet ESSENTIAL and share of profit in an associate, 104 Corp

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0343*4*1.05 = 0.1441, estimate PE on current price 2.15 = 14.54(DPS 0.055)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0991 (5% grow from 0.0944), estimate highest/lowest PE = 20.66/18.54 (DPS 0.0425)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0895 (around 5% grow from 0.085), estimate highest/lowest PE = 23.8/16.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0892, estimate highest/lowest PE = 17.49/15.02 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.084, estimate highest/lowest PE = 16.49/13.63 (DPS 0.035)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0899, estimate highest/lowest PE = 14.07/11.4 (DPS 0.035)

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