KLCI Stock - KNM / 7164 - 2010 Quarter 2

Market Cap : 4004370375*0.405 = 1,621,770,001.88 (Large)
NTA per share : (1629471-617504-777159)/3928281 = 0.06
P/BV : 0.405/0.06 = 6.75
Forecast P/E now : Not applicable
ROE : 3.41% (Low)
DY : Not applicable
Fixed Asset Turnover(4 year) : (0.461+0.6028+0.4309+0.9317)/4 = 0.6066 (Low)
Liquidity Ratio : 1179832/990412 = 1.1913 (Low)
Receivables Collection Period : (404921+531868)/2/(1613468/365) = 105 days (Slightly long)
My Target Price : Not interested unless more contract secure
My Decision : NOT BUY
My Comment : Revenue and profit dropping, cash decreasing nearly 50% from FY2009Q4, high debt and increasing, navps decreasing hence the price may drop more, O&G sector slowly recover
Technical Support Price : 0.4
Risk Rating : HIGH
OSK Target Price : 0.56 (01 Sep 10)

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

- The Group recorded revenue dropped of 12.8% while profit before tax dropped 87.3% for the current period ended 30 June 2010 compared to the same period of previous year, the lower performance in this period was due to lower utilization of capacity

- The Group’s revenue increased 2.7% and profit before taxation for the second quarter ended 30 June 2010 was higher by RM8.07 million compared to first quarter’s profit before taxation of RM0.25 million. The higher revenue and profit for this quarter are mainly due to continuous improvement in capacity utilization during the quarters

- No estimate for next 4Q eps after 2010 Q2 result announced
- No estimate for next 4Q eps after 2010 Q1 result announced
- No estimate for next 4Q eps after 2009 Q4 result announced
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0081*4 = 0.0324, estimate highest/lowest PE = 11.67/9.39 (DPS 0.015)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0181*4 = 0.0724, estimate highest/lowest PE = 11.67/9.39 (DPS 0.015)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0250*4 = 0.1, estimate highest/lowest PE = 10.45/7
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0214*4 = 0.0856, estimate highest/lowest PE = 9.7/3.56 (DPS 0.015)

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