KLCI Stock - LEADER / 4529 - 2010 Quarter 2

Market Cap : 436458652*0.82 = 357,896,094.64 (Small)
NTA per share : 545948/436459 = 1.25
P/BV : 0.82/1.25 = 0.656
Forecast P/E now : (0.82-0.03)/0.115 = 6.87 (Moderate)
ROE : 7.95% (Low)
DY : 0.03/0.82*100 = 3.66% (Low)
Fixed Asset Turnover(3 year) : (1.7107+1.836+2.0574)/3 = 1.868 (High)
Liquidity Ratio : 772979/503095 = 1.5364 (Low)
Receivables Collection Period : (397410+300538)/2/(2255779/365) = 56 days (Acceptable)
My Target Price : 0.92+0.03 = 0.95 (PE 8, EPS 0.115, DPS 0.03)
My Decision : BUY
My Comment : Revenue and profit increasing, cash decreasing, high debt and increased, navps slightly increased, metal price increasing again since end of August
Technical Support Price : 0.82
Risk Rating : MODERATE
OSK Target Price : 1.05 (24 Aug 10)

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

- The Group registered a revenue increase of 43.2% for the current reporting quarter ended 30 June 2010 as compared to the corresponding quarter ended 30 June 2009. The Cable and Wire division recorded a higher revenue mainly due to increased in sales quantity and surge in metal prices in the current reporting quarter

- In line with the higher revenue, the Group recorded 13.8% higher profit before taxation in the current reporting quarter as compared to the corresponding quarter ended 30 June 2009

- The Group’s profit before taxation for the current reporting quarter ended 30 June 2010 was 38.37% higher as compared to the preceding quarter

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0575*2 = 0.115, estimate PE on current price 0.82 = 6.87(DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1041, estimate highest/lowest PE = 8.5/7.4 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0261*4 = 0.1044, estimate highest/lowest PE = 9.77/7.71 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0363*4 = 0.1452, estimate highest/lowest PE = 6.44/4.92 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.032*4 = 0.128, estimate highest/lowest PE = 6.29/5.35 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0281*4 = 0.1124, estimate highest/lowest PE = 7.38/5.2 (DPS 0.03)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0289*4 = 0.1156, estimate highest/lowest PE = 5.97/3.16 (DPS 0.03)

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