KLCI Stock - MALTON / 6181 - 2010 Quarter 4

Market Cap : 348352928*0.445 = 155,017,052.96 (Small)
NTA per share : 439494/348353 = 1.26
P/BV : 0.445/1.26 = 0.3532
Forecast P/E now : 0.445/0.0564 = 7.89
ROE : 4.97% (Low)
DY : Not Applicable
Fixed Asset Turnover(4 year) : (0.4815+0.5168+0.4586+0.6276)/4 = 0.5211 (Low)
Liquidity Ratio : 493121/212743 = 2.3179 (Moderate)
Receivables Collection Period : (69179+138678)/2/(346920/365) = 109 days
My Target Price : Not interested unless assets recovery
My Decision : NOT BUY
My Comment : Property division with higher margin growth, good cash flow, above moderate debt but decreasing, navps increasing, assets decreasing
Technical Support Price : 0.415, 0.35
Risk Rating : HIGH

My notes based on 2010 quarter 4 report (number in '000):

- The Group’s revenue declined by 16.9% for the current financial year as compared to the previous financial year while pre-tax profit improved by 200.0% for the current financial year from the previous corresponding financial year. Revenue from the property development division improved as compared to the previous corresponding year resulting from higher revenue recognition from on-going and new projects launched during the year while total revenue from construction and project management division declined as compared to the previous corresponding year due to completion of sizable external projects in mid 2009. The improved Group’s profit was due to higher contributions from the Group’s property division which has a higher margin as compared to the construction and project management division. Further to the completion of the acquisition of 20% equity interest in Austin Heights Sdn Bhd (“AHSB”) at the end of September 2009, the Group recognized its maiden share of results in AHSB amounting to RM1.6 million in the current financial year

- The Group’s revenue declined by 17.4% for the current quarter as compared to the previous corresponding quarter while the Group achieved a pre-tax profit of RM10.6 million for the current quarter as compared to a pre-tax profit of RM4.0 million reported in the previous corresponding quarter. Revenue from the property development division improved as compared to the previous corresponding quarter resulting from higher revenue recognition from on-going and new projects while total revenue from construction and project management division declined as compared to the previous corresponding quarter due to completion of sizable external projects in mid 2009. The improved Group’s profit was due to higher contributions from the Group’s property division which has a higher margin as compared to the construction and project management division

- The Group’s revenue increased 32.5% for the current quarter as compared to the immediate preceding quarter. The increase was mainly attributed to higher billings from property development division. The Group recorded a 68.3% higher pre-tax profit for the current quarter as compared to the immediate preceding quarter. The improvement in profit was mainly due to profit recognized from on-going projects during the quarter

- The on-going development projects of the Group namely, Amaya Saujana, V Square and The Grove, together with the launching of Amaya Kuala Lumpur and new construction & project management contracts are expected to contribute positively to the earnings of the Group for the financial year ending 30 June 2011

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0627*0.9 = 0.0564, estimate PE on current price 0.445 = 7.89
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*0.9 = 0.054, estimate highest/lowest PE = 10.09/6.67
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0186*4 = 0.0744, estimate highest/lowest PE = 6.05/4.7
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0184*4 = 0.0736, estimate highest/lowest PE = 6.05/4.76
- Estimate next 4Q eps after 2009 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 19.5/17.5
- Estimate next 4Q eps after 2009 Q3 result announced = 0.003*4 = 0.012, estimate highest/lowest PE = 35.83/25
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0067*4 = 0.0268, estimate highest/lowest PE = 14.55/9.7

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