KLCI Stock - MAMEE / 5282 - 2010 Quarter 2

Market Cap : 151332995*3.34 = 505,452,203.30 (Medium)
NTA per share : (238545-459)/145967 = 1.63
P/BV : 3.34/1.63 = 2.049
Forecast P/E now : (3.34-0.12)/0.3088 = 10.43 (High)
ROE : 19.56% (Moderate)
DY : 0.12/3.34*100 = 3.59% (Low)
Fixed Asset Turnover(3 year) : (1.4533+1.489+1.5762)/3 = 1.5062 (High)
Liquidity Ratio : 186515/69639 = 2.6783 (Moderate)
Receivables Collection Period : (84589+68076)/2/(452569/365) = 61 days (Acceptable)
My Target Price : 3.09+0.12 = 3.21 (PE 10, EPS 0.3088, DPS 0.12)
My Decision : NOT BUY unless below 3.2
My Comment : Revenue increased but profit slow down, good cash flow, below moderate debt but slightly increased, CPO price increasing
Technical Support Price : 3.3, 3
Risk Rating : MODERATE
OSK Target Price : 4 (24 Aug 10)

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

- For the quarter under review, the Group recorded 17% increase in revenue compared to the previous year's corresponding period, as a result of higher sales from the local and foreign markets due to effective advertising and promotion activities, as well as the strengthening of distribution channels. Profit before tax decreased 1.5% for the quarter compared to the previous corresponding quarter last year, due to higher expenditure in selling and distribution incurred for the quarter under review, including Advertising & Promotion (A&P) expenses for new products such as the Mister Potato Rice Crisps and Mie Goreng Indonesia, and the expansion of sales force in order to attain wider penetration in the local market

- The Group recorded slightly higher revenue in the second quarter this year as compared with the immediate preceding quarter, increasing 4% year-on-year, on the back of greater consumer demand. However, profit before tax reduced by 17% as a result of higher spending on sales and marketing

- Estimate next 4Q eps after 2010 Q2 result announced = 0.1544*2 = 0.3088, estimate PE on current price 3.34 = 10.43(DPS 0.12)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.082*4 = 0.328, estimate highest/lowest PE = 11.16/8.17 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.528(5% grow from 0.5029), after bonus = 0.2925, estimate highest/lowest = 10.53/7.79 (DPS 0.12)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.5456, estimate highest/lowest PE = 7.59/4.58 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.521, estimate highest/lowest PE = 7.14/3.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.485, estimate highest/lowest PE = 5.15/4.39 (DPS 0.1)

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