KLCI Stock - MUHIBAH / 5703 - 2010 Quarter 2

Market Cap : 397911250*0.9 = 358,120,125 (Small)
NTA per share : (338774-21600)/405947 = 0.78
P/BV : 0.9/0.78 = 1.1538
Forecast P/E now : 0.9/0.1064 = 8.46 (High)
ROE : 0.58% (Low)
DY : Not Applicable
Fixed Asset Turnover(3 year) : (0.8428+0.8486+0.7987)/3 = 0.83 (Moderate)
Liquidity Ratio : 1787321/1728779 = 1.0339 (Low)
Receivables Collection Period : (902111+782657)/2/(2098774/365) = 146 days
My Target Price : 0.85 (PE 8, EPS 0.1064)
My Decision : NOT BUY unless price below 0.86 or debt decrease more or order book increase more
My Comment : Revenue and profit recovering, cash increased, very high debt, order book value increasing, construction sector recover
Technical Support Price : 0.84
Risk Rating : HIGH

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

- The Group generated 9.1% lower consolidated revenue for the 6 months period ended 30 June 2010 as compared to last year corresponding period

- The Group registered 41% lower consolidated profit before tax for the current period ended 30 June 2010 under review as compared to the last corresponding period ended 30 June 2009. The Shipyard and Concession Divisions continue to be the main earnings contributor to the Group

- The Group generated 12.8% higher consolidated revenue for the current quarter under review as compared to the last quarter, representing an increase of 13% in the consolidated revenue during the current quarter

- The Group registered a more than double consolidated profit before tax for the current quarter
under review as compared to RM8.8 million recorded in the previous quarter

- As at 23 August 2010, the total outstanding secured order book in hand of the Group is RM2.53 billion, comprises of RM1.6 billion from Infrastructure Construction Division, RM450 million from Cranes Division and RM484 million from Shipyard Division. These outstanding secured order books will take us into 2013

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0266*4 = 0.1064, estimate PE on current price 0.895 = 8.41
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0135*4 = 0.054, estimate highest/lowest PE = 18.43/15.74
- No estimate for 2009 Q4 result
- No estimate for 2009 Q3 result
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0362*4 = 0.1448, estimate highest/lowest PE = 9.29/6.94 (DPS 0.025)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.039*4 = 0.156, estimate highest/lowest PE = 8.17/4.04 (DPS 0.025)

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