KLCI Stock - MYEG / 0138 - 2010 Quarter 4

Market Cap : 601051000*0.8 = 480,840,800 (Small)
NTA per share : (84443-12016)/601051 = 0.12
P/BV : 0.8/0.12 = 6.6667
Forecast P/E now : (0.81-0.005)/0.0427 = 18.62 (High)
ROE : 24.69% (High)
DY : 0.005/0.8*100 = 0.625% (Low)
Fixed Asset Turnover(4 year) : (0.6495+0.6504+0.7553+0.6602)/4 = 0.6789 (Low)
Liquidity Ratio : 33481/6976 = 4.7995 (Strong)
Receivables Collection Period : (17117+11769)/2/(62094/365) = 84 days (Acceptable)
My Target Price : 0.854+0.005 = 0.86 (EPS 0.0427, PE 20, DPS 0.005)
My Decision : NOT BUY unless price below 0.75
My Comment : Revenue and profit increasing, cash decreased to below 9 million, low debt and slightly decreased, navps same
Technical Support Price : 0.7
Risk Rating : MODERATE

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

- The Group posted 24.1% higher revenue and 41.6% higher profit after taxation (“PAT”) for the fourth financial quarter (“Q4 FY2010”) as compared to the corresponding quarter (“Q4 FY2009”)

- For the financial year ended 30 June 2010 (“FY2010”), the Group recorded 18.3% higher revenue and 21.5% higher PAT as compared to the corresponding period (“FY2009”)

- The increase in revenue and PAT are primarily attributable to:-
i) an overall increase in volume from all segment of services due to the ongoing marketing
campaign which has enhanced MYEG’s brand name, and
ii) the launch of the new online maid permit renewal services with the Immigration Department

- However, this was offset by the increase in marketing expenses as well as an increase in personnel related costs

- For the Quarter under review, the Group recorded revenue of RM17.10 million, an increase of RM0.54 million as compared to Q3 FY2010 revenue. PAT is consistent as compared to Q3 FY2010 mainly due to increased expenses from the marketing campaign to enhance MYEG’s brand name

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0097*4*1.1 = 0.0427, estimate PE on current price 0.81 = 18.62(DPS 0.005)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0088*4 = 0.0352, estimate highest/lowest PE = 24.57/14.91 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0079*4 = 0.0316, estimate highest/lowest PE = 20.57/12.66 (DPS 0.01)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0074*4 = 0.0296, estimate highest/lowest PE = 18.44/13.88 (DPS 0.0092)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0069*4 = 0.0276, estimate highest/lowest PE = 19.63/14.37 (DPS 0.01835)

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