KLCI Stock - NAIM / 5073 - 2010 Quarter 2

Market Cap : 250000000*3.59 = 897,500,000 (Medium)
NTA per share : (676837-9979)/236944 = 2.81
P/BV : 3.59/2.81 = 1.2776
Forecast P/E now : (3.59-0.1)/0.3562 = 9.8
ROE : 11.58% (Moderate)
DY : 0.1/3.59*100 = 2.79% (Low)
Fixed Asset Turnover(3 year) : (0.5499+0.5237+0.6455)/3 = 0.573 (Low)
Liquidity Ratio : 624850/277791 = 2.2494 (Moderate)
Receivables Collection Period : (277628+298191)/2/(576673/365) = 182 days
My Target Price : 3.92+0.1 = 4.02 (PE 11, EPS 0.3562, DPS 0.1)
My Decision : BUY
My Comment : Revenue and profit increasing, good cash flow, moderate debt and decreased, navps increasing, order book increasing, construction sector improving
Technical Support Price : 3.3
Risk Rating : LOW
OSK Target Price : 5.09 (02 Sep 10)

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

- The Group recorded 21.3% higher revenue for the period under review as compared to the corresponding period in 2009. The increase was mainly contributed by the construction division which reported higher percentage of completion for the projects undertaken thereby

- Profit before tax for the period under review was 4% lower against the same period in 2009

- Its associate, Dayang Enterprise Holdings Berhad, continues to contribute positively to the earnings of the Group for the period

- The revenue and profit before tax for the current quarter were 26.8% higher and 57.9% higher respectively, compared against the immediate preceding quarter

- Estimate next 4Q eps after 2010 Q2 result announced = 0.1619*2*1.1 = 0.3562, estimate PE on current price 3.59 = 9.8(DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2988 (10% drop from 0.332, due to profit decreasing), estimate highest/lowest PE = 11.28/8.57 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0793*4 = 0.3172, estimate highest/lowest PE = 11.41/8.89 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0902*4 = 0.3608, estimate highest/lowest PE = 9.87/6.59 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0955*4 = 0.382, estimate highest/lowest PE = 8.04/6.73 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0668*4 = 0.2672, estimate highest/lowest PE = 10.18/6.4 (DPS 0.13)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.1118*4 = 0.4472, estimate highest/lowest PE = 4.07/2.17 (DPS 0.13)

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