KLCI Stock - P&O / 6009 - 2010 Quarter 3

Market Cap : 230527000*1.2 = 276,632,400 (Small)
NTA per share : (160999-1935-756)/111567 = 1.42
P/BV : 2.4/1.42 = 1.6901
Forecast P/E now : Not applicable
ROE : Not applicable
DY : Not Applicable
Fixed Asset Turnover(3 year) : (0.5354+0.4991+0.4536)/3 = 0.496 (Low)
Liquidity Ratio : Not applicable
Receivables Collection Period : (63275+31975)/2/(465880/365) = 37 days (Acceptable)
My Target Price : Not interested unless Prudential rumours confirm or profit show stable increase
My Decision : NOT BUY
My Comment : Revenue increasing year-by-year but profit decreasing year-by-year, bad cash flow, UK’s Prudential Holdings Ltd is interested to take a stake in the company
Technical Support Price : 1, 0.6
Risk Rating : HIGH

My notes based on 2010 quarter 3 report (number in '000):

- Group revenue was increased 22.4% compared to the corresponding quarter of the last financial year. The increase was mainly attributable to higher gross premium recorded by the insurance subsidiary. However, profit before tax was 55.5% lower compared to the corresponding quarter of the last financial year. This was mainly attributable to the absence of write back of allowance for diminution in value of investments at the insurance subsidiary in the current quarter

- Group revenue was 18.6% lower than preceding quarter. This was mainly attributable to lower gross premium recorded by the insurance subsidiary. However, profit before tax was 194.5% higher compared to the pre-tax profit in the preceding quarter. This was mainly attributable to lower net claims incurred, recorded at the insurance subsidiary

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