KLCI Stock - TONGHER / 5010 - 2010 Quarter 2

Market Cap : 127430000*1.79 = 228,099,700 (Small)
NTA per share : 283535/127406 = 2.23
P/BV : 1.79/2.23 = 0.8027
Forecast P/E now : (1.79-0.05)/0.1694 = 10.27 (High)
ROE : 6.29% (Low)
DY : 0.05/1.79*100 = 2.79% (Low)
Fixed Asset Turnover(3 year) : (0.6105+0.9038+1.1082)/3 = 0.8742 (Moderate)
Liquidity Ratio : 208607/49940 = 4.1772 (Strong)
Receivables Collection Period : (26408+15855)/2/(224826/365) = 34 days (Acceptable)
My Target Price : Not interested unless revenue and profit increase more
My Decision : NOT BUY
My Comment : Revenue and profit increased, cash reduced around 42%, low debt but slightly increased, navps remain same
Technical Support Price : 1.7
Risk Rating : MODERATE (due to result not that good but PE consider high; healthy financial)

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

- The Group reported higher profit before taxation in this reporting quarter as compared to the corresponding quarter in the previous year is due to lower cost of raw materials and higher selling price for products produced

- The higher profit before taxation in the current reporting quarter as compared to the preceding quarter is due to lower cost of raw materials and a result of cost containment measures undertaken

- Estimate next 4Q eps after 2010 Q2 result announced = 0.154*1.1 = 0.1694(0.154 is recent 4Q cum_eps), estimate PE on current price 1.79 = 10.27(DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0347(average of recent 3Q)*4 = 0.1388, estimate highest/lowest PE = 13.54/11.53 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0469*4 = 0.1876, estimate highest/lowest PE = 10.61/8.8 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0278*4 = 0.1112, estimate highest/lowest PE = 16.19/14.39 (DPS 0.05)

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