KLCI Stock - ASIAPAC / 4057 - 2011 Quarter 1

Market Cap : 975314960*0.115 = 112,161,220.40 (Small)
NTA per share : (295504-23942)/975315 = 0.28
P/BV : 0.115/0.28 = 0.4107
Forecast P/E now : 0.115/0.004 = 28.75 (Very High)
ROE : 3.97% (Low)
DY : Not applicable
Fixed Asset Turnover(3 year) : (0.1284+0.1807+0.2784)/3 = 0.1958 (Low)
Liquidity Ratio : 264894/81329 = 3.2571 (Low)
Receivables Collection Period : (11977+16175)/2/(70611/365) = 72 days (Acceptable)
My Target Price : 0.14 (PE 7, EPS 0.02)
My Decision : BUY
My Comment : Strong cash, above moderate debt and increased, property development growth
Technical Support Price : 0.1, 0.08
Risk Rating : HIGH

My notes based on 2011 quarter 1 report (number in '000):

- The Group recorded a decrease of 81% and 112% in turnover and pre-tax profit respectively as compared to the preceding year corresponding period

- The decrease in turnover and pre-tax profit were mainly due to lower revenue recognised for development activities, the effect of adopting FRS 139 whereby the write back of quoted investments was adjusted in the statement of comprehensive income (the write back of quoted investments for preceeding year corresponding period was adjusted against income statement) and higher provision of doubtful debts

- The Group recorded a pre-tax loss of RM1.055 million in the current quarter as compared to the pre-tax profit of RM12.63 million in the preceding quarter. It was due to lower profit recognized for development activities, effect of adopting FRS 139 whereby the write back of quoted investments was adjusted in the statement of comprehensive income (the write back of quoted investments for preceeding quarter was adjusted against income statement) and higher allowance of doubtful debts in the current quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.005*4 = 0.02, estimate PE on current price 0.115 = 5.75
- Estimate next 4Q eps after 2010 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 5/3.75
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0141, estimate highest/lowest PE = 7.09/4.96
- Estimate next 4Q eps after 2010 Q2 result announced = 0.018, estimate highest/lowest PE = 6.11/4.72
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0106, estimate highest/lowest PE = 10.85/8.49

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