KLCI Stock - DRBHCOM / 1619 - 2011 Quarter 1

Market Cap : 1933237051*1.23 = 2,377,881,572.73 (Large)
NTA per share : (4708992-228725)/1933237 = 2.32
P/BV : 1.23/2.32 = 0.5302
Forecast P/E now : 1.23/0.1779 = 6.69 (Moderate)
ROE : 9.94%
DY : 0.04/1.23*100% = 3.25% (Low)
Fixed Asset Turnover(3 year) : (0.25+0.2887+0.4756)/3 = 0.3381 (Low)
Liquidity Ratio : 10850403/13584493 = 0.7987 (Weak)
Receivables Collection Period : (1320094+1438119)/2/(6248468/365) = 80 days (Acceptable)
My Target Price : 1.42+0.04 = 1.46 (PE 8, EPS 0.1779, DPS 0.04)
My Decision : BUY
My Comment : Revenue lower, profit increased but remain low, strong cash, navps increasing, receivables increasing
Technical Support Price : 1.2, 1.1
Risk Rating : MODERATE

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

- The Group’s revenue for the current quarter ended 30 June 2010 was marginally lower by 4% compared to the previous corresponding quarter ended 30 June 2009. The decline was mainly due to lower sales recorded by EON for the period under review due to migration of sales and after sales dealers to Proton Edar Sdn. Bhd. in July 2009

- For the current quarter ended 30 June 2010, the Group achieved a higher pre-tax profit of RM223.48 million compared to RM86.99 million in the previous corresponding quarter ended 30 June 2009. The increase is attributable to the recognition of the negative goodwill arising from accretion of equity interest in EON as disclosed in Note 4, improved performance of subsidiaries and also higher share of results of jointly controlled entities and associated companies

- The Group recorded a 29.9% lower pre-tax profit in the current quarter ended 30 June 2010 as compared to the preceding quarter ended 31 March 2010. The results included negative goodwill arising from accretion of interest in EON in the current quarter (refer to Note 4) and gain on disposal of estates in the preceding quarter. Excluding these items, the Group achieved a higher pre-tax profit of RM152.259 million in current quarter compared to RM107.354 million in the preceding quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.1873*0.95 = 0.1779, estimate PE on current price 1.23 = 6.69(DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0493*4*0.95 = 0.1873, estimate highest/lowest PE = 6.09/5.02 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0428*4 = 0.1712, estimate highest/lowest PE = 7.42/5.37 (DPS 0.04)

DRBHCOM latest news (English)