KLCI Stock - HSL / 6238 - 2010 Quarter 2

Market Cap : 582676000*1.89 = 1,101,257,640 (Large)
NTA per share : 315591/549155 = 0.57
P/BV : 1.89/0.57 = 3.3158
Forecast P/E now : (1.89-0.026)/0.1205 = 15.47 (High)
ROE : 21.58% (High)
DY : 0.026/1.89*100 = 1.38% (Low)
Fixed Asset Turnover(3 year) : (0.7825+0.7531+0.7786)/3 = 0.7714 (Low)
Liquidity Ratio : 393192/208057 = 1.8898 (Low)
Receivables Collection Period : (275595+212433)/2/(418701/365) = 212 days
My Target Price : 1.89+0.03 = 1.91 (PE 15, EPS 0.1263, DPS 0.026)
My Decision : NOT BUY unless price below 1.7
My Comment : Revenue and profit QbQ increasing stop but still higher than preceding year corresponding quarter, slightly bad cash flow, above moderate debt and slightly increased, navps increasing
Technical Support Price : 1.78, 1.66
Risk Rating : MODERATE
OSK Target Price : 1.92 (22 Sep 10)

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

- The Group’s revenue for the quarter under review is 35.5% higher against the preceding year corresponding quarter’s. Net profit before tax of the Group for the current quarter is 40.2% higher as compared to the preceding year’s corresponding quarter

- The net profit before tax of the Group for the current quarter is 31.8% higher compared to the immediate preceding quarter on the back of the Group’s revenue 20.4% higher

- Estimate next 4Q eps after 2010 Q2 result announced = 0.0574*2*1.1 = 0.1263, estimate PE on current price 1.89 = 14.76(DPS 0.026)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 14.95/11.49 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 13.88/11.05 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0281*4 = 0.1124, estimate highest/lowest PE = 11.96/8.75 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0233*4 = 0.0932, estimate highest/lowest PE = 13.13/9.7 (DPS 0.016)

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