KLCI Stock - BPURI / 5932 - 2010 Quarter 3

BINA PURI HOLDINGS BERHAD

Par Value

:

1.00

My Forecast P/E now	:	(1.37-0.04)/0.1 = 13.3 (Moderate)
My Target Price	:	1.4+0.04 = 1.44 (PE 14, EPS 0.1, DPS 0.04)
My Decision	:	NOT BUY unless price below 1.3
My Comment	:	Revenue and profit increasing, bad cash flow, low liquidity ratio, very high gearing ratio, low working capital, order book increasing
Technical Support Price	:	1.25
Risk Rating	:	HIGH
OSK Target Price	:	1.79 (19 Nov 10)

Latest Market Capital (Capital Size)	145,433,309 (Small)
Return on Equity	8.91%
Dividend Yield	2.92%
Profit Margin	0.0144
Asset Turnover	1.5815
Tax Rate	0.2202
Net Asset Value Per Share	1.0
Net Tangible Asset per share	1.01
Price/Net Tangible Asset Per Share	1.29
Cash Per Share	0.21
Liquidity Current Ratio	1.011
Liquidity Quick Ratio	1.0015
Liquidity Cash Ratio	0.0391
Gearing Debt to Equity Ratio	5.5417
Gearing Debt to Asset Ratio	0.833
Average working capital per thousand Ringgit sale	0.6%
Average days to sell the inventory	2
Average days to collect the receivables	108

My notes based on 2010 quarter 3 report (number in '000):-
- For the period ended 30 September 2010, the Group achieved a 41.6% higher revenue and 50% higher profit before tax as compared to the previous corresponding period respectively

- The construction division recorded a revenue of RM799.7 million and profit before tax of RM9.4 million as compared to the previous corresponding period of RM465.2 million and RM4.0 million respectively. The improved performance of this division was mainly attributable to progressive profit recognised from the projects in progress

- The quarry and ready mix concrete division recorded a revenue of RM60.0 million and profit before tax of RM2.1 million as compared to the previous corresponding period of RM46.1 million and RM2.4 million respectively. The performance of this division remains satisfactory

- The polyol division recorded a revenue of RM10.6 million and incurred a loss of RM216,,000 as compared to the previous corresponding period of RM12.6 million and RM192,000 respectively. The performance of the division was affected by lack of export market due to the global economic slowdown and intense competition in the local market

- During the quarter under review, the Group achieved a revenue of RM294.8 million as compared to the immediate preceding quarter of RM267.7 million

- The Group’s recorded a profit before tax of RM4.2 million for the 3rd quarter ended 30 September 2010 as compared to the preceding quarter of RM4.4 million

- The Group current order book stands at RM3.16 billion

- Estimate next 4Q eps after 2010 Q3 result announced = 0.1, estimate PE on current price 1.37 = 13.3(DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0463*2 = 0.0926, estimate highest/lowest PE = 14.15/11.23 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0828(10% grow from 0.0753, added adjustment from last quarter estimated), estimate highest/lowest PE = 18.12/11.59 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0781(10% grow from 0.071), estimate highest/lowest PE = 16.26/9.8 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.078, estimate highest/lowest PE = 10.9/8.91 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.06, estimate highest/lowest PE = 15.17/11.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0484, estimate highest/lowest PE = 18.39/15.08 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0465, estimate highest/lowest PE = 19.78/14.19 (DPS 0.04)

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