KLCI Stock - WCT / 9679 - 2010 Quarter 3

WCT BERHAD

Par Value

:

0.50

My Forecast P/E now	:	(3.06-0.1)/0.1699 = 17.42 (High)
My Target Price	:	Not interested unless revenue and profit increase more
My Decision	:	NOT BUY
My Comment	:	Revenue and PBT decreased, cash decreasing, liquidity ratio still low, gearing ratio still very high, working capital still low, long receivables collection period
Technical Support Price	:	3, 2.8
Risk Rating	:	HIGH
OSK Target Price	:	3.66 (19 Nov 10)

Latest Market Capital (Capital Size)	2,406,090,665 (Very Large)
Return on Equity	9.0%
Dividend Yield	3.27%
Profit Margin	0.1674
Asset Turnover	0.6347
Tax Rate	0.0975
Net Asset Value Per Share	1.53
Net Tangible Asset per share	1.53
Price/Net Tangible Asset Per Share	1.97
Cash Per Share	0.78
Liquidity Current Ratio	1.2689
Liquidity Quick Ratio	1.2126
Liquidity Cash Ratio	0.4008
Gearing Debt to Equity Ratio	2.0167
Gearing Debt to Asset Ratio	0.6275
Average working capital per thousand Ringgit sale	16.7%
Average days to sell the inventory	17
Average days to collect the receivables	227

My notes based on 2010 quarter 3 report (number in '000):-
- For the quarter under review, the Group achieved revenue of RM357 million as compared with RM1312 million of the corresponding quarter. Net profit after taxation and minority interest of the Group was RM31 million as compared with RM33 million of the corresponding quarter

- For the quarter under review, the Group recorded revenue and net profit after taxation and minority interest of RM357 million and RM31 million as compared to revenue and profit after taxation and minority interest of RM514 million and RM34 million reported in the immediate preceding quarter

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0809*2*1.05 = 0.1699, estimate PE on current price 3.04 = 17.3(DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1703*1.1 = 0.1873, estimate highest/lowest PE = 17.14/14.26 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0441*4*0.9 = 0.1588, estimate highest/lowest PE = 17.51/14.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 18.88/15.13 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 16.94/13.75 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0535*4 = 0.214, estimate highest/lowest PE = 12.85/11.07 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.05*4 = 0.2, estimate highest/lowest PE = 13.83/8.48 (DPS 0.095, economy crisis)

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