KLCI Stock - MALTON / 6181 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	276,940,577 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	0.795/0.0636 = 12.50 (High)
Target Price	0.0636*10.0 = 0.64 (PE 10.0, EPS 0.0636)
Decision	NOT BUY unless price below 0.57
Comment	Revenue decreased and also lower than preceding year corresponding quarter, eps second consecutive quarter increasing but still lower than preceding year corresponding quarter, neither got free nor positive net cash flow, moderate liquidity ratio, gearing ratio decreasing at moderate level now, inventory period increasing
First Support Price	0.7
Second Support Price	0.43
Risk Rating	HIGH

Research House

S&P Target Price

0.53 (2010-09-02)

Accounting Ratio

Return on Equity	4.78%
Dividend Yield	1.89%
Profit Margin	11.48%
Tax Rate	29.75%
Asset Turnover	0.4714
Net Asset Value Per Share	1.29
Net Tangible Asset per share	1.29
Price/Net Tangible Asset Per Share	0.56
Cash Per Share	0.14
Liquidity Current Ratio	2.5069
Liquidity Quick Ratio	1.1514
Liquidity Cash Ratio	0.2476
Gearing Debt to Equity Ratio	0.586
Gearing Debt to Asset Ratio	0.3695
Working capital per thousand Ringgit sale	89.6%
Days to sell the inventory	330
Days to collect the receivables	196
Days to pay the payables	157

My notes based on 2011 quarter 1 report (number in '000):-
- Group revenue decreased by 13.7% to RM68.8 million for the current quarter as compared to RM79.7 million reported in the previous corresponding quarter while pre-tax profit reduced by 7.1% to RM7.9 million for the current quarter from RM8.5 million reported in the previous corresponding quarter. Revenue and profit from the property development division declined as compared to the previous corresponding quarter due to completion and hand over of Pearl Villas in December 2009 while total revenue and profit from construction and project management division also declined as compared to the previous corresponding quarter due to completion of projects

- Group revenue decreased to RM68.8 million for the current quarter as compared to RM86.0 million for the immediate preceding quarter. The decrease was mainly attributed to lower billings from property and construction and project management divisions. The Group recorded a pre-tax profit of RM7.9 million for the current quarter as compared to the pre-tax profit of RM10.6 million for the immediate preceding quarter. The lower pre-tax profit achieved for the current quarter was mainly attributed to lower billings of Amaya Saujana project as it is already at the final stage of completion

- The Group recorded a marginal increase in profit after tax to RM5.5 million for the current quarter as compared to the profit after tax of RM5.3 million for the immediate preceding quarter due to lower tax provision as a result of lower non-tax deductible expenses

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0159*4 = 0.0636, estimate PE on current price 0.795 = 12.5
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0627*0.9 = 0.0564, estimate highest/lowest PE = 15.25/7.54
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*0.9 = 0.054, estimate highest/lowest PE = 10.09/6.67
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0186*4 = 0.0744, estimate highest/lowest PE = 6.05/4.7
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0184*4 = 0.0736, estimate highest/lowest PE = 6.05/4.76
- Estimate next 4Q eps after 2009 Q4 result announced = 0.005*4 = 0.02, estimate highest/lowest PE = 19.5/17.5
- Estimate next 4Q eps after 2009 Q3 result announced = 0.003*4 = 0.012, estimate highest/lowest PE = 35.83/25
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0067*4 = 0.0268, estimate highest/lowest PE = 14.55/9.7

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