KLCI Stock - JOBST / 0058 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	896,783,998 (Medium)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(2.82-0.06)/0.1441 = 19.15 (Moderate)
Target Price	2.88+0.06 = 2.94 (PE 20.0, EPS 0.1441, DPS 0.06)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 3.5% but higher than preceding year corresponding quarter 26.8%, eps increased 18.5% and also higher than preceding year corresponding quarter 76.9%, both positive free and net cash flow decreased, liquidity ratio decreased at moderate level now, below moderate gearing ratio, high payables period but is as usual
First Support Price	2.8
Second Support Price	2.7
Risk Rating	MODERATE

Research House

HwangDBS Target Price	3.3 (2010-12-27)
OSK Target Price	2.32 (2011-01-19)

Accounting Ratio

Return on Equity	24.33%
Dividend Yield	1.95%
Profit Margin	40.71%
Tax Rate	0.13%
Asset Turnover	0.5717
Net Asset Value Per Share	0.52
Net Tangible Asset per share	0.51
Price/Net Tangible Asset Per Share	5.59
Cash Per Share	0.19
Liquidity Current Ratio	2.1168
Liquidity Quick Ratio	2.1168
Liquidity Cash Ratio	1.7218
Gearing Debt to Equity Ratio	0.2187
Gearing Debt to Asset Ratio	0.1784
Working capital per thousand Ringgit sale	34.5%
Days to sell the inventory	-
Days to collect the receivables	45
Days to pay the payables	178

My notes based on 2010 quarter 4 report (number in '000):-
- For the quarter ended 31 December 2010, consolidated revenue amounted to RM29.4 million, approximately RM6.2 million or 26.8% higher than the RM23.2 million revenue for the corresponding quarter in the preceding financial year. The increase was mainly attributed to higher revenues from JobStreet ESSENTIAL (online job posting service) and JobStreet IMPACT (career website management service) by 27.1% and 31.3% respectively

- Results from operating activities rose 11.3% as a result of higher revenues from JobStreet ESSENTIAL and JobStreet IMPACT which also led to a higher gross profit margin. Operating expenses increased by 36.4% mainly due to higher staff costs and marketing expenses. On a pre-tax basis, the Group’s profit before taxation (“PBT”) recorded growth of 12.6% to RM11.9 million compared with RM10.6 million reported in the corresponding quarter in the preceding financial year. During the current quarter, the Group’s share of profit in associates and a jointly-controlled entity amounted to RM1.1 million which positively impacted profitability. In the corresponding quarter in 2009, there was a net write-back of RM1.1 million arising from the reversal of diminution in value of the Group’s investments in quoted securities and additional impairment losses on an associate

- The Group’s profit after taxation (“PAT”) increased by 53.7% to RM11.9 million compared with the RM7.8 million reported in the corresponding quarter in 2009. The higher rate of growth in PAT compared with PBT was due to lower tax expense of a subsidiary arising from the recognition of deferred tax asset during the current quarter

- For the year ended 31 December 2010, the Group’s revenue and PBT amounted to RM117.1 million and RM55.2 million respectively, or an increase of 26.9% and 50.7% respectively compared with the preceding financial year. Overall, the growth during the year was mainly attributed to the positive impact of the economic recovery on the Group’s operations in its core markets of Malaysia, Singapore and Philippines. In addition, the Group’s share of profits in 104 Corp further contributed to the Group’s consolidated earnings in 2010

- For the current quarter under review, the Group recorded revenue of RM29.4 million representing a 3.5% decrease compared with RM30.4 million recorded in the preceding quarter. This decrease was mainly due to lower sales from JobStreet ESSENTIAL due to seasonality factors and timing of dividends received from the Group’s quoted investment in Hong Kong

- In terms of profitability, PBT in the current quarter declined by 19.6% mainly due to the impact of lower sales from JobStreet ESSENTIAL, higher operating expenses, lower share of profits from associated companies and impairment of intangible assets

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0343*4*1.05 = 0.1441, estimate PE on current price 2.82 = 19.19(DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.51/18.42 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.78/13.98 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0991 (5% grow from 0.0944), estimate highest/lowest PE = 20.66/18.54 (DPS 0.0425)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0895 (around 5% grow from 0.085), estimate highest/lowest PE = 23.8/16.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0892, estimate highest/lowest PE = 17.49/15.02 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.084, estimate highest/lowest PE = 16.49/13.63 (DPS 0.035)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0899, estimate highest/lowest PE = 14.07/11.4 (DPS 0.035)

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