KLCI Stock - KAF / 5096 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	177,600,000 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.48-0.075)/0.191 = 7.36 (Moderate)
Target Price	1.53+0.075 = 1.60 (PE 8.0, EPS 0.191, DPS 0.075)
Decision	NOT BUY unless price below 1.45
Comment	Revenue decreased 10.6% but higher than preceding year corresponding quarter 40%, eps decreased 4.2% but higher than preceding year corresponding quarter 2.1%, negative free cash flow and negative net cash flow slightly reduced, liquidity ratio decreasing to low level now, gearing ratio increasing to high level now, explore retail electronic broker network
First Support Price	1.4
Second Support Price	1.25
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	9.53%
Dividend Yield	10.14%
Profit Margin	104.17%
Tax Rate	26.15%
Asset Turnover	0.0729
Net Asset Value Per Share	1.95
Net Tangible Asset per share	1.88
Price/Net Tangible Asset Per Share	0.79
Cash Per Share	1.98
Liquidity Current Ratio	1.8648
Liquidity Quick Ratio	1.8648
Liquidity Cash Ratio	0.9691
Gearing Debt to Equity Ratio	1.0515
Gearing Debt to Asset Ratio	0.5122
Working capital per thousand Ringgit sale	606.3%
Days to sell the inventory	-
Days to collect the receivables	2292
Days to pay the payables	3314

My notes based on 2011 quarter 2 report (number in '000):-
- The Group’s profit before tax for the quarter ended 30 November 2010 of RM9.69 million is higher by RM0.79 million compared to the corresponding quarter figure of RM8.90 million due mainly to higher gross profit offset by lower other income

- The Group’s profit before tax of RM9.69 million for the current interim period reported on, is lower than the preceding interim period’s profit before tax of RM10.08 million by RM0.39 million, due mainly to lower other income for the current interim period

- Estimate next 4Q eps after 2011 Q2 result announced = 0.1819*1.05 = 0.191, estimate PE on current price 1.48 = 7.36(DPS 0.075)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1806*1.05 = 0.1896, estimate highest/lowest PE = 7.94/6.99 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1729*0.9 = 0.1556(10% drop due to assets decreased), estimate highest/lowest PE = 9.03/7.49 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0443(average from recent 3 quarter)*4 = 0.1772, estimate highest/lowest PE = 7.93/6.35 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2262, estimate highest/lowest PE = 6.26/5.11 (DPS 0.075)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2184, estimate highest/lowest PE = 6.8/4.97 (DPS 0.075)

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