KLCI Stock - KPJ / 5878 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	2,350,228,933 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(4.05-0.15)/0.2226 = 17.52 (High)
Target Price	3.56+0.15 = 3.71 (PE 16.0, EPS 0.2226, DPS 0.15)
Decision	NOT BUY unless price below 3.7
Comment	Revenue decreased 0.7% but higher than preceding year corresponding quarter 12.5%, eps decreased 1.4% and also lower than preceding year corresponding quarter 15.7%, cash generated from operating enough to cover financing activities, liquidity ratio increased at low level now, high gearing ratio, all accounting periods are good, hospital increasing
First Support Price	3.8
Second Support Price	3.7
Risk Rating	MODERATE

Research House

OSK Target Price	4.62 (2011-01-19)
TA Target Price	4.32 (2011-01-19)
RHB Target Price	4.94 (2011-04-08)
MIDF Target Price	4.6 (2011-04-14)

Accounting Ratio

Return on Equity	13.74%
Dividend Yield	3.61%
Profit Margin	10.22%
Tax Rate	22.27%
Asset Turnover	1.0216
Net Asset Value Per Share	1.25
Net Tangible Asset per share	1.03
Price/Net Tangible Asset Per Share	3.7
Cash Per Share	0.31
Liquidity Current Ratio	1.3516
Liquidity Quick Ratio	1.2653
Liquidity Cash Ratio	0.4226
Gearing Debt to Equity Ratio	1.0042
Gearing Debt to Asset Ratio	0.4728
Working capital per thousand Ringgit sale	9.6%
Days to sell the inventory	9
Days to collect the receivables	66
Days to pay the payables	77

My notes based on 2010 quarter 4 report (number in '000):-
- The profit before taxation for the current quarter has increased by 12.4% to RM44.3 million from RM39.4 million in the corresponding quarter 2009. The increase is in line with the increase in revenue of the hospitals

- The profit before taxation for the current quarter of RM44.3 million has increased by 2.8% compared to the preceding quarter of RM43.1 million. The increase in the net profit before tax is in line with the increase in revenue and contribution from the hospitals

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0512*4*1.1 = 0.2253, estimate PE on current price 4.05 = 17.52(DPS 0.15)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0512*4*1.1 = 0.2253, estimate highest/lowest PE = 17.18/15.71 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0506*4*1.1 = 0.2226, estimate highest/lowest PE = 17.34/13.7 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2174, estimate highest/lowest PE = 17.25/13.02 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1359*4 = 0.5436(after split 2.5 = 0.2174), estimate highest/lowest PE = 13.89/10.9 (DPS 0.2 or 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1291*4 = 0.5164, estimate highest/lowest PE = 12.24/6.29 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1188*4 = 0.4752, estimate highest/lowest PE = 10.61/6.92 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.1046*4 = 0.4184, estimate highest/lowest PE = 8.29/6.74 (DPS 0.07)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.107*4 = 0.428, estimate highest/lowest PE = 6.99/6.17 (DPS 0.07)

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