KLCI Stock - NAIM / 5073 - 2010 Quarter 4

Company Info

Market Capital (Capital Size)	785,000,000 (Medium)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(3.14-0.1)/0.3316 = 9.17 (Moderate)
Target Price	3.32+0.1 = 3.42 (PE 10.0, EPS 0.3316, DPS 0.1)
Decision	BUY
Comment	Revenue increased 38.4% and higher than preceding year corresponding quarter 1.2%, eps decreased 40.9% and also lower than preceding year corresponding quarter 12.9%, cash generated from operating not enough to cover investing & financing activities, liquidity ratio increasing at moderate level now, gearing ratio decreasing at below moderate level now, receivables increasing but offset by payables decreasing, provision of financial assistance status
First Support Price	3.0
Second Support Price	2.8
Risk Rating	MODERATE

Research House

OSK Target Price	5.1 (2011-01-05)
TA Target Price	5.53 (2011-01-26)
AMMB Target Price	5.09 (2011-02-09)
Kenanga Target Price	4.2 (2011-03-01)
MIDF Target Price	4.65 (2011-03-01)

Accounting Ratio

Return on Equity	13.13%
Dividend Yield	3.18%
Profit Margin	16.83%
Tax Rate	33.52%
Asset Turnover	0.5822
Net Asset Value Per Share	3.06
Net Tangible Asset per share	3.02
Price/Net Tangible Asset Per Share	1.09
Cash Per Share	0.17
Liquidity Current Ratio	2.4632
Liquidity Quick Ratio	1.5013
Liquidity Cash Ratio	0.1585
Gearing Debt to Equity Ratio	0.4381
Gearing Debt to Asset Ratio	0.3002
Working capital per thousand Ringgit sale	59.0%
Days to sell the inventory	171
Days to collect the receivables	193
Days to pay the payables	100

My notes based on 2010 quarter 4 report (number in '000):-
- The increase revenue mainly contributed by higher sales of properties as well as substantial completion of certain construction projects

- In addition, its oil and gas associate, Dayang Enterprise Holdings Berhad, continues to contribute positively to the earnings of the Group for the year

- Group profit before tax decreased substantially to RM33 million as compared to RM50 million in the immediate preceding quarter, mainly due to recognition of variation orders for and closure of certain projects during the quarter under review

- Estimate next 4Q eps after 2010 Q4 result announced = 0.0921*4*0.9 = 0.3316, estimate PE on current price 3.14 = 9.17(DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.2587*2*0.9 = 0.4657, estimate highest/lowest PE = 8.16/6.79 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1619*2*1.1 = 0.3562, estimate highest/lowest PE = 10.47/8.84 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2988 (10% drop from 0.332, due to profit decreasing), estimate highest/lowest PE = 11.28/8.57 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0793*4 = 0.3172, estimate highest/lowest PE = 11.41/8.89 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0902*4 = 0.3608, estimate highest/lowest PE = 9.87/6.59 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0955*4 = 0.382, estimate highest/lowest PE = 8.04/6.73 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0668*4 = 0.2672, estimate highest/lowest PE = 10.18/6.4 (DPS 0.13)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.1118*4 = 0.4472, estimate highest/lowest PE = 4.07/2.17 (DPS 0.13)

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