KLCI Stock - AJIYA / 7609 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	127,371,830 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	1.84/0.2222 = 8.28 (High)
Target Price	0.2222*7.0 = 1.56 (PE 7.0, EPS 0.2222)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 1% and also higher than preceding year corresponding quarter 5.4%, eps increased 2.1% but lower than preceding year corresponding quarter 35.2%, cash generated not even enough to cover bank borrowing repayment, better liquidity at high level now, better gearing ratio at below moderate level now, all accounting periods are good, expanded operation to Thailand
First Support Price	1.8
Second Support Price	1.7
Risk Rating	MODERATE

Research House

OSK Target Price

2.25 (2011-04-08)

Accounting Ratio

Return on Equity	7.44%
Dividend Yield	3.26%
Profit Margin	8.10%
Tax Rate	18.02%
Asset Turnover	1.0786
Net Asset Value Per Share	2.89
Net Tangible Asset per share	2.89
Price/Net Tangible Asset Per Share	0.67
Cash Per Share	0.41
Liquidity Current Ratio	3.8404
Liquidity Quick Ratio	2.4735
Liquidity Cash Ratio	0.5931
Gearing Debt to Equity Ratio	0.2767
Gearing Debt to Asset Ratio	0.1787
Working capital per thousand Ringgit sale	40.7%
Days to sell the inventory	78
Days to collect the receivables	98
Days to pay the payables	41

My notes based on 2011 quarter 1 report (number in '000):-
- For the quarter under review, the Group achieved a turnover of RM80.769 million, which is 5% higher compared to preceding year corresponding quarter of RM76.650 million. The increase was mainly due to better market sentiment

- The Group recorded a profit before tax of RM6.542 million for the current quarter compared to immediate preceding quarter of RM5.665 million. The increase was due to higher profit margin of certain products for the current quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0529*4*1.05 = 0.2222, estimate PE on current price 1.84 = 6.55
- Estimate next 4Q eps after 2010 Q4 result announced = 0.07(average eps from recent 3 quarter)*4 = 0.28, estimate highest/lowest PE = 7.46/6.25 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.08(average eps)*4*0.95 = 0.304, estimate highest/lowest PE = 6.84/6.38 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.3427, estimate highest/lowest PE = 6.19/5.46 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0816*4 = 0.3264+0.0163 = 0.3427 (5% grow from 0.3264 due to recovery from previous weak market), estimate highest/lowest PE = 6.16/4.99 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.312(2% drop from 0.3184), estimate PE on current price 2.14 = 6.67(DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.28, estimate highest/lowest PE = 6.39/5.18 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.23, estimate highest/lowest PE = 6.52/5.22 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.26, estimate highest/lowest PE = 5.15/4.46 (DPS 0.06)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.26, estimate highest/lowest PE = 4.69/3.65 (DPS 0.06)

AJIYA latest news (English)

AJIYA latest news (Chinese)