KLCI Stock - P&O / 6009 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	195,492,090 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.795-0.0060)/0.1108 = 7.12 (Moderate)
Target Price	0.89+0.0060 = 0.89 (PE 8.0, EPS 0.1108, DPS 0.0060)
Decision	BUY
Comment	Revenue decreased 3% and also lower than preceding year corresponding quarter 0.7%, eps decreased 60.8% but higher than preceding year corresponding quarter 120.1%, largely over spent in operating activities, weaker liquidity ratio but still at strong level now, higher gearing ratio at very high level now, all accounting periods are acceptable, insurance division maintaining high profit
First Support Price	0.78
Second Support Price	0.71
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	20.60%
Dividend Yield	0.75%
Profit Margin	12.18%
Tax Rate	31.26%
Asset Turnover	0.4801
Net Asset Value Per Share	0.79
Net Tangible Asset per share	0.78
Price/Net Tangible Asset Per Share	1.12
Cash Per Share	2.55
Liquidity Current Ratio	5.0483
Liquidity Quick Ratio	4.2347
Liquidity Cash Ratio	3.6378
Gearing Debt to Equity Ratio	4.163
Gearing Debt to Asset Ratio	0.8063
Working capital per thousand Ringgit sale	144.2%
Days to sell the inventory	122
Days to collect the receivables	78
Days to pay the payables	51

My notes based on 2011 quarter 1 report (number in '000):-
- Group revenue was RM114,730,000 compared to RM115,514,000 in the corresponding quarter of the last financial year. The decrease was mainly attributable to lower gross premium recorded by the insurance subsidiary. Profit before tax of RM13,975,000 was reported compared to pre-tax loss of RM27,495,000 in the corresponding quarter of the last financial year. This was mainly attributable to lower net claims incurred during the current quarter as compared to that in the corresponding quarter of the last financial year, recorded at the insurance subsidiary

- Group revenue of RM114,730,000 was lower than the RM118,309,000 reported in the preceding quarter. This was mainly attributable to lower gross premium recorded by the insurance subsidiary. Profit before tax of RM13,975,000 was lower compared to the pre-tax profit of RM26,882,000 in the preceding quarter due mainly to higher net claims incurred during the current quarter as compared to that in the preceding quarter, recorded at the insurance subsidiary

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0277*4 = 0.1108(ROE 3.5% per quarter), estimate PE on current price 0.795 = 7.12(DPS 0.006)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.05*4/2 = 0.1(ROE 3.5% per quarter), estimate highest/lowest PE = 9.6/7.7

P&O latest news (English)

P&O latest news (Chinese)