KLCI Stock - A&M / 5959 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	166,104,029 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.455/0.0312 = 14.58 (High)
Target Price	0.0312*10.0 = 0.31 (PE 10.0, EPS 0.0312)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 19% but lower than preceding year corresponding quarter 12.8%, eps increased 36.4% and also higher than preceding year corresponding quarter 45.2%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at strong level now, lower gearing ratio at below moderate level now, all accounting ratio also very high
First Support Price	0.44
Second Support Price	0.4
Risk Rating	HIGH

Accounting Ratio

Return on Equity	2.42%
Dividend Yield	-
Profit Margin	17.16%
Tax Rate	23.97%
Asset Turnover	0.199
Net Asset Value Per Share	1.28
Net Tangible Asset per share	1.23
Price/Net Tangible Asset Per Share	0.39
Cash Per Share	0.15
Liquidity Current Ratio	5.0363
Liquidity Quick Ratio	1.3882
Liquidity Cash Ratio	0.7269
Gearing Debt to Equity Ratio	0.2709
Gearing Debt to Asset Ratio	0.2085
Working capital per thousand Ringgit sale	255.4%
Days to sell the inventory	971
Days to collect the receivables	148
Days to pay the payables	246

My notes based on 2011 quarter 1 report (number in '000):
- The lower revenue was mainly attributable to the lower sales contribution from the Property and Construction Division following the completion of certain ongoing projects

- Higher pbt mainly due to improved profit margin achieved by the Plantation Division

- Estimate next 4Q eps after 2011 Q1 result announced = (0.0066+0.009)*2 = 0.0312, estimate PE on current price 0.455 = 14.58
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0417*1.05 = 0.0438, estimate highest/lowest PE = 13.13/11.07
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0417*1.1 = 0.0459(0.0417 is recent 4Q cum_eps), estimate highest/lowest PE = 13.73/9.91
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0376*1.05 = 0.0395(5% increase from 0.0376), estimate highest/lowest PE = 15.32/12.41
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0376, estimate highest/lowest PE = 20.35/15.43
- Estimate 2009 eps after 2009 Q3 result announced = 0.0297+(0.041+0.0301)/2 = 0.0475, estimate highest/lowest PE = 17.79/11.05
- Estimate 2009 eps after 2009 Q2 result announced = 0.0518+(0.0089-0.0035) = 0.0572, estimate highest/lowest PE = 13.99/8.22
- Estimate 2009 eps after 2009 Q1 result announced = 0.0518+(0.0015-0.0007) = 0.0526, estimate highest/lowest PE = 17.02/7.41
- Estimate 2009 eps after 2008 Q4 result announced = 0.0518, estimate highest/lowest PE = 9.27/5.02

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