KLCI Stock - ANNJOO / 6556 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	1,437,447,489 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.75-0.1234)/0.2004 = 13.11 (High)
Target Price	2.40+0.1234 = 2.53 (PE 12.0, EPS 0.2004, DPS 0.1234)
Decision	Not interested unless coming quarter also record strong result
Comment	Revenue increased 30% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 66.8%, eps largely increased and also higher than preceding year corresponding quarter 1.9%, cash generated from operating is just enough to cover all expenses, stronger liquidity ratio but still at low level now, lower gearing ratio but still at high level now, inventory ratio still very high
First Support Price	2.65
Second Support Price	2.45
Risk Rating	MODERATE

Research House

Maybank Target Price	3.3 (2011-02-09)
RHB Target Price	3.02 (2011-02-22)
OSK Target Price	2.89 (2011-02-25)
CIMB Target Price	3.74 (2011-05-27)
HLG Target Price	3.11 (2011-05-27)
MIDF Target Price	2.8 (2011-05-27)

Accounting Ratio

Return on Equity	12.94%
Dividend Yield	4.49%
Profit Margin	10.28%
Tax Rate	19.15%
Asset Turnover	0.7129
Net Asset Value Per Share	1.44
Net Tangible Asset per share	1.43
Price/Net Tangible Asset Per Share	2.03
Cash Per Share	0.08
Liquidity Current Ratio	1.0293
Liquidity Quick Ratio	0.2012
Liquidity Cash Ratio	0.0423
Gearing Debt to Equity Ratio	1.4371
Gearing Debt to Asset Ratio	0.5889
Working capital per thousand Ringgit sale	2.3%
Days to sell the inventory	257
Days to collect the receivables	45
Days to pay the payables	32

My notes based on 2011 quarter 1 report (number in '000):-
- Higher revenue mainly attributable to higher steel prices and sales tonnage of various steel products which were boosted by upturns domestic demand and export market

- Higher profitability was mainly due to steel price recovery and improved demands coupled with effective execution in strategic procurement and inventory management during the quarter under review

- Estimate next 4Q eps after 2010 Q1 result announced = (0.04+0.0602)*2 = 0.2004, estimate PE on current price 2.75 = 13.11(DPS 0.1234)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04*4 = 0.16, estimate highest/lowest PE = 19.31/16.69 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0517*4 = 0.2068(0.0517 is average eps of Q110,Q409,Q308, due to steel price decreasing), estimate highest/lowest PE = 15.91/11.9 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0591*4 = 0.2364, estimate highest/lowest PE = 12.39/9.31 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.048*4 = 0.192, estimate highest/lowest PE = 15.68/13.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0682*4 = 0.2728, estimate highest/lowest PE = 12.17/8.69 (DPS 0.03)

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