KLCI Stock - BHIC / 8133 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	1,011,222,488 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(4.07-0.065)/0.1903 = 21.05 (High)
Target Price	2.28+0.065 = 2.35 (PE 12.0, EPS 0.1903, DPS 0.065)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 49.1% but higher than preceding year corresponding quarter 32%, eps decreased 12% and is second consecutive quarter decreasing and also lower than preceding year corresponding quarter 35.8%, cash from operating not enough to cover operating expenses however cash from financing just right enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at high level now, receivables & payables ratio more high
First Support Price	4.0
Second Support Price	3.8
Risk Rating	HIGH

Research House

HwangDBS Target Price

6.55 (2011-03-25)

Accounting Ratio

Return on Equity	14.36%
Dividend Yield	1.60%
Profit Margin	15.95%
Tax Rate	27.06%
Asset Turnover	0.5584
Net Asset Value Per Share	1.71
Net Tangible Asset per share	1.69
Price/Net Tangible Asset Per Share	2.5
Cash Per Share	0.32
Liquidity Current Ratio	1.1469
Liquidity Quick Ratio	1.1044
Liquidity Cash Ratio	0.111
Gearing Debt to Equity Ratio	1.7505
Gearing Debt to Asset Ratio	0.6117
Working capital per thousand Ringgit sale	15.4%
Days to sell the inventory	19
Days to collect the receivables	380
Days to pay the payables	219

My notes based on 2011 quarter 1 report (number in '000):-
- Lower pbt was impacted by increase in finance charges due to higher borrowings from the acquisition of three chemical tankers for chartering business, coupled with lower contribution from associates with the completion of the patrol vessel project

- Estimate next 4Q eps after 2011 Q1 result announced = (0.0405+0.046)*2*1.1 = 0.1903, estimate PE on current price 4.07 = 21.05(DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.3098*1.2 = 0.3718, estimate highest/lowest PE = 11.57/10.46 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0636*1.1*4 = 0.2798 (10% increase due to many new contract received), estimate highest/lowest PE = 16.69/14.44 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0631*4 = 0.2524*0.9 = 0.2272 (10% drop from 0.2524), estimate highest/lowest PE = 21.13/15.58 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0749*4 = 0.2996, estimate highest/lowest PE = 15.75/12.65 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0996*4 = 0.3984, estimate highest/lowest PE = 12.66/11.16 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0709*4 = 0.2836, estimate highest/lowest PE = 18.67/16.24 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0616*4 = 0.2464, estimate highest/lowest PE = 19.99/12.68 (DPS 0.055)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0602*4 = 0.2408, estimate highest/lowest PE = 13.89/9.7 (DPS 0.055)

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