KLCI Stock - HUAAN / 2739 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	359,138,501 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.32-0.00178)/0.0070 = 45.46 (High)
Target Price	0.06+0.00178 = 0.06 (PE 8.0, EPS 0.0070, DPS 0.00178)
Decision	Not interested unless raw material costs decrease
Comment	Revenue increased 3.9% and is third consecutive quarter increasing and also higher than preceding year corresponding quarter 1.6%, eps decreased 70.4% but recovered from loss over preceding year corresponding quarter, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio at below moderate level now, all accounting periods are good, continuing affect by increased raw material costs
First Support Price	0.32
Second Support Price	0.315
Risk Rating	HIGH

Research House

OSK Target Price

0.32 (2011-05-20)

Accounting Ratio

Return on Equity	1.40%
Dividend Yield	0.56%
Profit Margin	0.23%
Tax Rate	-
Asset Turnover	1.7119
Net Asset Value Per Share	0.61
Net Tangible Asset per share	0.52
Price/Net Tangible Asset Per Share	0.65
Cash Per Share	0.03
Liquidity Current Ratio	2.0594
Liquidity Quick Ratio	1.2997
Liquidity Cash Ratio	0.2581
Gearing Debt to Equity Ratio	0.2016
Gearing Debt to Asset Ratio	0.1678
Working capital per thousand Ringgit sale	10.4%
Days to sell the inventory	27
Days to collect the receivables	34
Days to pay the payables	36

My notes based on 2011 quarter 1 report (number in '000):-
- Higher revenue primarily attributed to the favourable upward trend experienced in the pricing of the metallurgical coke and an increase in sales volume

- Lower pbt mainly due to increase in the average price of raw material(i.e. coking coal)

- Estimate next 4Q eps after 2011 Q1 result announced = 0.0035*2 = 0.007, estimate PE on current price 0.32 = 45.46(DPS 0.00178)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0027*4*1.05 = 0.0113, estimate highest/lowest PE = 35.24/27.72 (DPS 0.00178)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0052*2 = 0.0104, estimate highest/lowest PE = 39.42/31.73

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