KLCI Stock - IRCB / 2127 - 2012 Quarter 1

Company Info

Par Value

RM 0.20

My Analysis

Forecast P/E now	0.18/0.0066 = 27.27 (High)
Target Price	0.0066*6.0 = 0.04 (PE 6.0, EPS 0.0066)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 22.7% and also lower than preceding year corresponding quarter 39.1%, eps reduced 80.8% loss but compared to preceding year corresponding quarter still largely increased loss, no cash generated from operating, mainly depend on bank borrowing to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at above moderate level now, all accounting ratio are good, benefit from latex price decreasing, benefit from strengthening of USD against Ringgit
First Support Price	0.175
Second Support Price	0.16
Risk Rating	HIGH

Accounting Ratio

Return on Equity	-41.84%
Dividend Yield	-
Profit Margin	-23.40%
Tax Rate	-
Asset Turnover	0.638
Net Asset Value Per Share	0.22
Net Tangible Asset per share	0.22
Price/Net Tangible Asset Per Share	0.82
Cash Per Share	0.14
Liquidity Current Ratio	1.5523
Liquidity Quick Ratio	1.0814
Liquidity Cash Ratio	0.7667
Gearing Debt to Equity Ratio	0.9863
Gearing Debt to Asset Ratio	0.4965
Working capital per thousand Ringgit sale	35.2%
Days to sell the inventory	79
Days to collect the receivables	73
Days to pay the payables	32

My notes based on 2012 quarter 1 report (number in '000):-
- The decline in the Group's result were mainly due to record high latex prices that caused the sharp drop in sales of natural latex gloves and the continuous weakening of US Dollar which had significantly eroded the Group's profit margin

- No estimate next 4Q eps after 2012 Q1 result announced due to loss, if use eps from FY2010Q3 to FY2011Q2 = 0.0066, estimate PE on current price 0.18 = 27.27
- No estimate next 4Q eps after 2011 Q4 result announced due to loss, if use eps from FY2010Q3 to FY2011Q2 = 0.0066, estimate highest/lowest PE = 40.15/23.48
- No estimate next 4Q eps after 2011 Q3 result announced due to exclude other income will be a loss, if use eps from FY2010Q2 to FY2011Q1 = 0.0079, estimate highest/lowest PE = 32.28/2
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0021*2*1.05 = 0.0044(exclude gain from sale of land), estimate highest/lowest PE = 118.18/51.14
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0079(remain recent last 4Q cumulative eps), estimate highest/lowest PE = 102.53/48.73
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0022*4 = 0.0088, estimate highest/lowest PE = 128.41/67.61

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