KLCI Stock - LEADER / 4529 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	373,172,147 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(0.855-0.015)/0.1547 = 5.43 (Moderate)
Target Price	1.24+0.015 = 1.25 (PE 8.0, EPS 0.1547, DPS 0.015)
Decision	BUY
Comment	Revenue increased 44.3% and also higher than preceding year corresponding quarter 65.1%, eps increased 52.2% and also higher than preceding year corresponding quarter 22.5%, no cash generated from operating after deduct the expenses to increased assets but cash from borrowing is more than enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at high level now, all accounting periods are good, if the under construction power division back to operation then expect higher profit
First Support Price	0.82
Second Support Price	0.79
Risk Rating	MODERATE

Research House

OSK Target Price	1.2 (2011-05-23)
TA Target Price	1.2 (2011-05-25)

Accounting Ratio

Return on Equity	7.75%
Dividend Yield	-
Profit Margin	2.36%
Tax Rate	19.47%
Asset Turnover	1.663
Net Asset Value Per Share	1.33
Net Tangible Asset per share	1.33
Price/Net Tangible Asset Per Share	0.62
Cash Per Share	0.46
Liquidity Current Ratio	1.3748
Liquidity Quick Ratio	0.8713
Liquidity Cash Ratio	0.266
Gearing Debt to Equity Ratio	1.7681
Gearing Debt to Asset Ratio	0.5987
Working capital per thousand Ringgit sale	9.9%
Days to sell the inventory	50
Days to collect the receivables	56
Days to pay the payables	51

My notes based on 2011 quarter 1 report (number in '000):-
- The Cable and Wire division recorded a higher revenue mainly due to the increase in sales quantity and surge in metal prices in the current reporting quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.119*1.3 = 0.1547, estimate PE on current price 0.855 = 5.43(DPS 0.015)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0564*2*0.8 = 0.0902, estimate highest/lowest PE = 10.09/8.59 (DPS 0.015)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.034*4*0.9 = 0.1224, estimate highest/lowest PE = 7.52/6.41 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0575*2 = 0.115, estimate highest/lowest PE = 7.87/6.78 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1041, estimate highest/lowest PE = 8.5/7.4 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0261*4 = 0.1044, estimate highest/lowest PE = 9.77/7.71 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0363*4 = 0.1452, estimate highest/lowest PE = 6.44/4.92 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.032*4 = 0.128, estimate highest/lowest PE = 6.29/5.35 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0281*4 = 0.1124, estimate highest/lowest PE = 7.38/5.2 (DPS 0.03)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0289*4 = 0.1156, estimate highest/lowest PE = 5.97/3.16 (DPS 0.03)

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