KLCI Stock - MBMR / 5983 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	779,281,001 (Medium)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(3.21-0.13)/0.571 = 5.39 (Moderate)
Target Price	4.57+0.13 = 4.70 (PE 8.0, EPS 0.571, DPS 0.13)
Decision	BUY
Comment	Revenue increased 5.1% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 12.6%, eps increased 35.5% but lower than preceding year corresponding quarter 3.9%, no cash generate from operating after deduct increased assets expenses and also no cash generate from financing, lower liquidity ratio at moderate level now, higher gearing ratio at below moderate level, all accounting periods are good, since April USD and JPY currency also rebound which mind impact the Group, increasing branches for the dealerships
First Support Price	2.95
Second Support Price	2.75
Risk Rating	MODERATE

Research House

HwangDBS Target Price	4.15 (2011-01-10)
Maybank Target Price	5 (2011-01-24)
MIDF Target Price	3.2 (2011-05-25)
Affin Target Price	3.45 (2011-06-03)
OSK Target Price	3.8 (2011-06-08)
RHB Target Price	3.75 (2011-06-08)

Accounting Ratio

Return on Equity	12.17%
Dividend Yield	4.05%
Profit Margin	11.32%
Tax Rate	7.41%
Asset Turnover	1.135
Net Asset Value Per Share	4.22
Net Tangible Asset per share	4.17
Price/Net Tangible Asset Per Share	0.71
Cash Per Share	0.62
Liquidity Current Ratio	2.865
Liquidity Quick Ratio	1.726
Liquidity Cash Ratio	0.7935
Gearing Debt to Equity Ratio	0.2085
Gearing Debt to Asset Ratio	0.1541
Working capital per thousand Ringgit sale	22.6%
Days to sell the inventory	53
Days to collect the receivables	39
Days to pay the payables	42

My notes based on 2011 quarter 1 report (number in '000):-
- Total industry volume growth remained positive, growing by 4.3% over the preceding quarter and by 7.5% compared with the same period last year

- The gradual phase out of the Daihatsu Delta trucks are reflected in the decline in Daihatsu (Malaysia)'s truck sales, compared against last year, was partly compensated by the new Hino dealership sales

- The acquisition of Lion Motor Sdn Bhd was completed during the quarter

- Estimate next 4Q eps after 2011 Q1 result announced = 0.571, estimate PE on current price 3.21 = 5.39(DPS 0.13)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1154*4*0.9 = 0.4154, estimate highest/lowest PE = 7.73/6.76 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1399*4*0.9 = 0.5036, estimate highest/lowest PE = 6.77/5.7 (DPS 0.08)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.5049*0.9 = 0.4544, estimate highest/lowest PE = 7.22/6.45 (DPS 0.08)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.4772 (base on year 2008 eps), estimate highest/lowest PE = 6.71/5.53 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0931*4 = 0.3724, estimate highest/lowest PE = 8.4/6.69 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0916*4 = 0.3664, estimate highest/lowest PE = 7.21/6.39 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0568*4 = 0.2272, estimate highest/lowest PE = 10.65/8.98 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0381*4 = 0.1524, estimate highest/lowest PE = 14.37/12.6 (DPS 0.18)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0672*4 = 0.2688, estimate highest/lowest PE = 8.59/6.58 (DPS 0.18)

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