KLCI Stock - MUHIBAH / 5703 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	716,514,177 (Medium)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(1.79-0.035)/0.1394 = 12.59 (High)
Target Price	1.39+0.035 = 1.43 (PE 10.0, EPS 0.1394, DPS 0.035)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 5.2% and also lower than preceding year corresponding quarter 4%, eps increased 93.8% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 234.4%, no cash generate from operating after deduct liabilities expenses however cash generated from financing is more than enough to cover the rest of expenses, stronger liquidity ratio but still at low level now, lower gearing ratio but still at very high ratio now, receivables and payables ratio still very higher, better profit margin
First Support Price	1.65
Second Support Price	1.45
Risk Rating	HIGH

Research House

CIMB Target Price

2.53 (2011-01-27)

Accounting Ratio

Return on Equity	9.03%
Dividend Yield	1.96%
Profit Margin	6.36%
Tax Rate	22.41%
Asset Turnover	0.6142
Net Asset Value Per Share	1.14
Net Tangible Asset per share	1.1
Price/Net Tangible Asset Per Share	1.5
Cash Per Share	0.58
Liquidity Current Ratio	1.0634
Liquidity Quick Ratio	0.9576
Liquidity Cash Ratio	0.146
Gearing Debt to Equity Ratio	4.1541
Gearing Debt to Asset Ratio	0.7724
Working capital per thousand Ringgit sale	6.7%
Days to sell the inventory	42
Days to collect the receivables	301
Days to pay the payables	290

My notes based on 2011 quarter 1 report (number in '000):-
- Higher pbt mainly due to better results from all divisions

- As at 19 May 2011, the total outstanding secured order book in hand of the Group is RM2.86 billion, comprises of RM2.0 billion from Infrastructure Construction Division, RM496 million from Cranes Division and RM358 million from Shipyard Division

- Estimate next 4Q eps after 2010 Q1 result announced = (0.0438+0.0226)*2*1.05 = 0.1394, estimate PE on current price 1.79 = 12.59 (DPS 0.035)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0843*1.1 = 0.0927, estimate highest/lowest PE = 18.93/13.65 (DPS 0.035)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0481*2 = 0.0962(although revenue decrease but offset by high tax rate), estimate highest/lowest PE = 20.06/12.79
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0266*4 = 0.1064, estimate highest/lowest PE = 9.35/7.99
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0135*4 = 0.054, estimate highest/lowest PE = 18.43/15.74
- No estimate for 2009 Q4 result
- No estimate for 2009 Q3 result
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0362*4 = 0.1448, estimate highest/lowest PE = 9.29/6.94 (DPS 0.025)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.039*4 = 0.156, estimate highest/lowest PE = 8.17/4.04 (DPS 0.025)

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