KLCI Stock - WCT / 9679 - 2011 Quarter 1

Company Info

Market Capital (Capital Size)	2,499,459,966 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(3.13-0.1)/0.1614 = 18.77 (High)
Target Price	2.58+0.1 = 2.68 (PE 16.0, EPS 0.1614, DPS 0.1)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue decreased 27.9% and also lower than preceding year corresponding quarter 21.1%, eps decreased 17.1% and also lower than preceding year corresponding quarter 1.4%, cash generated from operating enough to cover all expenses and still got cash generated from investing and financing, weaker liquidity ratio at low level now, lower gearing ratio but still at very high level now, receivables and payables ratio at very high ratio but offset by working capital also increased 4 times, high material cost may impact property development and civil engineering & construction segments, new warrants which is going to dilute the earning per share
First Support Price	3.0
Second Support Price	2.8
Risk Rating	MODERATE

Research House

HLG Target Price	3.85 (2011-03-01)
HwangDBS Target Price	4.15 (2011-04-11)
Maybank Target Price	3.75 (2011-05-10)
MIDF Target Price	3.5 (2011-05-30)
OSK Target Price	3.69 (2011-05-30)

Accounting Ratio

Return on Equity	9.46%
Dividend Yield	3.19%
Profit Margin	15.70%
Tax Rate	22.72%
Asset Turnover	0.3428
Net Asset Value Per Share	1.57
Net Tangible Asset per share	1.57
Price/Net Tangible Asset Per Share	1.94
Cash Per Share	1.45
Liquidity Current Ratio	1.6333
Liquidity Quick Ratio	1.4667
Liquidity Cash Ratio	0.7334
Gearing Debt to Equity Ratio	2.3123
Gearing Debt to Asset Ratio	0.6581
Working capital per thousand Ringgit sale	66.3%
Days to sell the inventory	74
Days to collect the receivables	280
Days to pay the payables	303

My notes based on 2011 quarter 1 report (number in '000):-
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1699*0.95 = 0.1614, estimate PE on current price 3.13 = 17.83(DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0809*2*1.05 = 0.1699(offset higher profit from property investment due to profit from this segment usually not maintaining), estimate highest/lowest PE = 17.95/16.01 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0809*2*1.05 = 0.1699, estimate highest/lowest PE = 20.78/16.24 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1703*1.1 = 0.1873, estimate highest/lowest PE = 17.14/14.26 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0441*4*0.9 = 0.1588, estimate highest/lowest PE = 17.51/14.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 18.88/15.13 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 16.94/13.75 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0535*4 = 0.214, estimate highest/lowest PE = 12.85/11.07 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.05*4 = 0.2, estimate highest/lowest PE = 13.83/8.48 (DPS 0.095, economy crisis)

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