KLCI Stock - PWROOT / 7237 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	172,500,000 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(0.575-0.04)/0.0427 = 12.53 (High)
Target Price	0.30+0.04 = 0.34 (PE 7.0, EPS 0.0427, DPS 0.04)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 13.9% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 1.4%, eps increased 89.3% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 4.6%, cash generated from operating enough to cover all expenses, weaker liquidity ratio but still at high level now, higher gearing ratio at below moderate level now, all accounting ratio are slightly high
First Support Price	0.55
Second Support Price	0.52
Risk Rating	HIGH

Research House

JF Apex Target Price

0.61 (2011-01-26)

Accounting Ratio

Return on Equity	6.61%
Dividend Yield	13.91%
Profit Margin	11.83%
Tax Rate	19.90%
Asset Turnover	0.8038
Net Asset Value Per Share	0.62
Net Tangible Asset per share	0.6
Price/Net Tangible Asset Per Share	0.95
Cash Per Share	0.1
Liquidity Current Ratio	3.6787
Liquidity Quick Ratio	2.9658
Liquidity Cash Ratio	0.8048
Gearing Debt to Equity Ratio	0.2323
Gearing Debt to Asset Ratio	0.1885
Working capital per thousand Ringgit sale	56.4%
Days to sell the inventory	114
Days to collect the receivables	154
Days to pay the payables	137

My notes based on 2012 quarter 1 report (number in '000):-
- The increase of revenue and profit mainly attributable to the increase in the sales from the Group's Fast Moving Consumer Goods business

- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate PE on current price 0.575 = 12.53(DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 13.47/11.83 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

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