KLCI Stock - BHIC / 8133 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	745,372,842 (Medium)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(3.0-0.065)/0.162 = 18.12 (High)
Target Price	1.94+0.065 = 2.01 (PE 12.0, EPS 0.162, DPS 0.065)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 3.5% and also higher than preceding year corresponding quarter 15.6%, eps decreased 86.2% and was third consecutive quarter decreasing and also lower than preceding year corresponding quarter 91.2%, no cash generated from operating however cash from financing still more than enough to cover all expenses, better liquidity ratio but still at low level now, lower gearing ratio but still at high level now, receivables & payables ratio still very high
First Support Price	3.0
Second Support Price	2.8
Risk Rating	HIGH

Research House

AMMB Target Price	5.2 (2011-08-15)
HwangDBS Target Price	5.15 (2011-08-15)

Accounting Ratio

Return on Equity	10.71%
Dividend Yield	2.17%
Profit Margin	2.27%
Tax Rate	-
Asset Turnover	0.5725
Net Asset Value Per Share	1.71
Net Tangible Asset per share	1.7
Price/Net Tangible Asset Per Share	1.92
Cash Per Share	0.43
Liquidity Current Ratio	1.1984
Liquidity Quick Ratio	1.1494
Liquidity Cash Ratio	0.1591
Gearing Debt to Equity Ratio	1.7271
Gearing Debt to Asset Ratio	0.6061
Working capital per thousand Ringgit sale	19.4%
Days to sell the inventory	20
Days to collect the receivables	353
Days to pay the payables	203

My notes based on 2011 quarter 2 report (number in '000):-
- The decline of pbt was partly attributed to cost overruns in completing certain commercial shipbuilding projects, increase in finance charges due to higher borrowings arising from the acquisition of three chemical tankers for chartering business and lower contribution from associates with the completion of the patrol vessel project

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0405*4 = 0.162, estimate PE on current price 3 = 18.12(DPS 0.065)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.0405+0.046)*2*1.1 = 0.1903, estimate highest/lowest PE = 21.97/16.5 (DPS 0.065)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.3098*1.2 = 0.3718, estimate highest/lowest PE = 11.57/10.46 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0636*1.1*4 = 0.2798 (10% increase due to many new contract received), estimate highest/lowest PE = 16.69/14.44 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0631*4 = 0.2524*0.9 = 0.2272 (10% drop from 0.2524), estimate highest/lowest PE = 21.13/15.58 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0749*4 = 0.2996, estimate highest/lowest PE = 15.75/12.65 (DPS 0.06)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0996*4 = 0.3984, estimate highest/lowest PE = 12.66/11.16 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0709*4 = 0.2836, estimate highest/lowest PE = 18.67/16.24 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0616*4 = 0.2464, estimate highest/lowest PE = 19.99/12.68 (DPS 0.055)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0602*4 = 0.2408, estimate highest/lowest PE = 13.89/9.7 (DPS 0.055)

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