KLCI Stock - KGB / 0151 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	65,661,300 (Very Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.83-0.03)/0.12 = 6.67 (High)
Target Price	0.72+0.03 = 0.75 (PE 6.0, EPS 0.12, DPS 0.03)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 89.2% and also higher than preceding year corresponding quarter 135.9%, eps increased 330.3% and also higher than preceding year corresponding quarter 33.5%, cash generated from operating enough to cover financing activities and still got private placement cash to cover investing activities, stronger liquidity ratio at moderate level now, lower gearing ratio at above moderate level now, receivables and payables ratio also slightly high
First Support Price	0.79
Second Support Price	0.76
Risk Rating	HIGH

Accounting Ratio

Return on Equity	22.70%
Dividend Yield	3.61%
Profit Margin	9.78%
Tax Rate	6.18%
Asset Turnover	1.3667
Net Asset Value Per Share	0.6
Net Tangible Asset per share	0.6
Price/Net Tangible Asset Per Share	1.38
Cash Per Share	0.31
Liquidity Current Ratio	2.2323
Liquidity Quick Ratio	2.1859
Liquidity Cash Ratio	0.7542
Gearing Debt to Equity Ratio	0.7253
Gearing Debt to Asset Ratio	0.4204
Working capital per thousand Ringgit sale	36.3%
Days to sell the inventory	5
Days to collect the receivables	154
Days to pay the payables	100

My notes based on 2011 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to the higher revenue contribution from all 4 countries i.e Malaysia, Singapore, China and Taiwan as well as a new project in Vietnam

- Estimate next 4Q eps after 2011 Q2 result announced = 0.12, estimate PE on current price 0.83 = 6.67(DPS 0.03)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.12, after private issues eps = 0.108, highest/lowest PE = 7.59/6.94 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.12, estimate highest/lowest PE = 7.5/5.17, after private issues eps = 0.108, highest/lowest PE = 8.33/5.74 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.095, estimate highest/lowest PE = 7.16/6.42 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.095, estimate highest/lowest PE = 8.63/7.05 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate highest/lowest PE = 9.6/6.6 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate PE on current price 0.77 = 7.4(DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1, estimate highest/lowest PE = 7.7/6.65 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1, estimate highest/lowest PE = 9/5.8

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