KLCI Stock - MAHSING / 8583 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	1,879,345,576 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.26-0.076)/0.2016 = 10.83 (Moderate)
Target Price	2.42+0.076 = 2.50 (PE 12.0, EPS 0.2016, DPS 0.076)
Decision	Not interested unless 100d moving average back to uptrend
Comment	Revenue increased 33.5% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 44%, eps increased 3.9% and was fourth consecutive quarter increasing and also higher than preceding year corresponding quarter 42%, no cash generated from operating but cash generate from financing still more than enough to cover all expenses, stronger liquidity ratio at moderate level now, higher gearing ratio at high level now, inventory and payables increasing to very high level, all segment recorded higher revenue
First Support Price	2.15
Second Support Price	2.0
Risk Rating	MODERATE

Research House

Nomura Target Price	3.08 (2011-02-10)
RHB Target Price	3.15 (2011-04-15)
TA Target Price	3.32 (2011-04-15)
CIMB Target Price	3.3 (2011-07-18)
Maybank Target Price	3.16 (2011-08-03)
UOB Target Price	2.44 (2011-08-03)
HLG Target Price	2.87 (2011-08-18)
Kenanga Target Price	2.87 (2011-08-18)
MIDF Target Price	2.9 (2011-08-18)
OSK Target Price	3.01 (2011-08-18)

Accounting Ratio

Return on Equity	15.13%
Dividend Yield	3.36%
Profit Margin	14.90%
Tax Rate	31.16%
Asset Turnover	0.4575
Net Asset Value Per Share	1.14
Net Tangible Asset per share	1.14
Price/Net Tangible Asset Per Share	2.15
Cash Per Share	0.94
Liquidity Current Ratio	2.6821
Liquidity Quick Ratio	1.1095
Liquidity Cash Ratio	0.8011
Gearing Debt to Equity Ratio	1.9182
Gearing Debt to Asset Ratio	0.6532
Working capital per thousand Ringgit sale	128.7%
Days to sell the inventory	549
Days to collect the receivables	84
Days to pay the payables	265

My notes based on 2011 quarter 2 report (number in '000):-
- Revenue and profit for the quarter is attributable to property development activities carried out in Kuala Lumpur, Klang Valley, Penang Island and Johor Bahru. Ongoing projects that contributed to revenue and profit include Garden Residence in Cyberjaya, Kinrara Residence in Puchong, Perdana Residence 2 in Selayang, M-Suites in Jalan Ampang, One Legenda and Hijauan Residence in Cheras, Kemuning Residence in Shah Alam and Aman Perdana in Meru - Shah Alam. Also contributing are commercial projects such as Southgate Commercial Centre in Sungai Besi, StarParc Point in Setapak and industrial projects, i-Parc 1 and i-Parc 3 in Bukit Jelutong as well as i-Parc 2 in Shah Alam. Projects in Penang Island, Residence @ Southbay and Legenda @ Southbay and in Johor Bahru, Sierra Perdana , Sri Pulai Perdana 2 and Austin Perdana also contributed to revenue and profit. The Plastics division continued to contribute positively to the Group's performance

- The better performance is mainly attributable to higher profit contribution from property development activities

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0504*4 = 0.2016, estimate PE on current price 2.26 = 10.83(DPS 0.076)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0485*4 = 0.194, estimate highest/lowest PE = 13.47/10.64 (DPS 0.076)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0376*4*1.1 = 0.1654, estimate highest/lowest PE = 16.05/13.2 (DPS 0.076)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0357*4*1.1 = 0.1571, estimate highest/lowest PE = 17.6/10.85 (DPS 0.065)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0355*4*1.1 = 0.1562, estimate highest/lowest PE = 12.45/10.47 (DPS 0.065)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034*4*1.1 = 0.1496, estimate highest/lowest PE = 12.13/9.99 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0388*4 = 0.1552, estimate highest/lowest PE = 12.6/10.53 (DPS 0.065)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0373*4 = 0.1492, estimate highest/lowest PE = 12.73/10.72 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0366*4 = 0.1464, estimate highest/lowest PE = 13.66/11.61 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.036*4 = 0.144, estimate highest/lowest PE = 13.68/11.39 (DPS 0.08)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0271*4 = 0.1084, estimate highest/lowest PE = 16.33/13.28 (DPS 0.08)

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