KLCI Stock - TDM / 2054 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	689,077,870 (Medium)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.92-0.17)/0.4702 = 5.85 (Moderate)
Target Price	4.70+0.17 = 4.87 (PE 10.0, EPS 0.4702, DPS 0.17)
Decision	Watching, buy when sell volume is lower
Comment	Revenue increased 20% and also higher than preceding year corresponding quarter 49%, eps increased 7.6% and also higher than preceding year corresponding quarter 136.7%, cash generated from operating enough to cover financing expenses but investing expenses used up 8.8% of Group cash, weaker liquidity ratio at low level now, higher gearing ratio at below moderate level now, payables ratio still slightly high, expect higher production from July to December, cpo price decreasing
First Support Price	2.7
Second Support Price	2.5
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	16.69%
Dividend Yield	5.65%
Profit Margin	34.73%
Tax Rate	26.66%
Asset Turnover	0.4889
Net Asset Value Per Share	3.15
Net Tangible Asset per share	3.12
Price/Net Tangible Asset Per Share	0.91
Cash Per Share	0.7
Liquidity Current Ratio	1.4838
Liquidity Quick Ratio	1.3559
Liquidity Cash Ratio	0.9672
Gearing Debt to Equity Ratio	0.2935
Gearing Debt to Asset Ratio	0.2225
Working capital per thousand Ringgit sale	17.3%
Days to sell the inventory	26
Days to collect the receivables	50
Days to pay the payables	188

My notes based on 2011 quarter 2 report (number in '000):-
- Higher pbt than FY11Q1 due to higher CPO production by 26%

- Higher pbt in plantation division than FY10Q2 due to higher CPO & PK price and production

- Higher revenue and pbt in healthcare division than FY10Q2 due to increased of 18% in number of patient and additional RM2 million from new hospital TDMC

- Higher revenue and pbt in food division than FY10Q2 due to higher average prices of livebird and increase in number of livebird sold

- Estimate next 4Q eps after 2011 Q2 result announced = (0.1258+0.1354)*2*0.9 = 0.4702, estimate PE on current price 2.92 = 5.85(DPS 0.17)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1258*0.85*4 = 0.4277, estimate highest/lowest PE = 7.13/5.96 (DPS 0.17)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.4184*0.9 = 0.3766, estimate highest/lowest PE = 8.03/6.63 (DPS 0.135)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.4, estimate highest/lowest PE = 8.23/5.75 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0933*4 = 0.3732(0.0933 is average of eps in FY10Q1 and FY09Q4), estimate highest/lowest PE = 6.54/4.82 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0889*4 = 0.3556, estimate highest/lowest PE = 6.52/4.16 (DPS 0.13)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2503*1.2 = 0.3004, estimate highest/lowest PE = 6.23/5.13 (DPS 0.13)
- Estimate next 4Q eps after 2009 Q3 result announced = (0.0923+0.0418+0.019)/3*4*1.2 = 0.245, estimate highest/lowest PE = 6.37/5.51 (DPS 0.14)

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