KLCI Stock - DAYA / 0091 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	191,865,367 (Small)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(0.16-0.0024)/0.0164 = 9.61 (High)
Target Price	0.13+0.0024 = 0.13 (PE 8.0, EPS 0.0164, DPS 0.0024)
Decision	Not interested unless stock price sustain above 0.18
Comment	Revenue increased 8.9% and is second consecutive quarter increasing and also higher than preceding year corresponding quarter 43%, eps decreased 51% and also lower than preceding year corresponding quarter 14.3%, no cash generate from operating due to increased current assets however cash generated from financing activities enough to cover all expenses, weaker liquidity ratio at low level now, higher gearing ratio at moderate level now, slightly high receivables but offset by higher working capital, lower profit margin
First Support Price	0.16
Second Support Price	0.145
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	9.24%
Dividend Yield	1.50%
Profit Margin	9.66%
Tax Rate	29.26%
Asset Turnover	0.633
Net Asset Value Per Share	0.18
Net Tangible Asset per share	0.11
Price/Net Tangible Asset Per Share	1.64
Cash Per Share	0.04
Liquidity Current Ratio	1.9736
Liquidity Quick Ratio	1.8035
Liquidity Cash Ratio	0.6045
Gearing Debt to Equity Ratio	0.6322
Gearing Debt to Asset Ratio	0.3866
Working capital per thousand Ringgit sale	36.6%
Days to sell the inventory	26
Days to collect the receivables	141
Days to pay the payables	89

My notes based on 2011 quarter 2 report (number in '000):-
- The higher revenue was mainly due to the increase in revenue from oil & gas and technical services segments

- The improved performance was mainly attributable to the profit contributed by oil & gas segment with the acquisition of Daya OCI Sdn Bhd but offset with lower profits from polymer segment due to the weaker market condition in the polymer industry and technical services segments due to the nature of lower margin in the technical services industry

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0041*4 = 0.0164, estimate PE on current price 0.16 = 9.61(DPS 0.0024)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0216*0.9 = 0.0194, estimate highest/lowest PE = 11.99/8.12 (DPS 0.0024)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0049*4*1.1 = 0.0216, estimate highest/lowest PE = 12.16/9.61 (DPS 0.0024)

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