KLCI Stock - HEXAGON / 7455 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	26,539,049 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.2/0.0213 = 9.39 (High)
Target Price	0.0213*4.0 = 0.09 (PE 4.0, EPS 0.0213)
Decision	Not interested unless stock price sustain above 0.24
Comment	Revenue increased 24.9% but lower than preceding year corresponding quarter 10.2%, eps reduced 94.7% loss but loss 445.8% compared to preceding year corresponding quarter, cash generated from operating not enough to cover financing expenses hence increased borrowings and spent 32% of Group cash to cover other expenses, better liquidity ratio from weak to low level now, slightly lower gearing ratio at very high level now, receivables and payables ratio are high, continuing affect by weakening of USD and Europe currencies
First Support Price	0.2
Second Support Price	0.18
Risk Rating	HIGH

Accounting Ratio

Return on Equity	-72.36%
Dividend Yield	-
Profit Margin	-2.72%
Tax Rate	-
Asset Turnover	0.7955
Net Asset Value Per Share	0.38
Net Tangible Asset per share	0.36
Price/Net Tangible Asset Per Share	0.62
Cash Per Share	0.31
Liquidity Current Ratio	1.0094
Liquidity Quick Ratio	0.825
Liquidity Cash Ratio	0.1398
Gearing Debt to Equity Ratio	6.5953
Gearing Debt to Asset Ratio	0.8262
Working capital per thousand Ringgit sale	0.9%
Days to sell the inventory	59
Days to collect the receivables	230
Days to pay the payables	104

My notes based on 2012 quarter 1 report (number in '000):-
- Lower revenue than FY11Q1 and loss primarily due to lower revenue from Engineering division as most of the major projects had been completed in previous financial year

- Better performance than FY11Q4 due to significant impairment of debts and provisions in relation to FRS139 and FRS111

- Estimate next 4Q eps after 2012 Q1 result announced = 70721*4*0.01/132695 = 0.0213(if can achieve 1% profit margin from revenue), estimate PE on current price 0.2 = 9.39
- Estimate next 4Q eps after 2011 Q4 result announced = 72198*0.025/132695 = 0.0136, estimate highest/lowest PE = 26.84/12.87
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0042*4*1.05 = 0.0176, estimate highest/lowest PE = 29.55/22.73
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0065*4 = 0.026, estimate highest/lowest PE = 23.65/16.15
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0059*4 = 0.0236, estimate highest/lowest PE = 25.42/17.8

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