KLCI Stock - MUDAJYA / 5085 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	1,326,925,847 (Large)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(2.42-0.11)/0.3732 = 6.19 (Moderate)
Target Price	4.48+0.11 = 4.59 (PE 12.0, EPS 0.3732, DPS 0.11)
Decision	Not interested unless stock price sustain above 2.8
Comment	Revenue increased 59.6% and also higher than preceding year corresponding quarter 70.7%, eps increased 46.1% and also higher than preceding year corresponding quarter 11.6%, no cash generated from operating due to payables repayment hence spent 21.7% of Group cash to cover investing expenses, slightly weaker liquidity ratio at moderate level now, higher gearing ratio at below moderate level now, receivables and payables ratio got slightly high, all division business growth
First Support Price	2.4
Second Support Price	2.2
Risk Rating	MODERATE

Research House

OSK Target Price	5.48 (2011-07-14)
HLG Target Price	5.06 (2011-08-23)
CIMB Target Price	6.88 (2011-08-24)

Accounting Ratio

Return on Equity	25.74%
Dividend Yield	3.51%
Profit Margin	21.97%
Tax Rate	8.30%
Asset Turnover	0.9
Net Asset Value Per Share	1.95
Net Tangible Asset per share	1.95
Price/Net Tangible Asset Per Share	1.41
Cash Per Share	0.49
Liquidity Current Ratio	2.6652
Liquidity Quick Ratio	2.4023
Liquidity Cash Ratio	0.7688
Gearing Debt to Equity Ratio	0.3262
Gearing Debt to Asset Ratio	0.2338
Working capital per thousand Ringgit sale	43.2%
Days to sell the inventory	34
Days to collect the receivables	155
Days to pay the payables	122

My notes based on 2011 quarter 2 report (number in '000):-
- The growth in revenue of 29.3% was mainly attributable to the increased level of activities in the current quarter whilst the lower profit before taxation was affected by the stronger Ringgit Malaysia (RM) against US Dollar (USD)

- The delay in the Chhattisgarh power plant project experienced in the first quarter of 2011 has been resolved and work progress at site has picked up

- Estimate next 4Q eps after 2011 Q2 result announced = (0.1477+0.1011)*2*0.75 = 0.3732, estimate PE on current price 2.42 = 9.16(DPS 0.11)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.2407*2 = 0.4814, estimate highest/lowest PE = 9.74/6.54 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.5096*1.05 = 0.5351, estimate highest/lowest PE = 9/62/8.16 (DPS 0.045)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1137*0.9*4 = 0.4093, estimate highest/lowest PE = 13.18/9.05 (DPS 0.045)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1235*0.9*4 = 0.4446(based on preceding quarter eps to minus 10% adjustment due to revenue dropped 12%), estimate highest/lowest PE = 10.34/8.54 (DPS 0.045)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1235*4 = 0.494, estimate highest/lowest PE = 12.27/7.51 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1102*4 = 0.4408, estimate highest/lowest PE = 12.51/10.81 (DPS 0.036)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0948*4 = 0.3792, estimate highest/lowest PE = 13.76/10.68 (DPS 0.031)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0711*4 = 0.2844, estimate highest/lowest PE = 14.31/11.25 (DPS 0.031)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0377*4 = 0.1508, estimate highest/lowest PE = 24.6/9.08 (DPS 0.031)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.0278*4 = 0.1112, estimate highest/lowest PE = 13.98/9.58 (DPS 0.045)

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