KLCI Stock - SEB / 5163 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	36,000,000 (Very Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.45-0.01)/0.0496 = 8.87 (High)
Target Price	0.22+0.01 = 0.23 (PE 4.5, EPS 0.0496, DPS 0.01)
Decision	Not interested unless revenue and profit increase more
Comment	Revenue increased 13.3% and also higher than preceding year corresponding quarter 89%, eps largely increased 687.5% and also higher than preceding year corresponding quarter 17.8%, cash generated from operating and financing is more than enough to cover financing payments and still spent for purchase property, plant and equipment, weaker liquidity ratio at low level now, higher gearing ratio at moderate level now, all accounting ratio got slightly high
First Support Price	0.45
Second Support Price	0.42
Risk Rating	HIGH

Accounting Ratio

Return on Equity	6.66%
Dividend Yield	2.22%
Profit Margin	7.06%
Tax Rate	23.14%
Asset Turnover	0.7012
Net Asset Value Per Share	0.71
Net Tangible Asset per share	0.71
Price/Net Tangible Asset Per Share	0.63
Cash Per Share	0.21
Liquidity Current Ratio	1.8331
Liquidity Quick Ratio	1.3268
Liquidity Cash Ratio	0.4724
Gearing Debt to Equity Ratio	0.7449
Gearing Debt to Asset Ratio	0.4243
Working capital per thousand Ringgit sale	42.7%
Days to sell the inventory	102
Days to collect the receivables	160
Days to pay the payables	108

My notes based on 2011 quarter 2 report (number in '000):
- The Group showed a higher PBT for current year and current quarter as compared to preceding year and preceding year corresponding quarter was mainly due to higher sales

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0496, estimate PE on current price 0.45 = 8.87(DPS 0.01)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0496, estimate highest/lowest PE = 10.69/8.87 (DPS 0.01)
- Next quarter Q1 result maybe low, use year 2010 cum_eps to estimate next 4Q eps after 2010 Q4 result announced = 0.0431*1.15 = 0.0496(revenue, profit and receivables also largely increased), estimate highest/lowest PE = 12.9/9.98 (DPS 0.01)
- Revenue QbQ increasing more than 15%, use 10% profit margin, estimate next 4Q eps after 2010 Q3 result announced = (0.0168+0.0193)*2 = 0.0722, estimate highest/lowest PE = 9.63/8.1

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