KLCI Stock - TGUAN / 7034 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	104,152,455 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(0.99-0.05)/0.2664 = 3.53 (Moderate)
Target Price	1.60+0.05 = 1.65 (PE 6.0, EPS 0.2664, DPS 0.05)
Decision	BUY if got strong buy volume above 0.99
Comment	Revenue increased 2.9% and also higher than preceding year corresponding quarter 15.4%, eps increased 20.9% and also higher than preceding year corresponding quarter 81.8%, no cash generated from operating after changes of working capital hence spent 9.4% of Group cash to cover other expenses, slightly weaker liquidity ratio at moderate level now, slightly higher gearing ratio at below moderate level now, all accounting ratio are good, all segments growth
First Support Price	0.99
Second Support Price	0.93
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	10.98%
Dividend Yield	5.05%
Profit Margin	6.48%
Tax Rate	7.59%
Asset Turnover	1.5889
Net Asset Value Per Share	2.2
Net Tangible Asset per share	2.2
Price/Net Tangible Asset Per Share	0.45
Cash Per Share	0.47
Liquidity Current Ratio	2.6062
Liquidity Quick Ratio	1.516
Liquidity Cash Ratio	0.6046
Gearing Debt to Equity Ratio	0.4051
Gearing Debt to Asset Ratio	0.2883
Working capital per thousand Ringgit sale	25.6%
Days to sell the inventory	66
Days to collect the receivables	51
Days to pay the payables	38

My notes based on 2011 quarter 2 report (number in '000):-
- The increase in revenue and pbt was mainly due to the increase in export volume of the group's products and better margin

- Estimate next 4Q eps after 2011 Q2 result announced = (0.0603+0.0729)*2 = 0.2664, estimate PE on current price 0.99 = 3.53(DPS 0.05)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.2129*1.05 = 0.2235, estimate highest/lowest PE = 5.86/3.85 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1935*1.1 = 0.2129, estimate highest/lowest PE = 4.93/4.23 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.045*4 = 0.18(profit margin around 4%), estimate highest/lowest PE = 5.67/4.89 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.04*4 = 0.16, estimate highest/lowest PE = 6.38/5.19(DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1351*1.1 = 0.1486 (10% increase), estimate highest/lowest PE = 7.81/4.98 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1351 (revenue growth but cost also increasing), estimate highest/lowest PE = 5.92/5.26 (DPS 0.04)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.134, estimate highest/lowest PE = 6.42/5.45 (DPS 0.02)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1138, estimate highest/lowest PE = 7.73/6.63 (DPS 0.02)

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