KLCI Stock - TM / 4863 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	14,846,218,217 (Very Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(4.15-0.229)/0.1705 = 23.00 (High)
Target Price	3.07+0.229 = 3.30 (PE 18.0, EPS 0.1705, DPS 0.229)
Decision	Techinal BUY if stock price sustain above 4 and queue to sell volume above 4 not high but caution of next quarter eps most likely lower than FY10Q3
Comment	Revenue increased 4% and also higher than preceding year corresponding quarter 3.8%, eps decreased 22.1% and was third consecutive quarter decreasing but still higher than preceding year corresponding quarter 1.7%, cash generated from operating not enough for financing expenses hence increased borrowing and spent 23.7% of Group cash to cover other expenses, slightly lower liquidity ratio at low level now, higher gearing ratio at high level now, payables ratio is high, most division recorded lower profit
First Support Price	4.1
Second Support Price	3.8
Risk Rating	MODERATE

Research House

HwangDBS Target Price	3.35 (2011-02-28)
RHB Target Price	3.84 (2011-02-28)
TA Target Price	4.23 (2011-02-28)
MIDF Target Price	4.05 (2011-05-26)
Kenanga Target Price	4.39 (2011-06-09)
CIMB Target Price	4.92 (2011-07-27)
Maybank Target Price	4.4 (2011-07-27)
OSK Target Price	4.25 (2011-07-27)
AMMB Target Price	4 (2011-08-04)
ECM Target Price	3.7 (2011-08-25)
HLG Target Price	4.2 (2011-08-25)

Accounting Ratio

Return on Equity	15.11%
Dividend Yield	5.52%
Profit Margin	9.27%
Tax Rate	33.85%
Asset Turnover	0.4487
Net Asset Value Per Share	1.87
Net Tangible Asset per share	1.78
Price/Net Tangible Asset Per Share	2.35
Cash Per Share	1.0
Liquidity Current Ratio	1.6713
Liquidity Quick Ratio	1.6115
Liquidity Cash Ratio	0.9557
Gearing Debt to Equity Ratio	1.9501
Gearing Debt to Asset Ratio	0.6563
Working capital per thousand Ringgit sale	28.3%
Days to sell the inventory	13
Days to collect the receivables	96
Days to pay the payables	220

My notes based on 2011 quarter 2 report (number in '000):-
- Internet and multimedia services registered higher revenue arising from increased broadband and UniFi customers

- Data revenue increased by 7.1% arising from demand for higher bandwidth services

- Higher pbt due to higher revenue and other operating income and lower net finance cost

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0812*2*1.05 = 0.1705, estimate PE on current price 4.15 = 23(DPS 0.229)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0457*4*1.05 = 0.1919, estimate highest/lowest PE = 20.42/18.18 (DPS 0.261)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0543*4 = 0.2172(exclude one time income and use average foreign exchange gain), estimate highest/lowest PE = 17.17/14.09 (DPS 0.26)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0504*4*0.95 = 0.1814, estimate highest/lowest PE = 18.3/16.81 (DPS 0.26)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0606(average of recent 4Q eps)*4 = 0.2424, estimate highest/lowest PE = 13.9/12.46 (DPS 0.23)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0479*4 = 0.1916, estimate highest/lowest PE = 17.38/14.87 (DPS 0.23)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0505*4 = 0.202, estimate highest/lowest PE = 15.54/13.71(DPS 0.22)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.2, estimate highest/lowest PE = 15.45/13.85 (DPS 0.22)

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