KLCI Stock - WCT / 9679 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	2,065,934,057 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.57-0.1)/0.1795 = 13.76 (Moderate)
Target Price	2.87+0.1 = 2.97 (PE 16.0, EPS 0.1795, DPS 0.1)
Decision	Not interested unless stock price sustain above 2.6
Comment	Revenue increased 19.1% but lower than preceding year corresponding quarter 26.8%, eps increased 1.1% and also higher than preceding year corresponding quarter 3.5%, cash generated from operating and financing not enough to cover all expenses hence spent 3.6% Group cash to cover, stronger liquidity ratio but still at low level now, lower gearing ratio but still at high level now, receivables and payables ratio at very high ratio
First Support Price	2.5
Second Support Price	2.3
Risk Rating	MODERATE

Research House

HwangDBS Target Price	4.15 (2011-04-11)
MIDF Target Price	3.5 (2011-05-30)
OSK Target Price	3.69 (2011-05-30)
CIMB Target Price	4.15 (2011-07-05)
AMMB Target Price	3.85 (2011-07-29)
Maybank Target Price	3.75 (2011-07-29)
HLG Target Price	3.85 (2011-08-17)

Accounting Ratio

Return on Equity	9.36%
Dividend Yield	3.89%
Profit Margin	13.51%
Tax Rate	22.62%
Asset Turnover	0.336
Net Asset Value Per Share	1.62
Net Tangible Asset per share	1.62
Price/Net Tangible Asset Per Share	1.77
Cash Per Share	1.33
Liquidity Current Ratio	1.8387
Liquidity Quick Ratio	1.6199
Liquidity Cash Ratio	0.8703
Gearing Debt to Equity Ratio	1.9884
Gearing Debt to Asset Ratio	0.6242
Working capital per thousand Ringgit sale	74.0%
Days to sell the inventory	84
Days to collect the receivables	241
Days to pay the payables	294

My notes based on 2011 quarter 1 report (number in '000):-
- The improved earnings was mainly due to higher contribution by the Civil Engineering & Construction Division

- Estimate next 4Q eps after 2011 Q2 result announced = 0.044*4*1.02 = 0.1795, estimate PE on current price 2.57 = 13.76(DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1699*0.95 = 0.1614, estimate highest/lowest PE = 19.44/14.99 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0809*2*1.05 = 0.1699(offset higher profit from property investment due to profit from this segment usually not maintaining), estimate highest/lowest PE = 17.95/16.01 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0809*2*1.05 = 0.1699, estimate highest/lowest PE = 20.78/16.24 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1703*1.1 = 0.1873, estimate highest/lowest PE = 17.14/14.26 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0441*4*0.9 = 0.1588, estimate highest/lowest PE = 17.51/14.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 18.88/15.13 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 16.94/13.75 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0535*4 = 0.214, estimate highest/lowest PE = 12.85/11.07 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.05*4 = 0.2, estimate highest/lowest PE = 13.83/8.48 (DPS 0.095, economy crisis)

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