KLCI Stock - A&M / 5959 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	153,326,796 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	0.42/0.0281 = 14.95 (High)
Target Price	0.0281*10.0 = 0.28 (PE 10.0, EPS 0.0281)
Decision	Not interested unless moving average back to uptrend
Comment	Revenue decreased 4.2% and also lower than preceding year corresponding quarter 24.7%, eps increased 161.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 245.6%, cash generated from operating is more than enough to cover all expenses, slightly weaker liquidity ratio at strong level now, slightly higher gearing ratio at below moderate level now, all accounting ratio also very high, more inventory but still lower sales
First Support Price	0.42
Second Support Price	0.39
Risk Rating	MODERATE

Accounting Ratio

Return on Equity	3.64%
Dividend Yield	-
Profit Margin	33.00%
Tax Rate	2.75%
Asset Turnover	0.1783
Net Asset Value Per Share	1.31
Net Tangible Asset per share	1.25
Price/Net Tangible Asset Per Share	0.39
Cash Per Share	0.2
Liquidity Current Ratio	4.61
Liquidity Quick Ratio	1.468
Liquidity Cash Ratio	0.8391
Gearing Debt to Equity Ratio	0.2861
Gearing Debt to Asset Ratio	0.2176
Working capital per thousand Ringgit sale	283.2%
Days to sell the inventory	1066
Days to collect the receivables	175
Days to pay the payables	301

My notes based on 2011 quarter 2 report (number in '000):
- The decrease in revenue was mainly attributable to the lower revenue being recognised by the Property and Construction Division following the completion of certain ongoing projects

- Higher pbt mainly due to to improved profit margin achieved by the Property and Construction Division and gain on sale of land of RM4.49 million

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0312*0.9 = 0.0281, estimate PE on current price 0.42 = 14.95
- Estimate next 4Q eps after 2011 Q1 result announced = (0.0066+0.009)*2 = 0.0312, estimate highest/lowest PE = 16.03/14.59
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0417*1.05 = 0.0438, estimate highest/lowest PE = 13.13/11.07
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0417*1.1 = 0.0459(0.0417 is recent 4Q cum_eps), estimate highest/lowest PE = 13.73/9.91
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0376*1.05 = 0.0395(5% increase from 0.0376), estimate highest/lowest PE = 15.32/12.41
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0376, estimate highest/lowest PE = 20.35/15.43
- Estimate 2009 eps after 2009 Q3 result announced = 0.0297+(0.041+0.0301)/2 = 0.0475, estimate highest/lowest PE = 17.79/11.05
- Estimate 2009 eps after 2009 Q2 result announced = 0.0518+(0.0089-0.0035) = 0.0572, estimate highest/lowest PE = 13.99/8.22
- Estimate 2009 eps after 2009 Q1 result announced = 0.0518+(0.0015-0.0007) = 0.0526, estimate highest/lowest PE = 17.02/7.41
- Estimate 2009 eps after 2008 Q4 result announced = 0.0518, estimate highest/lowest PE = 9.27/5.02

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