KLCI Stock - ANNJOO / 6556 - 2011 Quarter 2

Company Info

Market Capital (Capital Size)	1,102,914,255 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(2.11-0.1034)/0.1526 = 13.15 (High)
Target Price	1.83+0.1034 = 1.93 (PE 12.0, EPS 0.1526, DPS 0.1034)
Decision	Not interested unless stock price next uptrend start above 2
Comment	Revenue decreased 0.4% and also lower than preceding year corresponding quarter 6.8%, eps decreased 20.8 and also lower than preceding year corresponding quarter 51.1%, cash generated from operating more than enough for financing expenses and still got borrowings to cover investing expenses, stronger liquidity ratio but still at low level now, higher gearing ratio at high level now, lower inventory can translate into sales slow down
First Support Price	2.0
Second Support Price	1.8
Risk Rating	MODERATE

Research House

Maybank Target Price	3.3 (2011-02-09)
RHB Target Price	3.02 (2011-02-22)
OSK Target Price	2.89 (2011-02-25)
CIMB Target Price	3.74 (2011-05-27)
HLG Target Price	3.11 (2011-05-27)
MIDF Target Price	2.8 (2011-05-27)
Affin Target Price	2.7 (2011-09-20)

Accounting Ratio

Return on Equity	8.88%
Dividend Yield	4.90%
Profit Margin	7.71%
Tax Rate	14.51%
Asset Turnover	0.6558
Net Asset Value Per Share	1.45
Net Tangible Asset per share	1.44
Price/Net Tangible Asset Per Share	1.74
Cash Per Share	0.18
Liquidity Current Ratio	1.4558
Liquidity Quick Ratio	0.4012
Liquidity Cash Ratio	0.1191
Gearing Debt to Equity Ratio	1.572
Gearing Debt to Asset Ratio	0.6104
Working capital per thousand Ringgit sale	28.7%
Days to sell the inventory	256
Days to collect the receivables	65
Days to pay the payables	34

My notes based on 2011 quarter 1 report (number in '000):-
- Lower revenue mainly attributable to lower export tonnages as a result of disruption in demand growth momentum in the international market on the back of political unrest in Middle East and North Africa region in addition to the earthquake and tsunami disaster in Japan

- Lower pbt mainly due to depressed international steel prices while recognising higher input costs

- Estimate next 4Q eps after 2011 Q2 result announced = 0.0477*4*0.8 = 0.1526, estimate PE on current price 2.11 = 13.15(DPS 0.1234)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.04+0.0602)*2 = 0.2004, estimate highest/lowest PE = 14.3/10.96 (DPS 0.1234)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04*4 = 0.16, estimate highest/lowest PE = 19.31/16.69 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0517*4 = 0.2068(0.0517 is average eps of Q110,Q409,Q308, due to steel price decreasing), estimate highest/lowest PE = 15.91/11.9 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0591*4 = 0.2364, estimate highest/lowest PE = 12.39/9.31 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.048*4 = 0.192, estimate highest/lowest PE = 15.68/13.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0682*4 = 0.2728, estimate highest/lowest PE = 12.17/8.69 (DPS 0.03)

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