KLCI Stock - INGRESS / 7112 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	60,672,000 (Very Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	0.79/0.0958 = 8.25 (High)
Target Price	0.0958*5.0 = 0.48 (PE 5.0, EPS 0.0958)
Decision	Not interested unless stock price sustain above 0.81
Comment	Revenue increased 1.7% but lower than preceding year corresponding quarter 8.9%, eps decreased 46% but higher than preceding year corresponding quarter 51.6%, cash generated from operating after deduct operating expenses not enough to cover financing expenses hence generated cash from borrowing but also not enough to cover all expenses, weaker liquidity ratio at low level now, slightly lower gearing ratio at very high level now, all accounting ratio are good, revenue and profit of automotive division keep decreasing, power and engineering projects remaining loss, inventory increasing which may indicate revenue going to increase
First Support Price	0.77
Second Support Price	0.75
Risk Rating	HIGH

Accounting Ratio

Return on Equity	6.37%
Dividend Yield	-
Profit Margin	3.01%
Tax Rate	11.71%
Asset Turnover	1.2474
Net Asset Value Per Share	2.19
Net Tangible Asset per share	2.14
Price/Net Tangible Asset Per Share	0.36
Cash Per Share	0.84
Liquidity Current Ratio	1.1654
Liquidity Quick Ratio	0.9231
Liquidity Cash Ratio	0.2709
Gearing Debt to Equity Ratio	2.1045
Gearing Debt to Asset Ratio	0.5973
Working capital per thousand Ringgit sale	5.3%
Days to sell the inventory	30
Days to collect the receivables	76
Days to pay the payables	54

My notes based on 2012 quarter 2 report (number in '000):-
- Higher pat than FY11Q2 mainly due to lower minority interest(MI) in current quarter

- Lower pbt than FY12Q1 mainly due to the impact of the March 2011 earthquake and tsunami in Japan especially to the Thailand's automotive industry

- Estimate next 4Q eps after 2012 Q2 result announced = 0.0228*4*1.05 = 0.0958(if deduct additional RM2 million MI), estimate PE on current price 0.79 = 8.25
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1151*1.05 = 0.1209(exclude RM4.7 million other income), estimate highest/lowest PE = 8.6/5.75
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0274*4*1.05 = 0.1151, estimate highest/lowest PE = 7.86/6.47
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0272*4*1.05 = 0.1142, estimate highest/lowest PE = 7.36/5.95
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1288*1.05 = 0.1352, estimate highest/lowest PE = 6.62/5.18
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0322*4 = 0.1288(0.0322 is eps after exclude 8 million from other income), estimate highest/lowest PE = 7.41/4.81
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0346*4 = 0.1384, estimate highest/lowest PE = 4.99/3.76
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0357*4 = 0.1428, estimate highest/lowest PE = 5.67/4.1
- Estimate next 4Q eps after 2010 Q2 result announced = 0.023*4 = 0.092, estimate highest/lowest PE = 9.24/3.53

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