KLCI Stock - IRCB / 2127 - 2012 Quarter 2

Company Info

Par Value	RM 0.20
Board	Main

My Analysis

Forecast P/E now	0.18/0.0066 = 27.27 (High)
Target Price	0.0066*6.0 = 0.04 (PE 6.0, EPS 0.0066)
Decision	Not interested unless stock price next uptrend above 0.16
Comment	Revenue increased 45.4% and also higher than preceding year corresponding quarter 8.9%, eps increased 13% loss and largely turned into loss compared to preceding year corresponding quarter, no cash generated from operating and cash from bank borrowing also not enough to cover all expenses hence spent 20% of Group cash to cover, slightly weaker liquidity ratio at low level now, higher gearing ratio from above moderate to high level now, all accounting ratio are good, lower inventory can indicate slow down in sales, benefit from latex price decreasing, benefit from strengthening of USD against Ringgit
First Support Price	0.145
Second Support Price	0.125
Risk Rating	HIGH

Accounting Ratio

Return on Equity	-49.91%
Dividend Yield	-
Profit Margin	-18.27%
Tax Rate	-
Asset Turnover	0.6557
Net Asset Value Per Share	0.15
Net Tangible Asset per share	0.15
Price/Net Tangible Asset Per Share	0.83
Cash Per Share	0.09
Liquidity Current Ratio	1.4388
Liquidity Quick Ratio	1.036
Liquidity Cash Ratio	0.6585
Gearing Debt to Equity Ratio	1.1258
Gearing Debt to Asset Ratio	0.5296
Working capital per thousand Ringgit sale	28.8%
Days to sell the inventory	68
Days to collect the receivables	90
Days to pay the payables	30

My notes based on 2012 quarter 2 report (number in '000):-
- Higher loss before tax mainly due to the high latex prices and weakening of the USD. In addition, the provision for doubtful debts of RM1.42 million and stocks write down of RM0.58 million which were non-recurring in nature had cause further deterioration of the Group's result

- No estimate next 4Q eps after 2012 Q2 result announced due to loss, if use eps from FY2010Q3 to FY2011Q2 = 0.0066, estimate PE on current price 0.18 = 27.27
- No estimate next 4Q eps after 2012 Q1 result announced due to loss, if use eps from FY2010Q3 to FY2011Q2 = 0.0066, estimate highest/lowest PE = 27.27/17.42
- No estimate next 4Q eps after 2011 Q4 result announced due to loss, if use eps from FY2010Q3 to FY2011Q2 = 0.0066, estimate highest/lowest PE = 40.15/23.48
- No estimate next 4Q eps after 2011 Q3 result announced due to exclude other income will be a loss, if use eps from FY2010Q2 to FY2011Q1 = 0.0079, estimate highest/lowest PE = 32.28/2
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0021*2*1.05 = 0.0044(exclude gain from sale of land), estimate highest/lowest PE = 118.18/51.14
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0079(remain recent last 4Q cumulative eps), estimate highest/lowest PE = 102.53/48.73
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0022*4 = 0.0088, estimate highest/lowest PE = 128.41/67.61

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