KLCI Stock - GTRONIC / 7022 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	242,152,153 (Small)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(0.905-0.045)/0.1218 = 7.06 (Moderate)
Target Price	1.10+0.045 = 1.14 (PE 9.0, EPS 0.1218, DPS 0.045)
Decision	BUY for dividend
Comment	Revenue increased 2.1% and was second consecutive quarter increasing but still lower than preceding year corresponding quarter 7.4%, eps increased 2.8% and was second consecutive quarter increasing but still lower than preceding year corresponding quarter 11%, cash generated from operating is more than enough to cover all expenses, stronger liquidity ratio at moderate level now, lower gearing ratio at below moderate level now, all accounting ratio are good, lower inventory can indicate slow down of sales
First Support Price	0.9
Second Support Price	0.87
Risk Rating	MODERATE

Research House

MIDF Target Price

1.4 (2011-04-27)

Accounting Ratio

Return on Equity	11.68%
Dividend Yield	9.39%
Profit Margin	12.20%
Tax Rate	10.39%
Asset Turnover	0.9022
Net Asset Value Per Share	0.95
Net Tangible Asset per share	0.95
Price/Net Tangible Asset Per Share	0.95
Cash Per Share	0.35
Liquidity Current Ratio	2.9818
Liquidity Quick Ratio	2.7583
Liquidity Cash Ratio	1.8158
Gearing Debt to Equity Ratio	0.2217
Gearing Debt to Asset Ratio	0.1815
Working capital per thousand Ringgit sale	35.9%
Days to sell the inventory	17
Days to collect the receivables	62
Days to pay the payables	60

My notes based on 2011 quarter 3 report (number in '000):-
- Lower pbt than FY10Q3 mainly caused by the increase in electricity tariff rate and end of life for certain matured products

- The increase in turnover and net profit than FY11Q2 is mainly due to improved volume loadings from some of the Group’s key customers

- Estimate next 4Q eps after 2011 Q3 result announced = 0.029*4*1.05 = 0.1218, estimate PE on current price 0.905 = 7.06(DPS 0.045)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0282*3*1.05+0.0241*1.05 = 0.1141, estimate highest/lowest PE = 8.46/6.88 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1139*1.1 = 0.1253, estimate highest/lowest PE = 7.53/7.05 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0326*4 = 0.1304(no decrease due to high tax expenses), estimate highest/lowest PE = 8.46/6.85 (DPS 0.0965)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0326*4 = 0.1304, estimate highest/lowest PE = 8.97/7.67 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.026*4 = 0.104(0.026 is average of latest recent quarter), estimate highest/lowest PE = 13.94/8.94 (DPS 0.09)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0904+0.0007+(0.0911*0.05) = 0.0957(adjustment from 0.0233-0.0226 and 5% grow adjustment), estimate highest/lowest PE = 16.61/12.85 (DPS 0.08)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0226*4 = 0.0904, estimate highest/lowest PE = 18.36/9.07 (DPS 0.07)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0183*4 = 0.0732, estimate highest/lowest PE = 15.64/8.74 (DPS 0.055)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0137*4 = 0.0548, estimate highest/lowest PE = 15.78/13.05 (DPS 0.025)

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