KLCI Stock - HARTA / 5168 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	2,009,293,248 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(5.52-0.18)/0.5052 = 10.57 (Moderate)
Target Price	6.06+0.18 = 6.24 (PE 12.0, EPS 0.5052, DPS 0.18)
Decision	Not interested unless stock price sustain and next uptrend start above 5.35
Comment	Revenue increased 4.6% and is continuing increasing all the time(higher than preceding year corresponding quarter 24.5%), eps decreased 15.9% and also lower than preceding year corresponding quarter 2.3%, cash generated from operating is more than enough to cover all expenses, slightly weaker liquidity ratio at high level now, slightly higher gearing ratio at below moderate level now, all accounting ratio are good, benefit from strengthening of USD dollar against Ringgit, affect by increase in Nitrile material price
First Support Price	5.35
Second Support Price	5.0
Risk Rating	MODERATE

Research House

OSK Target Price	7.4 (2011-05-11)
Kenanga Target Price	6.83 (2011-05-16)
HwangDBS Target Price	6.9 (2011-06-16)
CIMB Target Price	7.18 (2011-07-07)
RHB Target Price	6.06 (2011-09-09)
MIDF Target Price	6.36 (2011-09-13)
Maybank Target Price	6.8 (2011-11-08)
Affin Target Price	7.33 (2011-11-09)

Accounting Ratio

Return on Equity	39.49%
Dividend Yield	3.26%
Profit Margin	25.94%
Tax Rate	22.47%
Asset Turnover	1.1622
Net Asset Value Per Share	1.52
Net Tangible Asset per share	1.52
Price/Net Tangible Asset Per Share	3.59
Cash Per Share	0.4
Liquidity Current Ratio	3.4296
Liquidity Quick Ratio	2.3123
Liquidity Cash Ratio	1.4123
Gearing Debt to Equity Ratio	0.2848
Gearing Debt to Asset Ratio	0.2215
Working capital per thousand Ringgit sale	30.0%
Days to sell the inventory	73
Days to collect the receivables	41
Days to pay the payables	42

My notes based on 2012 quarter 2 report (number in '000):
- Lower pbt mainly due to increase in raw material prices of both natural and nitrile latex prices and recognition of net unrealised loss in foreign exchange and changes in fair value in forward foreign exchange contracts of RM8,658,000 in the current quarter compared with a net unrealised gain of RM1,586,000 in the corresponding quarter

- Estimate next 4Q eps after 2012 Q2 result announced = 0.1263*4 = 0.5052, estimate PE on current price 5.52 = 10.57(DPS 0.18)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1501*4 = 0.6004, estimate highest/lowest PE = 9.31/8.69 (DPS 0.15)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.1438*4*1.05 = 0.604, estimate highest/lowest PE = 9.4/8.05 (DPS 0.14)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.1351*4*1.1 = 0.5944, estimate highest/lowest PE = 9.99/8.77 (DPS 0.14)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1293*4*1.1 = 0.5689, estimate highest/lowest PE = 9.86/8.28 (DPS 0.14)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.1708*4*1.05 = 0.7174, estimate highest/lowest PE = 11.15/8.24 (DPS 0.15)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1915*4 = 0.766, estimate highest/lowest PE = 10.91/9.43 (DPS 0.19)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1535*4 = 0.614, estimate highest/lowest PE = 13.65/10.78 (DPS 0.15)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1366*4 = 0.5464, estimate highest/lowest PE = 13.95/9.9 (DPS 0.15)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1088*4 = 0.4352, estimate highest/lowest PE = 12.59/10.78 (DPS 0.15)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.512, estimate highest/lowest PE = 10.55/6.01 (DPS 0.12)

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