KLCI Stock - JOBST / 0058 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	776,726,130 (Medium)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(2.41-0.065)/0.1412 = 16.61 (Moderate)
Target Price	2.54+0.065 = 2.61 (PE 18.0, EPS 0.1412, DPS 0.065)
Decision	Not interested unless stock price sustain above 2.48
Comment	Revenue decreased 0.5% but higher than preceding year corresponding quarter 18.4%, eps decreased 13.9% and was second consecutive quarter decreasing but still higher than preceding year corresponding quarter 18.9%, 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, higher payables, except Singapore, others segment business were growth, lower receivables can indicate revenue slow down
First Support Price	2.4
Second Support Price	2.2
Risk Rating	MODERATE

Research House

OSK Target Price	2.32 (2011-05-19)
CIMB Target Price	3.77 (2011-07-18)
HwangDBS Target Price	2.3 (2011-10-04)

Accounting Ratio

Return on Equity	25.84%
Dividend Yield	2.59%
Profit Margin	43.99%
Tax Rate	22.82%
Asset Turnover	0.5746
Net Asset Value Per Share	0.57
Net Tangible Asset per share	0.57
Price/Net Tangible Asset Per Share	4.39
Cash Per Share	0.28
Liquidity Current Ratio	2.4147
Liquidity Quick Ratio	2.4147
Liquidity Cash Ratio	2.0624
Gearing Debt to Equity Ratio	0.2393
Gearing Debt to Asset Ratio	0.1903
Working capital per thousand Ringgit sale	46.6%
Days to sell the inventory	-
Days to collect the receivables	42
Days to pay the payables	184

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue and profit than FY10Q3 mainly due to higher sales reflecting higher recruitment activities and lower tax rate

- Lower pbt than FY11Q2 mainly due to fair value of the Group’s investments in quoted securities decreased by RM1.2 million which negatively impacted profitability

- Estimate next 4Q eps after 2010 Q3 result announced = 0.0353*4 = 0.1412, estimate PE on current price 2.41 = 16.61(DPS 0.06)
- Estimate next 4Q eps after 2010 Q2 result announced = (0.0349+0.041)*2 = 0.1518, estimate highest/lowest PE = 18.05/14.76 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1441, estimate highest/lowest PE = 20.33/17.63 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 19.85/16.59 (DPS 0.06)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.51/18.42 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0343*4*1.05 = 0.1441, estimate highest/lowest PE = 20.78/13.98 (DPS 0.055)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0991 (5% grow from 0.0944), estimate highest/lowest PE = 20.66/18.54 (DPS 0.0425)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0895 (around 5% grow from 0.085), estimate highest/lowest PE = 23.8/16.54 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0892, estimate highest/lowest PE = 17.49/15.02 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.084, estimate highest/lowest PE = 16.49/13.63 (DPS 0.035)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0899, estimate highest/lowest PE = 14.07/11.4 (DPS 0.035)

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