KLCI Stock - LPI / 8621 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	2,868,358,780 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(12.96-0.7)/0.6948 = 17.65 (Moderate)
Target Price	12.51+0.7 = 13.21 (PE 18.0, EPS 0.6948, DPS 0.7)
Decision	BUY if stock price next uptrend start above 12
Comment	Revenue increased 10.5% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 21.5%, eps increased 43.6% and also higher than preceding year corresponding quarter 21.5%, cash generated from operating not enough to cover financing expenses hence spent 8.1% of Group cash to cover, stronger liquidity ratio at very strong level now, higher gearing ratio at high level now, general insurance revenue and profit increasing
First Support Price	12.6
Second Support Price	11.7
Risk Rating	MODERATE

Research House

OSK Target Price

13.6 (2011-10-07)

Accounting Ratio

Return on Equity	13.89%
Dividend Yield	5.40%
Profit Margin	23.67%
Tax Rate	19.36%
Asset Turnover	0.3597
Net Asset Value Per Share	4.88
Net Tangible Asset per share	4.88
Price/Net Tangible Asset Per Share	2.41
Cash Per Share	2.51
Liquidity Current Ratio	5.5131
Liquidity Quick Ratio	3.6531
Liquidity Cash Ratio	2.2488
Gearing Debt to Equity Ratio	1.2097
Gearing Debt to Asset Ratio	0.5474
Working capital per thousand Ringgit sale	129.7%
Days to sell the inventory	329
Days to collect the receivables	136
Days to pay the payables	77

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue and pbt than FY10Q3 mainly due to higher gross premium underwritten and higher underwriting profit corresponding

- Higher pbt than FY11Q2 mainly due to higher investment income received

- Estimate next 4Q eps after 2010 Q3 result announced = (0.2048+0.1426)*2 = 0.6948, estimate PE on current price 12.96 = 17.65(DPS 0.7)
- Estimate next 4Q eps after 2010 Q2 result announced = (0.1754+0.1426)*2*1.05 = 0.6678, estimate highest/lowest PE = 20.22/16.05 (DPS 0.7)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1754*4*1.1 = 0.7718, estimate highest/lowest PE = 17.19/16.65 (DPS 0.55)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.6383*1.1 = 0.7021, estimate highest/lowest PE = 19.27/17.73 (DPS 0.55)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.1685*4*1.05 = 0.7077, estimate highest/lowest PE = 19.57/15.42 (DPS 0.37)
- Estimate next 4Q eps after 2010 Q2 result announced = 1.0303(10% grow from 0.9366), estimate highest/lowest PE = 17.46/15.5 (DPS 0.5125)
- Estimate next 4Q eps after 2010 Q1 result announced = 1.0303(10% grow from 0.9366), estimate highest/lowest PE = 15.15/12.76 (DPS 0.675)
- Estimate next 4Q eps after 2009 Q4 result announced = 1.0533(15% grow from 0.9159), estimate highest/lowest PE = 12.94/11.53 (DPS 0.675)
- Estimate next 4Q eps after 2009 Q3 result announced = 1.0253, estimate highest/lowest PE = 13.23/11.16 (DPS 0.74)
- Estimate next 4Q eps after 2009 Q2 result announced = 1.0204, estimate highest/lowest PE = 11.43/10.25 (DPS 0.74)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.979, estimate highest/lowest PE = 10.88/8.63 (DPS 0.85)

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