KLCI Stock - PWROOT / 7237 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	159,000,000 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(0.53-0.04)/0.034 = 14.41 (High)
Target Price	0.24+0.04 = 0.28 (PE 7.0, EPS 0.034, DPS 0.04)
Decision	BUY for dividend
Comment	Revenue increased 4.2% and was third consecutive quarter increasing and also higher than preceding year corresponding quarter 5.4%, eps decreased 46.5% and also lower than preceding year corresponding quarter 36.1%, cash generated from operating after deducted increase assets expenses not enough to cover financing expenses hence spent 15% of Group cash to cover other expenses, slightly weaker liquidity ratio at high level now, slightly higher gearing ratio at below moderate level now, higher inventory can indicate stronger demand of sales
First Support Price	0.5
Second Support Price	0.47
Risk Rating	MODERATE

Research House

JF Apex Target Price

0.61 (2011-01-26)

Accounting Ratio

Return on Equity	6.02%
Dividend Yield	7.55%
Profit Margin	4.53%
Tax Rate	-
Asset Turnover	0.8225
Net Asset Value Per Share	0.6
Net Tangible Asset per share	0.59
Price/Net Tangible Asset Per Share	0.87
Cash Per Share	0.09
Liquidity Current Ratio	3.4262
Liquidity Quick Ratio	2.6488
Liquidity Cash Ratio	0.6455
Gearing Debt to Equity Ratio	0.2458
Gearing Debt to Asset Ratio	0.1973
Working capital per thousand Ringgit sale	52.9%
Days to sell the inventory	127
Days to collect the receivables	147
Days to pay the payables	135

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue mainly attributable to the increase in export sales from the Group's Fast Moving Consumer Goods business

- Lower pbt mainly due to the increase in raw material costs and higher marketing expenses

- Estimate next 4Q eps after 2012 Q2 result announced = 0.0085*4 = 0.034, estimate PE on current price 0.53 = 14.41(DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 12.76/10.19 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 13.47/11.83 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

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