KLCI Stock - WASEONG / 5142 - 2011 Quarter 3

Company Info

Market Capital (Capital Size)	1,559,898,786 (Large)
Par Value	RM 0.50

My Analysis

Forecast P/E now	(2.07-0.055)/0.1232 = 16.36 (High)
Target Price	1.72+0.055 = 1.78 (PE 14.0, EPS 0.1232, DPS 0.055)
Decision	Not interested unless stock price got strong buy volume above 2.06
Comment	Revenue increased 18.2% and also higher than preceding year corresponding quarter 38.1%, eps decreased 17.2% and was second consecutive quarter decreasing but higher than preceding year corresponding quarter 70.7%, cash generated from operating more than enough to cover all expenses and still got borrowings, stronger liquidity ratio but still at low level now, higher gearing ratio at high level now, all accounting ratio are good, high inventory can indicate works amount still good trend
First Support Price	2.0
Second Support Price	1.9
Risk Rating	MODERATE

Research House

MIDF Target Price	2.35 (2011-04-19)
CIMB Target Price	2.7 (2011-04-28)
OSK Target Price	3.5 (2011-05-06)
AMMB Target Price	2.85 (2011-07-04)
Kenanga Target Price	3.04 (2011-07-04)
Maybank Target Price	3.1 (2011-07-04)
MIDF Target Price	2.73 (2011-09-15)
HwangDBS Target Price	3.1 (2011-09-21)
ECM Target Price	2.48 (2011-11-16)
RHB Target Price	1.49 (2011-11-24)

Accounting Ratio

Return on Equity	10.80%
Dividend Yield	2.66%
Profit Margin	7.66%
Tax Rate	19.45%
Asset Turnover	0.8041
Net Asset Value Per Share	1.3
Net Tangible Asset per share	1.15
Price/Net Tangible Asset Per Share	1.78
Cash Per Share	0.68
Liquidity Current Ratio	1.9926
Liquidity Quick Ratio	1.6289
Liquidity Cash Ratio	0.7258
Gearing Debt to Equity Ratio	1.14
Gearing Debt to Asset Ratio	0.5103
Working capital per thousand Ringgit sale	39.8%
Days to sell the inventory	59
Days to collect the receivables	128
Days to pay the payables	69

My notes based on 2011 quarter 3 report (number in '000):-
- Higher revenue due to better performance in all divisions of the Group

- Higher pbt than FY10Q3 mainly due to a higher contribution from the Oil & Gas division

- Estimate next 4Q eps after 2011 Q3 result announced = 0.028*4*1.1 = 0.1232, estimate PE on current price 2.07 = 16.36(DPS 0.055)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0338*4*1.05 = 0.142, estimate highest/lowest PE = 15.11/12.85 (DPS 0.055)
- Estimate next 4Q eps after 2011 Q1 result announced = (0.0563+0.032)*2 = 0.1766, estimate highest/lowest PE = 13.59/10.76 (DPS 0.05)

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