KLCI Stock - DIALOG / 7277 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	4,793,634,216 (Large)
Par Value	RM 0.10

My Analysis

Forecast P/E now	(2.39-0.031)/0.1085 = 21.74 (High)
Target Price	1.95+0.031 = 1.98 (PE 18.0, EPS 0.1085, DPS 0.031)
Decision	Not interested unless stock price got strong uptrend above 2.46
Comment	Revenue decreased 5.2% but higher than preceding year corresponding quarter 34.7%, eps decreased 0.9% but higher than preceding year corresponding quarter 32.5%, no cash generated from operating after deducted payables payment but cash generated from financing activities more than enough to cover financing expenses, operating & investing expenses spent 23.4% of Group cash, stronger liquidity ratio but still at low level now, lower gearing ratio at moderate level now, all accounting ratio are good, going to benefit from Pengerang project
First Support Price	2.3
Second Support Price	2.14
Risk Rating	MODERATE

Research House

MIMB Target Price	2.15 (2010-12-27)
AMMB Target Price	3.04 (2011-07-15)
CIMB Target Price	3.48 (2011-08-22)
MIDF Target Price	2.94 (2011-09-08)
JP Morgan Target Price	3 (2011-10-07)
OSK Target Price	3.66 (2011-11-01)
Maybank Target Price	3.35 (2011-11-17)
RHB Target Price	3.51 (2011-11-17)

Accounting Ratio

Return on Equity	26.70%
Dividend Yield	1.30%
Profit Margin	15.03%
Tax Rate	18.61%
Asset Turnover	1.2001
Net Asset Value Per Share	0.32
Net Tangible Asset per share	0.3
Price/Net Tangible Asset Per Share	8.0
Cash Per Share	0.11
Liquidity Current Ratio	1.8954
Liquidity Quick Ratio	1.7778
Liquidity Cash Ratio	0.6793
Gearing Debt to Equity Ratio	0.6334
Gearing Debt to Asset Ratio	0.3736
Working capital per thousand Ringgit sale	21.8%
Days to sell the inventory	12
Days to collect the receivables	97
Days to pay the payables	84

My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue and pbt than FY11Q1 mainly due to the higher contribution from its newly acquired fabrication and multi-disciplined engineering company, Fitzroy Engineering Group Limited, based on New Zealand

- In addition, contribution from Asia operation increased significantly mainly due to higher revenue of Specialist Products & Services recorded in various countries such as Brunei, Oman, India, China and Indonesia

- Malaysia also registered higher revenue, mainly attributable to higher sales of Specialist Products & Services however revenue of Singapore operation was down by 35% caused by maintenance works

- Lower revenue and pbt than FY11Q4 mainly due to the new major E&C project, Pengerang Independent Deepwater Terminal is still at the early construction stage

- Estimate next 4Q eps after 2012 Q1 result announced = 0.1085, estimate PE on current price 2.39 = 21.74(DPS 0.031)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0226*4*1.2 = 0.1085, estimate highest/lowest PE = 25.43/16.21 (DPS 0.031)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0183+0.0193)*2*1.2 = 0.0902, estimate highest/lowest PE = 31.59/24.05 (DPS 0.031)
- Estimate next 4Q eps after 2011 Q2 result announced = (0.0183+0.0146)*2*1.05 = 0.0691, estimate highest/lowest PE = 38.77/30.38 (DPS 0.031)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0169*4*1.05 = 0.071(ROE 6% per quarter), estimate highest/lowest PE = 31.82/19.14 (DPS 0.031)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0146*4*1.05 = 0.0613, estimate highest/lowest PE = 23.8/16.95 (DPS 0.031)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0162*4*1.05 = 0.068(5% increase), estimate highest/lowest PE = 15.93/14.16 (DPS 0.037)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.04*2 = 0.08, estimate highest/lowest PE = 14.3/11.5 (DPS 0.036)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0193*4 = 0.0772, estimate highest/lowest PE = 18.83/15.73 (DPS 0.036)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.0659*1.1 = 0.0725, estimate highest/lowest PE = 18.4/15.64 (DPS 0.036)

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