KLCI Stock - WCT / 9679 - 2011 Quarter 3

Company Info

Listing Date	1995-02-16
Market Capital (Capital Size)	1,731,131,418 (Large)
Par Value	RM 0.50
Board	Main
Sector	Construction
Major Industry	Civil Engineering
Sub Industry	Infrastructure Construction
Website	http://www.wct.com.my

My Analysis

Forecast P/E now	(2.15-0.1)/0.1852 = 11.07 (Moderate)
Target Price	2.96+0.1 = 3.06 (PE 16.0, EPS 0.1852, DPS 0.1)
Decision	BUY if stock price sustain and next uptrend start above 2.14
Comment	Revenue decreased 3.7% but higher than preceding year corresponding quarter 1.4%, eps increased 5.2% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 20.6%, cash generated from operating and financing not enough to cover financing expenses hence spent 12.4% of Group cash to cover, weaker liquidity ratio at low level now, lower gearing ratio but still at high level now, receivables and payables ratio slightly high, lower inventory can indicate construction works lesser
First Support Price	2.14
Second Support Price	1.9
Risk Rating	MODERATE

Research House

MIDF Target Price	3.5 (2011-05-30)
OSK Target Price	3.69 (2011-05-30)
AMMB Target Price	3.85 (2011-07-29)
HwangDBS Target Price	4.15 (2011-09-14)
UOB Target Price	2.37 (2011-09-23)
RHB Target Price	2.08 (2011-10-21)
CIMB Target Price	3.2 (2011-11-18)
HLG Target Price	2.98 (2011-11-21)
Maybank Target Price	2.75 (2011-11-21)

Accounting Ratio

Return on Equity	9.41%
Dividend Yield	4.65%
Profit Margin	14.64%
Tax Rate	22.69%
Asset Turnover	0.3408
Net Asset Value Per Share	1.69
Net Tangible Asset per share	1.69
Price/Net Tangible Asset Per Share	1.41
Cash Per Share	1.27
Liquidity Current Ratio	1.6936
Liquidity Quick Ratio	1.4971
Liquidity Cash Ratio	0.7875
Gearing Debt to Equity Ratio	1.8634
Gearing Debt to Asset Ratio	0.6079
Working capital per thousand Ringgit sale	63.5%
Days to sell the inventory	78
Days to collect the receivables	237
Days to pay the payables	260

My notes based on 2011 quarter 3 report (number in '000):-
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0463*4 = 0.1852, estimate PE on current price 2.15 = 11.07(DPS 0.1)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.044*4*1.02 = 0.1795, estimate highest/lowest PE = 15.65/9.75 (DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1699*0.95 = 0.1614, estimate highest/lowest PE = 19.44/14.99 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0809*2*1.05 = 0.1699(offset higher profit from property investment due to profit from this segment usually not maintaining), estimate highest/lowest PE = 17.95/16.01 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0809*2*1.05 = 0.1699, estimate highest/lowest PE = 20.78/16.24 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.1703*1.1 = 0.1873, estimate highest/lowest PE = 17.14/14.26 (DPS 0.1)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.0441*4*0.9 = 0.1588, estimate highest/lowest PE = 17.51/14.67 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.16, estimate highest/lowest PE = 18.88/15.13 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.16, estimate highest/lowest PE = 16.94/13.75 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0535*4 = 0.214, estimate highest/lowest PE = 12.85/11.07 (DPS 0.1)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.05*4 = 0.2, estimate highest/lowest PE = 13.83/8.48 (DPS 0.095, economy crisis)

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