KLCI Stock - DRBHCOM / 1619 - 2012 Quarter 2

Company Info 

Market Capital (Capital Size)	4,059,797,807 (Large)
Par Value	RM 1.00

My Analysis 

Forecast P/E now	(2.1-0.04)/0.1422 = 14.49 (High)
Target Price	1.99+0.04 = 2.03 (PE 14.0, EPS 0.1422, DPS 0.04)
Decision	Not interested unless stock price maintain above near to SMA20 and upper bolinger band is open or below SMA20 and strong sustain above 2
Comment	Revenue decreased 20.8% but higher than preceding year corresponding quarter 1.9%, eps increased 25.9% but lower than preceding year corresponding quarter 42.3%, no cash generated from operating after deducted liabilities expenses hence increased borrowing and spent 20.7% of Group cash to cover other expenses, weaker liquidity ratio at weak level now, all division revenue dropped compared to FY12Q1, lower inventory can indicate lower demand of Group products
First Support Price	2.0
Second Support Price	1.9
Risk Rating	MODERATE

Research House

HwangDBS Target Price	3.45 (2011-11-09)
RHB Target Price	1.9 (2011-11-25)
HLG Target Price	2.9 (2012-01-07)

Accounting Ratio 

Return on Equity	6.11%
Dividend Yield	1.90%
Profit Margin	11.11%
Tax Rate	26.04%
Asset Turnover	0.2567
Net Asset Value Per Share	2.64
Net Tangible Asset per share	2.53
Price/Net Tangible Asset Per Share	0.82
Cash Per Share	3.61
Liquidity Current Ratio	0.6423
Liquidity Quick Ratio	0.5096
Liquidity Cash Ratio	0.414
Gearing Debt to Equity Ratio	3.8545
Gearing Debt to Asset Ratio	0.7582
Working capital per thousand Ringgit sale	-90.5%
Days to sell the inventory	127
Days to collect the receivables	86
Days to pay the payables	843

Technical Analysis 

SMA 20	2.062 (Uptrend 3 days)
SMA 50	2.082 (Same)
SMA 100	2.015 (Uptrend)
SMA 200	2.111 (Same)
MACD	0.015831 (Uptrend 8 days)
MACD Histogram	0.004917 (Uptrend 3 days)

My notes based on 2012 quarter 2 report (number in '000):-
- Lower revenue mainly due to lower sales recorded by companies in the Automotive sector

- In FY11Q2, the Group had recognised a oneoff exceptional item i.e. negative goodwill of RM71.22 million arising from accretion of equity interest in EON Bhd. Excluding this exceptional item, the current financial period’s operating profits has dropped by RM28.06 million. The reduction was mainly attributable to lower share of results of associated companies

- Higher pbt than FY12Q1 is mainly contributed by higher share of results of jointly controlled entities and recognition of share of results of POS Malaysia Berhad

- Estimate next 4Q eps after 2012 Q2 result announced = (0.0471+0.0319)*2*0.9 = 0.1422(exclude RM80 million other income and revenue drop), estimate PE on current price 2.1 = 14.49(DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = (0.0471+0.0374)*2*0.9 = 0.1521, estimate highest/lowest PE = 14/10.59 (DPS 0.06)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.057+0.0374)*2*1.05 = 0.1982, estimate highest/lowest PE = 11.58/9.56 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.057*4*0.8 = 0.1824, estimate highest/lowest PE = 13.46/9.02 (DPS 0.045)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0684*4*0.8 = 0.2189, estimate highest/lowest PE = 10.19/5.57 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1873*0.95 = 0.1779, estimate highest/lowest PE = 7.59/5.79 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0493*4*0.95 = 0.1873, estimate highest/lowest PE = 6.09/5.02 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0428*4 = 0.1712, estimate highest/lowest PE = 7.42/5.37 (DPS 0.04)

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