KLCI Stock - HAIO / 7668 - 2012 Quarter 2

Company Info 

Market Capital (Capital Size)	452,906,231 (Small)
Par Value	RM 0.50

My Analysis 

Forecast P/E now	(2.24-0.06)/0.1734 = 12.57 (Moderate)
Target Price	2.25+0.06 = 2.31 (PE 13.0, EPS 0.1734, DPS 0.06)
Decision	Not interested unless stock price strong support above 2.15
Comment	Revenue increased 10.3% and also higher than preceding year corresponding quarter 6.8%, eps increased 1.8% and also higher than preceding year corresponding quarter 28.3%, cash generated from operating and disposal enough to cover all expenses, stronger liquidity ratio at strong level now, lower gearing ratio at below moderate level now, all accounting ratio are good, lower inventory can indicate products demand not much different or lower, main profit contributor MLM growth
First Support Price	2.15
Second Support Price	1.88
Risk Rating	MODERATE

Research House

RHB Target Price	1.35 (2011-03-24)
Affin Target Price	1.27 (2011-09-29)
OSK Target Price	1.7 (2011-12-22)

Accounting Ratio 

Return on Equity	13.96%
Dividend Yield	3.35%
Profit Margin	20.02%
Tax Rate	25.28%
Asset Turnover	0.8156
Net Asset Value Per Share	1.1
Net Tangible Asset per share	1.09
Price/Net Tangible Asset Per Share	1.65
Cash Per Share	0.49
Liquidity Current Ratio	4.5592
Liquidity Quick Ratio	3.4036
Liquidity Cash Ratio	2.7384
Gearing Debt to Equity Ratio	0.207
Gearing Debt to Asset Ratio	0.1658
Working capital per thousand Ringgit sale	57.3%
Days to sell the inventory	82
Days to collect the receivables	39
Days to pay the payables	48

Technical Analysis 

SMA 20	2.257 (Uptrend 33 days)
SMA 50	2.025 (Uptrend)
SMA 100	1.894 (Uptrend)
SMA 200	1.96 (Same)
MACD	0.120439 (Downtrend 4 days)
MACD Histogram	0.011962 (Uptrend 33 days)

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to successful MLM members’ sales campaign

- Estimate next 4Q eps after 2012 Q2 result announced = 0.0394*4*1.1 = 0.1734, estimate PE on current price 2.24 = 12.57(DPS 0.075)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0387*4*1.05 = 0.1625, estimate highest/lowest PE = 11.72/9.38 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q4 result announced = (0.0428+0.0318)*2*1.05 = 0.1567, estimate highest/lowest PE = 13.37/9.41 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0318*4*1.05 = 0.1336, estimate highest/lowest PE = 17.33/14.93 (DPS 0.075)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0307*4*0.95 = 0.1167, estimate highest/lowest PE = 23.91/18.25 (DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0391*4 = 0.1564, estimate highest/lowest PE = 20.01/17.46 (DPS 0.12)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0714*4 = 0.2856*1.1(10% QbQ improvement adjustment) = 0.3142, estimate highest/lowest PE = 12.16/8.78 (DPS 0.2)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.3729, estimate highest/lowest PE = 12.42/9.17 (DPS 0.18)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2424*4 = 0.9696, estimate highest/lowest PE = 10.78/7.44(DPS 0.42)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.2217*4 = 0.8868, estimate highest/lowest PE = 8.54/6.33 (DPS 0.42)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1778*4 = 0.7112, estimate highest/lowest PE = 7.44/5.76 (DPS 0.4)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1463*4 = 0.5852, estimate highest/lowest PE = 6.9/5.06 (DPS 0.4)

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