KLCI Stock - PWROOT / 7237 - 2012 Quarter 3

Company Info

Market Capital (Capital Size)	154,500,000 (Small)
Par Value	RM 0.20

My Analysis

Forecast P/E now	(0.515-0.04)/0.0496 = 9.58 (Moderate)
Target Price	0.50+0.04 = 0.54 (PE 10.0, EPS 0.0496, DPS 0.04)
Decision	BUY for dividend
Comment	Revenue increased 5.9% and was fourth consecutive quarter increasing(higher than preceding year corresponding quarter 43.6%), eps increased 81.2% and also higher than preceding year corresponding quarter 305.3%, cash generated from operating more than enough to cover all expenses, lower liquidity ratio but still at high level now, higher gearing ratio at below moderate level now, higher inventory can indicate stronger demand of Group products
First Support Price	0.505
Second Support Price	0.48
Risk Rating	MODERATE

Research House

JF Apex Target Price

0.61 (2011-01-26)

Accounting Ratio

Return on Equity	7.82%
Dividend Yield	7.77%
Profit Margin	10.88%
Tax Rate	23.71%
Asset Turnover	0.8514
Net Asset Value Per Share	0.62
Net Tangible Asset per share	0.6
Price/Net Tangible Asset Per Share	0.82
Cash Per Share	0.12
Liquidity Current Ratio	3.1895
Liquidity Quick Ratio	2.5135
Liquidity Cash Ratio	0.7481
Gearing Debt to Equity Ratio	0.2799
Gearing Debt to Asset Ratio	0.2187
Working capital per thousand Ringgit sale	51.5%
Days to sell the inventory	125
Days to collect the receivables	143
Days to pay the payables	157

Technical Analysis

SMA 20	0.517 (Uptrend 22 days)
SMA 50	0.501 (Uptrend)
SMA 100	0.498 (Uptrend)
SMA 200	0.509 (Same)
MACD (26d/12d)	0.004463 ( 0.00047 )
Signal (9)	0.005725 ( 0.000315 )
MACD Histogram	0.001262 (Bearish trend 6 days)

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue and pbt mainly attributable to the increase in local and export sales from the Group's Fast Moving Consumer Goods business

- Estimate next 4Q eps after 2012 Q3 result announced = 185972*0.08/300000 = 0.0496(ROE 8%), estimate PE on current price 0.515 = 9.58(DPS 0.04)
- Estimate next 4Q eps after 2012 Q2 result announced = 0.0085*4 = 0.034, estimate highest/lowest PE = 15/12.79 (DPS 0.04)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 12.76/10.19 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.0407*1.05 = 0.0427, estimate highest/lowest PE = 13.47/11.83 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0323+0.0038)*1.1 = 0.0397, estimate highest/lowest PE = 14.74/11.08 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0285*2*0.95 = 0.0542, estimate highest/lowest PE = 13.56/8.67 (DPS 0.08)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0338*1.1 = 0.0372(10% increase from 0.0338), estimate highest/lowest PE = 18.55/13.98 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0338(follow 2010 cumulative eps), estimate highest/lowest PE = 16.57/13.46 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.04, estimate highest/lowest PE = 14.25/11.13 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0395, estimate highest/lowest PE = 14.68/12.03 (DPS 0.04)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.034, estimate highest/lowest PE = 17.94/12.35 (DPS 0.03)

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