KLCI Stock - HSL / 6238 - 2012 Quarter 1

HOCK SENG LEE BERHAD



Company Description

HOCK SENG LEE BERHAD is a marine engineering, civil engineering and construction company. The Company operates through two business segments. The construction segment is engaged in marine and civil engineering works and construction. The property development segment is engaged in the development of residential and commercial properties. The Company undertakes dredging, land reclamation and earthworks, road and bridge construction, coastal protection works, and other infrastructure and building works. Its wholly owned subsidiary, Hock Seng Lee Construction Sendirian Berhad (HSLC), is involved in property development and building construction.

Company Info

Listing Date	1996-07-10
Market Capital (Capital Size)	862,360,480 (Medium)
Par Value	RM 0.20
Board	Main
Sector	Construction
Major Industry	Marine & civil engineering works & construction
Sub Industry	Property Development
Website	http://www.hsl.com.my/

My Analysis

Forecast P/E now	(1.48-0.03)/0.1602 = 9.05 (Moderate)
Target Price	1.76+0.03 = 1.79 (PE 11.0, EPS 0.1602, DPS 0.03)
Decision	BUY if stock price cross SMA20 and selling volume still low or wait stock price below Bolinger lower band with low selling volume
Comment	Revenue decreased 12.2% but higher than preceding year corresponding quarter 12.6%, eps decreased 24.8% but higher than preceding year corresponding quarter 12.2%, cash generated from operating is more than enough to cover all expenses, gross margin still got more than 20%, slightly weaker liquidity ratio at low level now, lower gearing ratio at moderate level now, lower debt ratio, all repayment period is acceptable, higher inventory can indicate more construction works
First Support Price	1.45
Second Support Price	1.35
Risk Rating	MODERATE

Research House

RHB Target Price	1.77 (2011-10-03)
MIDF Target Price	2 (2012-02-29)
AMMB Target Price	2.76 (2012-05-17)
HLG Target Price	2.21 (2012-05-24)
Maybank Target Price	2.1 (2012-05-24)
OSK Target Price	2.59 (2012-05-24)

Accounting Ratio

Return on Equity	22.37%
Dividend Yield	2.03%
Gross Profit Margin	20.28%
Operating Profit Margin	17.80%
Net Profit Margin	18.83%
Tax Rate	25.23%
Asset Turnover	0.8481
Net Asset Value Per Share	0.78
Net Tangible Asset per share	0.78
Price/Net Tangible Asset Per Share	1.88
Cash Per Share	0.36
Liquidity Current Ratio	1.7712
Liquidity Quick Ratio	1.5268
Liquidity Cash Ratio	0.7502
Gearing Debt to Equity Ratio	0.6464
Gearing Debt to Asset Ratio	0.3925
Working capital per thousand Ringgit sale	33.6%
Days to sell the inventory	50
Days to collect the receivables	123
Days to pay the payables	196

Technical Analysis

SMA 20	1.521 (Downtrend 12 days)
SMA 50	1.56 (Downtrend)
SMA 100	1.518 (Uptrend)
SMA 200	1.411 (Downtrend)
MACD (26d/12d)	-0.020816 ( 0.000525 )
Signal (9)	-0.017402 ( 0.000854 )
MACD Histogram	0.003414 (Bearish trend 14 days)
Bolinger Upper Band	1.588
Bolinger Lower Band	1.454

My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue and pbt than FY11Q1 mainly due to the increased activities in construction segment

- Estimate next 4Q eps after 2012 Q1 result announced = 427706*0.205/547160 = 0.1602, estimate PE on current price 1.48 = 9.05(DPS 0.03)
- Estimate next 4Q eps after 2011 Q4 result announced = 409456*0.21/548938 = 0.1566, estimate highest/lowest PE = 10.98/9.13 (DPS 0.03)
- Estimate next 4Q eps after 2011 Q3 result announced =0.0409*4 = 0.1636, estimate highest/lowest PE = 10.54/7.48 (DPS 0.026)
- Estimate next 4Q eps after 2011 Q2 result announced = (0.0378+0.0319)*2*1.05 = 0.1464, estimate highest/lowest PE = 10.15/8.17 (DPS 0.024)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1533*0.97 = 0.1487, estimate highest/lowest PE = 11.73/8.57 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0697*2*1.1 = 0.1533, estimate highest/lowest PE = 12.49/11.05 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.0574*2*1.1 = 0.1263, estimate highest/lowest PE = 15.08/11.99 (DPS 0.026)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 14.95/11.49 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1025*1.1 = 0.1128, estimate highest/lowest PE = 13.88/11.05 (DPS 0.024)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0281*4 = 0.1124, estimate highest/lowest PE = 11.96/8.75 (DPS 0.016)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.0233*4 = 0.0932, estimate highest/lowest PE = 13.13/9.7 (DPS 0.016)

HSL latest news (English)

HSL latest news (Chinese)



Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-05-23	2012	1	N/A	N/A	-	4.58%	4.58%	139199	139199	26213	26213	19599	19599	0.0358	0.0358	704057	276351	207	427706	16208	3480	1350	183720	12728	11378	195098	547160	547160	804325	2012-03-31	20.28%	17.80%	18.83%	25.23%	0.8481	-	0.78	0.78	1.88	0.36	1.7712	1.5268	0.7502	0.6464	0.3925	33.6%	50	123	196
2012-02-28	2011	4	1.75	1.46	0.018	6.38%	21.31%	158587	581515	34955	116598	26141	87265	0.0476	0.1581	683142	273686	206	409456	136120	19047	23055	89252	117073	94018	183270	548938	552009	905747	2011-12-31	24.56%	21.50%	22.04%	25.21%	0.8512	10.4373	0.74	0.74	2.23	0.33	1.8486	1.6504	0.7128	0.6688	0.4006	37.6%	41	152	200
2011-11-22	2011	3	1.75	1.25	-	5.79%	15.68%	150422	422928	30160	81642	22563	61123	0.0409	0.1107	654680	264902	206	389778	82529	13583	16590	89252	68946	52356	141608	551432	552142	694804	2011-09-30	21.41%	19.43%	20.05%	25.19%	0.8755	-	0.71	0.71	1.77	0.26	1.8511	1.6952	0.57	0.68	0.4046	37.0%	31	179	195
2011-08-25	2011	2	1.51	1.22	0.012	5.62%	10.37%	148879	272505	27943	51482	20888	38560	0.0378	0.0697	633783	261850	205	371933	64505	8502	11872	89252	56003	44131	133383	552741	553128	818056	2011-06-30	19.84%	17.99%	18.77%	25.24%	0.879	-	0.67	0.67	2.21	0.24	1.7997	1.6345	0.542	0.7044	0.4132	35.4%	34	177	197
2011-05-25	2011	1	1.77	1.3	-	4.91%	4.91%	123626	123626	23539	23539	17672	17672	0.0319	0.0319	607434	247280	204	360154	40375	4344	2762	89252	36031	33269	122521	553772	553772	941412	2011-03-31	20.58%	18.28%	19.04%	24.92%	0.8552	-	0.65	0.65	2.62	0.22	1.8072	1.6415	0.528	0.687	0.4071	36.2%	35	182	204
2011-02-28	2010	4	1.88	1.63	0.012	6.26%	21.27%	150266	488276	28955	98419	21625	73435	0.0397	0.1340	582020	236777	203	345243	54060	21465	19253	75910	32595	13342	89252	544052	547876	968412	2010-12-31	22.00%	18.66%	19.27%	25.31%	0.8389	13.28	0.63	0.63	2.83	0.16	1.7893	1.6093	0.4028	0.6862	0.4068	36.0%	39	201	209
2010-11-25	2010	3	1.94	1.72	-	6.17%	15.77%	134348	338010	27281	69464	20286	51810	0.0370	0.0946	552029	223499	202	328530	36837	18256	14340	75910	18581	4241	80151	547534	547876	1051265	2010-09-30	21.81%	19.99%	20.31%	25.64%	0.8176	-	0.6	0.6	3.2	0.15	1.7542	1.5612	0.382	0.6807	0.4049	35.3%	43	201	215
2010-08-25	2010	2	1.93	1.54	0.012	5.69%	9.99%	111255	203661	23982	42192	17983	31533	0.0327	0.0574	535058	219266	201	315792	23766	10910	6791	75910	12856	6065	81975	549155	549155	873156	2010-06-30	23.52%	21.23%	21.56%	25.01%	0.7825	-	0.57	0.57	2.79	0.15	1.8898	1.7208	0.3962	0.6948	0.4098	44.2%	40	240	227
2010-05-25	2010	1	1.71	1.32	-	4.45%	4.45%	92406	92406	18201	18201	13541	13541	0.0246	0.0246	503058	198460	199	304598	5683	7863	N/A	75910	2180	2180	73730	549496	549496	725334	2010-03-31	21.97%	19.24%	19.70%	25.60%	0.7744	-	0.55	0.55	2.4	0.13	1.9114	1.7265	0.3953	0.652	0.3945	43.9%	42	234	223
2010-02-25	2009	4	1.59	1.27	0.01	6.04%	19.28%	113315	375021	23819	75569	17634	56324	0.0321	0.1025	477755	185595	199	292160	52539	26117	7004	56492	26422	19418	75910	549496	549607	697859	2009-12-31	24.56%	20.73%	21.02%	25.97%	0.785	12.3926	0.53	0.53	2.4	0.14	1.9398	1.7309	0.4358	0.6357	0.3885	43.9%	46	221	217
2009-11-19	2009	3	1.36	1.0	-	5.55%	13.88%	101725	261706	20670	51750	15467	38690	0.0281	0.0704	465314	186666	199	278648	37392	15302	2883	56492	22090	19207	75699	549545	549607	620985	2009-09-30	22.95%	19.96%	20.32%	25.18%	0.7502	-	0.51	0.51	2.22	0.14	1.8908	1.6761	0.4266	0.6704	0.4012	45.5%	52	233	234
2009-08-19	2009	2	1.24	0.92	0.01	4.87%	8.83%	82103	159981	17107	31079	12804	23223	0.0233	0.0423	434198	171147	-	263051	24024	1088	2813	56492	22936	20123	76615	549568	549631	500106	2009-06-30	23.91%	20.37%	20.84%	25.15%	0.7531	-	0.48	0.48	1.9	0.14	1.9033	1.7589	0.4682	0.6506	0.3942	45.5%	34	237	227
2009-05-19	2009	1	1.02	0.695	-	4.12%	4.12%	77878	77878	13973	13973	10419	10419	0.0190	0.0190	405296	152576	-	252720	15163	471	340	56492	14692	14352	70844	549631	549631	423215	2009-03-31	21.37%	17.42%	17.94%	25.43%	0.7946	-	0.46	0.46	1.67	0.13	1.9454	1.7747	0.4882	0.6037	0.3765	42.9%	36	213	204
2009-02-26	2008	4	0.8	0.45	0.0060	4.55%	17.24%	87368	309069	14861	56458	11050	41839	0.0200	0.0756	401608	158967	-	242641	49852	17719	16292	40651	32133	15841	56492	551557	553363	253716	2008-12-31	21.12%	16.74%	17.01%	25.64%	0.7696	6.084	0.44	0.44	1.05	0.1	1.8376	1.6614	0.3735	0.6552	0.3958	41.3%	41	232	225
2008-11-20	2008	3	0.505	0.45	-	4.60%	12.89%	79642	221701	14823	41597	10995	30789	0.0199	0.0556	348523	109658	-	238865	8118	13552	9018	40651	5434	14452	26199	553067	553550	265472	2008-09-30	22.13%	18.50%	18.61%	25.82%	0.8179	-	0.43	0.43	1.12	0.05	2.2266	1.946	0.2577	0.4591	0.3146	44.5%	49	224	169
2008-08-21	2008	2	0.705	0.47	0.016	4.37%	8.64%	77141	142059	13556	26774	10001	19794	0.0181	0.0357	343961	114968	-	228993	8078	6665	7895	40651	14743	22638	18013	553736	554027	315629	2008-06-30	20.70%	17.34%	17.57%	26.22%	0.7786	-	0.41	0.41	1.39	0.04	2.1219	1.8514	0.191	0.5021	0.3342	45.7%	54	247	186
2008-05-15	2008	1	0.89	0.57	-	4.34%	4.34%	64918	64918	13218	13218	9793	9793	0.0177	0.0177	324572	98692	-	225880	855	1811	1007	40651	956	1963	38688	554264	554264	471124	2008-03-31	24.37%	20.05%	20.36%	25.91%	0.7809	-	0.41	0.41	2.07	0.07	2.3243	1.9925	0.4211	0.4369	0.3041	48.6%	60	210	175
2008-02-28	2007	4	0.96	0.735	0.016	4.96%	17.94%	63346	248168	14685	53173	10762	38940	0.0969	0.3497	312804	95710	-	217094	13768	7455	15013	49351	6313	8700	40651	111027	111362	104920	2007-12-31	29.46%	22.90%	23.18%	26.71%	0.7934	2.7025	1.95	1.95	0.48	0.37	2.2844	2.0216	0.4575	0.4409	0.306	46.5%	47	207	171
2007-11-15	2007	3	5.55	0.9	-	4.81%	13.24%	62403	184822	13986	38488	10228	28178	0.0919	0.2530	307929	95110	-	212819	12500	5344	8526	49351	7156	1370	47981	111238	111362	611809	2007-09-30	26.15%	21.86%	22.41%	26.87%	0.8114	-	1.91	1.91	2.88	0.44	2.3283	2.0562	0.5436	0.4469	0.3089	47.4%	47	197	166
2007-08-16	2007	2	5.5	4.86	0.08	4.84%	8.80%	62778	122419	13470	24502	9872	17950	0.0886	0.1611	294416	90456	-	203960	4690	3790	7157	49351	900	6257	43094	111373	111432	84643	2007-06-30	24.94%	21.02%	21.46%	26.71%	0.6367	-	1.83	1.83	0.42	0.39	2.3089	2.0159	0.5163	0.4435	0.3072	58.9%	64	246	203
2007-05-17	2007	1	N/A	N/A	-	4.03%	4.03%	59641	59641	11032	11032	8078	8078	0.0724	0.0724	280133	79800	-	200333	8564	41	912	49351	8523	9435	39916	111502	111502	73591	2007-03-31	21.81%	17.92%	18.50%	26.78%	0.445	-	1.8	1.8	0.37	0.36	2.5222	2.1822	0.5484	0.3983	0.2849	89.9%	97	352	267
2007-02-26	2006	4	N/A	N/A	0.07	5.10%	17.33%	65021	260555	13383	48173	9842	33481	0.0874	0.2963	295053	101886	-	193167	37046	4324	16606	33235	32722	16116	49351	112665	112986	326728	2006-12-31	26.52%	20.24%	20.58%	26.46%	0.2204	9.7864	1.71	1.71	1.7	0.44	2.0742	1.7972	0.5217	0.5275	0.3453	157.7%	202	683	695

Financial Quarter Balance Sheet

year	qrt	Land held for property development (A-0)	Prepaid lease payments (A-0)	Property, plant and equipment (A-0)	Cash and cash equivalents (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Property development costs (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Current tax liabilities (L-1)	Loans & borrowings (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	1	129692	-	113721	195098	36620	14907	26935	187084	16278	8507	-	251566	207
2011	4	94014	-	112647	183721	23246	19982	27845	221687	15930	8043	-	249713	206
2011	3	90347	-	102951	142058	10354	21036	28523	259411	15659	7702	-	241541	206
2011	2	88126	-	101311	133833	11876	26731	28917	242989	14947	9077	-	237826	205
2011	1	87366	-	99176	122971	10658	-	27933	259330	14386	6257	-	226637	204
2010	4	87344	-	96175	89702	13077	-	27013	268709	14067	5413	-	217297	203
2010	3	86641	1001	94262	80601	14803	-	25936	248785	12511	6400	-	204588	202
2010	2	67175	1008	73683	82425	13861	-	21311	275595	11209	8472	-	199585	201
2010	1	66950	1014	76427	74180	10056	-	24639	249792	10813	5447	-	182200	199
2009	4	66721	1020	70111	76360	10982	-	25626	226935	10368	4618	-	170609	199
2009	3	66030	1027	60769	76149	13332	-	24989	223018	8176	4525	-	173965	199
2009	2	72345	1033	47545	77064	5251	-	18527	212433	6553	6267	-	158327	-
2009	1	72236	1039	47915	71294	5665	-	19269	187878	6535	4420	-	141621	-
2008	4	72153	1046	48289	56942	6036	-	20834	196308	6531	3572	-	148864	-
2008	3	72231	1052	44999	26649	7381	-	21633	174578	6251	3092	-	100315	-
2008	2	71995	1058	39323	20845	8480	-	21052	181208	5830	4209	2383	102546	-
2008	1	71744	1065	35724	39138	10230	-	20608	146063	5743	3521	-	89428	-
2007	4	71566	1071	34917	41101	2984	-	20627	140538	5863	3338	-	86509	-
2007	3	65317	1196	33970	48430	3835	-	20406	134775	6012	3794	-	85304	-
2007	2	64668	1202	33810	43543	5127	-	19590	126476	6116	5765	-	78575	-
2007	1	61358	1091	32030	40366	6506	-	18522	120260	6193	4566	-	69041	-
2006	4	62924	1097	33035	49800	4028	-	22413	121756	6427	4468	-	90991	-

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Finance/interest income
2012	1	139199	6613	110963	175	185	3637	1	1604
2011	4	158587	8813	119641	52	475	5322	1	908
2011	3	150422	7596	118220	178	77	3057	1	1116
2011	2	148879	7054	119346	116	162	2918	1	1282
2011	1	123626	5866	98181	121	350	3200	1	1065
2010	4	150266	7329	117206	386	73	5086	1	1294
2010	3	134348	6994	105045	-	922	3372	1	428
2010	2	111255	5997	85089	-	245	2797	2	368
2010	1	92406	4660	72109	-	398	2919	-	425
2009	4	113315	6185	85489	-	624	4957	0	326
2009	3	101725	5204	78379	-	74	3119	1	369
2009	2	82103	4303	62475	1	69	2973	-	384
2009	1	77878	3554	61232	-	56	3138	-	409
2008	4	87368	3811	68913	0	354	4183	-	235
2008	3	79642	3828	62014	-	97	2992	-	90
2008	2	77141	3555	61176	31	86	2676	-	212
2008	1	64918	3425	49097	-	87	2891	-	201
2007	4	63346	3923	44683	0	521	4676	-	177
2007	3	62403	3758	46084	-	74	2753	-	346
2007	2	62778	3598	47119	-	101	2562	-	272
2007	1	59641	2954	46633	-	37	2357	-	344
2006	4	65021	3541	47778	1	47	4132	-	226

Financial Quarter Segments Revenue

year	qrt	Property development	Construction
2012	1	5657	133542
2011	4	4134	154453
2011	3	4435	145988
2011	2	7383	141496
2011	1	6063	117563
2010	4	5818	144448
2010	3	6906	127443
2010	2	10262	100993
2010	1	7577	84829
2009	4	7965	105350
2009	3	7201	94524
2009	2	7284	74819
2009	1	6929	70949
2008	4	8859	78509
2008	3	6947	72695
2008	2	7361	69780
2008	1	8710	56208
2007	4	7721	55625
2007	3	8907	53496
2007	2	13781	48997
2007	1	14028	45613
2006	4	7723	57298

Financial Quarter Segments Profit

year	qrt	Property development	Construction
2012	1	1955	24254
2011	4	1808	33143
2011	3	2141	25856
2011	2	2337	27765
2011	1	2117	21419
2010	4	2071	26881
2010	3	2142	25133
2010	2	3394	20583
2010	1	2169	16030
2009	4	2088	20285
2009	3	1615	19044
2009	2	1521	15571
2009	1	1502	12455
2008	4	2077	12550
2008	3	1862	12870
2008	2	1708	11636
2008	1	2569	10448
2007	4	2256	12252
2007	3	2703	10935
2007	2	4254	8944
2007	1	3432	7256
2006	4	2036	11121

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

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●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

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●CHANGES IN SHAREHOLDING

ARCHIVES

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●CHANGES IN SHAREHOLDING