KLCI Stock - AIRPORT / 5014 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	6,715,500,005 (Very Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(5.55-0.2247)/0.401 = 13.28 (Moderate)
Target Price	6.02+0.2247 = 6.24 (PE 15.0, EPS 0.401, DPS 0.2247)
Decision	BUY if stock price below SMA20 and sell volume is not high or when MACD move back to bullish trend
Comment	Revenue decreased 21.5% but higher than preceding year corresponding quarter 6.5%, eps decreased 17.5% but higher than preceding year corresponding quarter 5.5%, cash generated from operating enough for financing expenses and also got enough cash generated from financing to cover all investing expenses, operating margin still maintaining high, stronger liquidity ratio from moderate to high level now, lower gearing ratio from high to above moderate level now, debt ratio decreased 11% from historical high, primary profit contribution segment - Airport services still growth and benefit from new rate
First Support Price	5.5
Second Support Price	5.3
Risk Rating	LOW

Research House

HLG Target Price	6.5 (2012-04-27)
HwangDBS Target Price	6.05 (2012-04-27)
Maybank Target Price	7.1 (2012-04-27)
MIDF Target Price	6.72 (2012-04-27)
CIMB Target Price	6.05 (2012-06-01)
OSK Target Price	7.53 (2012-06-04)

Accounting Ratio

Return on Equity	12.36%
Dividend Yield	4.05%
Gross Profit Margin	89.50%
Operating Profit Margin	25.96%
Net Profit Margin	23.36%
Tax Rate	33.15%
Asset Turnover	0.3521
Net Asset Value Per Share	3.82
Net Tangible Asset per share	-0.6
Price/Net Tangible Asset Per Share	-9.58
Cash Per Share	1.09
Liquidity Current Ratio	2.86
Liquidity Quick Ratio	2.7349
Liquidity Cash Ratio	1.7966
Gearing Debt to Equity Ratio	0.8695
Gearing Debt to Asset Ratio	0.4651
Working capital per thousand Ringgit sale	44.8%
Days to sell the inventory	233
Days to collect the receivables	82
Days to pay the payables	1765

Technical Analysis

SMA 20	5.634 (Downtrend 3 days)
SMA 50	5.673 (Downtrend)
SMA 100	5.635 (Same)
SMA 200	5.637 (Downtrend)
MACD (26d/12d)	-0.012123 ( 0.006635 )
Signal (9)	-0.005275 ( 0.001712 )
MACD Histogram	0.006848 (Bearish trend 2 days)
Bolinger Upper Band	5.78
Bolinger Lower Band	5.488

My notes based on 2012 quarter 1 report (number in '000):-
- Higher revenue and pbt than FY11Q1 mainly contributed by a positive growth of 18.1% or RM37.1 million from aeronautical revenue which was mostly derived from passenger service charges and landing charges driven by higher passenger and aircraft numbers and the implementation of new rates. However, the increase in revenue from passenger service charges was negated by lower MARCS PSC as the Group is no longer entitled to claim for MARCS PSC upon the implementation of the new rates which is equivalent to the benchmark rate as stipulated in the operating agreements signed on 12 February 2009. Further, the improvement in revenue was also derived from the Group’s retail business which improved by 15.8% or RM17.9 million riding on the passenger growth, particularly from LCCT

- Hotel revenue grew 34% or RM5.3 million due to higher revenue from food and beverage related services which increased by 61.0% or RM3.7 million contributed by the catering business for various events held at Sepang International Circuit. Revenue from room occupancy also contributed to the positive variance by 17.0% or RM1.6 million mainly resulting from higher average room rates despite lower occupancy by 2.3% from 71.5%

- The decrease in agriculture revenue was due to lower price attained for fresh fruit bunches (“FFB”) per tonne (RM148 or 18.7% lower) coupled with lower production volume for the period (a decrease of 3,164MT or 18.8%) (2012: 13,647MT / RM643, 2011:16,811MT / RM791). The FFB price was determined by the price of Crude Palm Oil (CPO) traded in the market. The decrease in production was in line with the industry outlook due to the occurrence of El Nino in recent years which have a direct effect on the current oil palm yield

- Estimate next 4Q eps after 2012 Q1 result announced = 4256630*0.105/1114505 = 0.401, estimate PE on current price 5.55 = 13.28(DPS 0.2247)
- Estimate next 4Q eps after 2011 Q4 result announced = 3546869*0.12/1100000 = 0.3869, estimate highest/lowest PE = 15/13.78 (DPS 0.2247)
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0745+0.0983)*2 = 0.3456, estimate highest/lowest PE = 18.1/15.03 (DPS 0.1975)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0745*4 = 0.298, estimate highest/lowest PE = 21.65/14.44 (DPS 0.1975)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0801*4*1.1 = 0.3524, estimate highest/lowest PE = 18.57/17.26 (DPS 0.1975)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.0764*4*1.1 = 0.3362(deduct 16 million other income for adjustment), estimate highest/lowest PE = 20.64/17.31 (DPS 0.1975)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.06*4*1.1 = 0.264(associates increasing loss), estimate highest/lowest PE = 23.49/21.41 (DPS 0.149)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.3233*0.95 = 0.3071, estimate highest/lowest PE = 19.12/16.55 (DPS 0.229)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.3429*0.9 = 0.3086 (10% drop from 0.3429), estimate highest/lowest PE = 17.24/14.81 (DPS 0.229)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.086*4 = 0.344, estimate highest/lowest PE = 13.97/12.89 (DPS 0.233)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.0758*4 = 0.3032, estimate highest/lowest PE = 15.72/11.36 (DPS 0.233)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.068*4 = 0.272, estimate highest/lowest PE = 13.18/11.6 (DPS 0.1855)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0695*4 = 0.278, estimate highest/lowest PE = 13.07/10.27 (DPS 0.1855)
- Estimate next 4Q eps after 2008 Q4 result announced = 0.069*4 = 0.276, estimate highest/lowest PE = 12.37/7.63 (DPS 0.1855)

AIRPORT latest news (English)

AIRPORT latest news (Chinese)