KLCI Stock - SUNWAY / 5211 - 2012 Quarter 1

Company Info

Market Capital (Capital Size)	3,102,012,009 (Large)
Par Value	RM 1.00

My Analysis

Forecast P/E now	2.4/0.2767 = 8.67 (Moderate)
Target Price	0.2767*10.0 = 2.77 (PE 10.0, EPS 0.2767)
Decision	BUY if stock price can follow uptrend with Bolinger upper band or wait rebound when near to SMA20
Comment	Revenue decreased 15.9% and also lower than preceding year corresponding quarter 2.3%, eps decreased 47.9% but higher than preceding year corresponding quarter 13.4%, cash generated from operating enough to cover financing expenses and got enough borrowings to cover investing expenses, operating margin back to below 10%, weaker liquidity ratio at low level now, lower gearing ratio but still at high level now, lower debt ratio but still consider high, all repayment period is acceptable, inventory and property development cost still high which can indicate still got satisfactory of works amount
First Support Price	2.25
Second Support Price	2.1
Risk Rating	MODERATE

Research House

MIDF Target Price	2.55 (2011-12-20)
TA Target Price	3.16 (2011-12-20)
Maybank Target Price	2.62 (2012-03-01)
Affin Target Price	2.9 (2012-05-10)
AMMB Target Price	2.7 (2012-05-30)
CIMB Target Price	2.7 (2012-05-30)
ECM Target Price	2.65 (2012-05-30)
HLG Target Price	3.2 (2012-05-30)
OSK Target Price	3.31 (2012-05-30)

Accounting Ratio

Return on Equity	1.92%
Dividend Yield	-
Gross Profit Margin	0.00%
Operating Profit Margin	7.41%
Net Profit Margin	10.42%
Tax Rate	21.79%
Asset Turnover	0.4708
Net Asset Value Per Share	2.38
Net Tangible Asset per share	2.13
Price/Net Tangible Asset Per Share	1.08
Cash Per Share	0.61
Liquidity Current Ratio	1.3477
Liquidity Quick Ratio	0.8969
Liquidity Cash Ratio	0.3316
Gearing Debt to Equity Ratio	1.4581
Gearing Debt to Asset Ratio	0.5688
Working capital per thousand Ringgit sale	22.3%
Days to sell the inventory	118
Days to collect the receivables	126
Days to pay the payables	206

Technical Analysis

SMA 20	2.259 (Uptrend 3 days)
SMA 50	2.386 (Downtrend)
SMA 100	2.499 (Downtrend)
SMA 200	Not Available
MACD (26d/12d)	0.004121 ( 0.007207 )
Signal (9)	-0.025667 ( 0.007447 )
MACD Histogram	0.029788 (Bullish trend 11 days)
Bolinger Upper Band	2.482
Bolinger Lower Band	2.036

My notes based on 2012 quarter 1 report (number in '000):-
- The higher profit from property development segment than FY11Q1 was mainly due to the stronger profit contribution from the Group's property projects in Singapore which more than offset the lower billings and profits recorded from the local property developments

- The stronger financial results from construction segment than FY11Q1 was due to the strong contribution from the Abu Dhabi project which achieved practical completion at the end of 2011. In addition, the current quarter performance was also partly
dampened by the slower progress billings of some of the local projects and delay in the commencement work of the Light Rail Transit project

- Better profit from quarry segment than FY11Q1 due to the lower forex loss incurred from its Vietnam operation

- Higher profit from construction segment than FY11Q4 due to the RM23 million provision for impairment losses of plant and machinery and doubtful debts in FY11Q4

- Estimate next 4Q eps after 2012 Q1 result announced = 3406537*0.105/1292505 = 0.2767, estimate PE on current price 2.4 = 8.67
- Estimate next 4Q eps after 2011 Q4 result announced = 3352934*0.11/1292505 = 0.2854, estimate highest/lowest PE = 9.64/7.43
- Estimate next 4Q eps after 2011 Q3 result announced = (0.0715+0.044)*2*1.05 = 0.2426, estimate highest/lowest PE = 11.34/9.15

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