KLCI Stock - CSCSTEL / 5094 - 2012 Quarter 2

Company Info

Market Capital (Capital Size)	459,800,000 (Small)
Par Value	RM 1.00

My Analysis

Forecast P/E now	(1.21-0.07)/0.1241 = 9.19 (Moderate)
Target Price	> SMA 200
Decision	Not interested unless stock price very firm support by strong buy volume @ 1.2 or below
Comment	Revenue increased 27.4% and also higher than preceding year corresponding quarter 2.8%, eps increased 91.9% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 68.2%, cash generated from operating more than enough to cover little financing expenses but still spent 0.6% of Group cash to cover investing expenses, margin slightly recovered, liquidity and gearing ratio also indicate very firm financial health but too much resources not utilize to gain more value, all accounting of collection or repayment period is good
First Support Price	1.2
Second Support Price	1.15
Risk Rating	MODERATE

Research House

OSK Target Price	1.16 (2012-08-22)
RHB Target Price	1.66 (2012-08-22)
HLG Target Price	1.49 (2012-08-23)

Accounting Ratio

Return on Equity	1.99%
Dividend Yield	5.79%
Gross Profit Margin	0.00%
Operating Profit Margin	4.09%
Net Profit Margin	4.66%
Tax Rate	25.75%
Asset Turnover	1.3073
Net Asset Value Per Share	2.04
Net Tangible Asset per share	2.04
Price/Net Tangible Asset Per Share	0.59
Cash Per Share	0.62
Liquidity Current Ratio	7.316
Liquidity Quick Ratio	4.8813
Liquidity Cash Ratio	2.9105
Gearing Debt to Equity Ratio	0.1529
Gearing Debt to Asset Ratio	0.1326
Working capital per thousand Ringgit sale	43.8%
Days to sell the inventory	62
Days to collect the receivables	50
Days to pay the payables	25

Technical Analysis

SMA 10	1.192 (Uptrend)
SMA 20	1.196 (Uptrend 4 days)
SMA 50	1.231 (Downtrend)
SMA 100	1.261 (Downtrend)
SMA 200	1.287 (Downtrend)
MACD (26d/12d)	-0.005859 ( 0.001333 )
Signal (9)	-0.011453 ( 0.001399 )
MACD Histogram	0.005594 (Bullish trend 6 days)
Bolinger Upper Band	1.255
Bolinger Lower Band	1.137

My notes based on 2012 quarter 2 report (number in '000):-
- The increase in revenue and profit before tax were due to the increase in sale volume of all our steel products albeit at lower average selling prices

- Estimate next 4Q eps after 2012 Q2 result announced = 761877*0.05/373200 = 0.1021, estimate PE on current price 1.21 = 9.19(DPS 0.07)
- Estimate next 4Q eps after 2011 Q4 result announced = 771767*0.06/373200 = 0.1241(exclude RM6.4 million inventories write-down, ROE 6%), estimate highest/lowest PE = 11.12/10.23 (DPS 0.07)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.1186*0.9 = 0.1067, estimate highest/lowest PE = 13.31/11.43 (DPS 0.07)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.1483*0.8 = 0.1186, estimate highest/lowest PE = 11.89/8.68 (DPS 0.1)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.1483, estimate highest/lowest PE = 11.13/8.56 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.1854*0.8 = 0.1483, estimate highest/lowest PE = 11.4/10.32 (DPS 0.13)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.18*0.9 = 0.162, estimate highest/lowest PE = 10.19/9.57 (DPS 0.14)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2936*0.9 = 0.2642 (10% decrease due to global steel price decreasing), estimate highest/lowest PE = 6.55/5.6 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.2936 (maintained forecast eps due to lower margin), estimate highest/lowest PE = 5.99/4.67 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.2936 (20% growth from 0.2442, world steel price increasing), estimate highest/lowest PE = 6.13/4.6 (DPS 0.2)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.24, estimate highest/lowest PE = 6.42/4.92 (DPS 0.02)
- Estimate next 4Q eps after 2009 Q2 result announced = 0.1012, estimate highest/lowest PE = 13.83/9.88 (DPS 0.02)
- Estimate next 4Q eps after 2009 Q1 result announced = 0.0612, estimate highest/lowest PE = 18.3/15.44

CSCSTEL latest news (English)

CSCSTEL latest news (Chinese)

World Steel News