KLCI Stock - PWROOT / 7237 - 2013 Quarter 1

Company Info 

Market Capital (Capital Size)	318,000,000 (Small)
Par Value	RM 0.20

My Analysis 

Forecast P/E now	(1.06-0.05)/0.0708 = 14.27 (Moderate)
Target Price	1.17+0.05 = 1.22 (PE 16.5, EPS 0.0708, DPS 0.05)
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, maintain very high margin, liquidity ratio indicate financial strength still very strong although is weakening in recent year, higher gearing ratio with higher profit in current quarter indicate if this consistent can bring more income in the future and still no concern on lender issue
First Support Price	0.98
Second Support Price	0.84
Risk Rating	MODERATE

Research House

Kenanga Target Price	1 (2012-08-14)
Jupiter Target Price	1.22 (2012-08-29)

Accounting Ratio 

Return on Equity	10.56%
Dividend Yield	4.72%
Gross Profit Margin	-
Operating Profit Margin	57.24%
Net Profit Margin	10.58%
Tax Rate	-
Asset Turnover	0.938
Net Asset Value Per Share	0.64
Net Tangible Asset per share	0.62
Price/Net Tangible Asset Per Share	1.07
Cash Per Share	0.14
Liquidity Current Ratio	3.0317
Liquidity Quick Ratio	2.5321
Liquidity Cash Ratio	0.735
Gearing Debt to Equity Ratio	0.3118
Gearing Debt to Asset Ratio	0.2368
Working capital per thousand Ringgit sale	48.0%
Days to sell the inventory	101
Days to collect the receivables	146
Days to pay the payables	175

Technical Analysis 

SMA 10	1.016 (Uptrend)
SMA 20	1.003 (Uptrend 65 days)
SMA 50	0.839 (Uptrend)
SMA 100	0.676 (Uptrend)
SMA 200	0.578 (Uptrend)
MACD (26d/12d)	0.051304 ( 0.000562 )
Signal (9)	0.059368 ( 0.002016 )
MACD Histogram	0.008064 (Bearish trend 8 days)
Bolinger Upper Band	1.2
Bolinger Lower Band	0.806

My notes based on 2013 quarter 1 report (number in '000):-
- Higher revenue and pbt mainly attributable to the increase in the local and export sales from the Group’s Fast Moving Consumer Goods (“FMCG”) business

- Estimate next 4Q eps after 2013 Q1 result announced = 193137*0.11/300000 = 0.0708, estimate PE on current price 1.06 = 14.27(DPS 0.05)
- Estimate next 4Q eps after 2012 Q4 result announced = 186059*0.1/300000 = 0.062, estimate highest/lowest PE = 11.29/7.5 (DPS 0.05)
- Estimate next 4Q eps after 2012 Q3 result announced = 185972*0.08/300000 = 0.0496(ROE 8%), estimate highest/lowest PE = 10.28/9.17 (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)

PWROOT latest news (English)

PWROOT latest news (Chinese)