KLCI Stock - TIMECOM / 5031 - 2012 Quarter 2

Company Info 

Market Capital (Capital Size)	1,956,481,079 (Large)
Par Value	RM 0.50

My Analysis 

Forecast P/E now	3.42/0.2769 = 12.35 (Moderate)
Target Price	0.2769*13.5 = 3.74 (PE 13.5, EPS 0.2769)
Decision	BUY if stock price strong sustain and uptrend above 3.4 or wait if got rebound at around 3.25
Comment	Revenue increased 30.4% and also higher than preceding year corresponding quarter 26.6%, eps increased 19.1% and was second consecutive quarter increasing and also higher than preceding year corresponding quarter 22.3%, cash generated from operating enough to cover load repayment but still increased borrowings and spent 14.3% of Group cash to cover capital repayment and investing expenses, operating margin strong improved to above 20%, although lower liquidity ratio but still is acceptable level and this showed the Group better utilize capital in investing activities, higher gearing ratio but still quite low level now and this can help to bring in more investment through leverage, benefit from shorter receivables collection period than payables payment period and longer payables payment period which conserves cash
First Support Price	3.38
Second Support Price	3.25
Risk Rating	MODERATE

Research House

CIMB Target Price	0.85 (2012-02-27)
OSK Target Price	4.52 (2012-09-05)
HLG Target Price	4.12 (2012-09-27)

Accounting Ratio 

Return on Equity	9.05%
Dividend Yield	-
Gross Profit Margin	-
Operating Profit Margin	22.03%
Net Profit Margin	36.49%
Tax Rate	3.81%
Asset Turnover	0.1392
Net Asset Value Per Share	3.96
Net Tangible Asset per share	3.55
Price/Net Tangible Asset Per Share	0.93
Cash Per Share	0.39
Liquidity Current Ratio	1.5345
Liquidity Quick Ratio	1.5345
Liquidity Cash Ratio	0.787
Gearing Debt to Equity Ratio	0.2079
Gearing Debt to Asset Ratio	0.1721
Working capital per thousand Ringgit sale	40.9%
Days to sell the inventory	-
Days to collect the receivables	209
Days to pay the payables	334

Technical Analysis 

SMA 10	3.326 (Uptrend)
SMA 20	3.285 (Uptrend 5 days)
SMA 50	3.336 (Uptrend)
SMA 100	3.335 (Uptrend)
SMA 200	3.27 (Same)
MACD (26d/12d)	0.024719 ( 0.004863 )
Signal (9)	-0.005247 ( 0.007492 )
MACD Histogram	0.029966 (Bullish trend 6 days)
Bolinger Upper Band	3.54
Bolinger Lower Band	3.03

My notes based on 2012 quarter 2 report (number in '000):-
- Higher revenue and pbt mainly due to revenue contribution of RM20.2 million from the newly acquired companies, higher revenue from the Group’s existing business and higher dividend income from its available-for-sale financial asset which offset a higher depreciation charge and financial expenses on new borrowings

- Estimate next 4Q eps after 2012 Q2 result announced = 2065463*0.07/522179 = 0.2769, estimate PE on current price 3.42 = 12.35
- Estimate next 4Q eps after 2012 Q1 result announced = 1836409*0.07/2530775*5 = 0.254, estimate highest/lowest PE = 14.37/10.63
- Estimate next 4Q eps after 2011 Q4 result announced = 1757657*0.06/2530775 = 0.0417, estimate highest/lowest PE = 17.99/12.95 (DPS 0.02)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0426, estimate highest/lowest PE = 18.19/15.38
- Estimate next 4Q eps after 2011 Q2 result announced = (0.009+0.0113)*2*1.05 = 0.0426, estimate highest/lowest PE = 16.31/9.74
- Estimate next 4Q eps after 2011 Q1 result announced = 0.009*4*1.05 = 0.0378, estimate highest/lowest PE = 22.22/14.02

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