KLCI Stock - KGB / 0151 - 2012 Quarter 3

KELINGTON GROUP BERHAD


Company Description

KELINGTON GROUP BERHAD, formerly Kelington Engineering Sdn Bhd, is engaged principally in the business of providing engineering services and general trading services specifically in the provision of ultra-high purity (UHP) gas and chemical delivery system solutions. It comprises products and services, such as system design and installation, gas and chemical delivery equipment, control and instrumentation, quality assurance (OA) and quality control (OC), and maintenance and servicing to various foundries (semiconductor/FPD), as well as clients who require UHP gas or chemical delivery systems in Malaysia, the People’s Republic of China, Taiwan and Singapore. The Company’s subsidiaries include Kelington Technologies Sdn Bhd (KTSB), Kelington Engineering (Shanghai) Co., Ltd (KE Shanghai), Kelington Engineering (S) Pte Ltd (KE Singapore) and Kelington Trading (Shanghai) Co., Ltd (KTS).

Company Info 

Listing Date	2009-11-25
Market Capital (Capital Size)	91,767,010 (Very Small)
Par Value	RM 0.10
Board	Main
Sector	Trading/Services
Major Industry	Industrial Engineering Services
Sub Industry	Ultra-high Purity Gas & Chemical
Website	http://www.kelington-group.com/

My Analysis 

Forecast P/E now	(0.575-0.02)/0.0503 = 11.03 (Moderate)
Target Price	0.58+0.02 = 0.60 (PE 11.5, EPS 0.0503, DPS 0.02)
Decision	BUY if stock price sustain and uptrend above SMA50 or wait rebound around SMA200
Comment	Revenue increased 9.7% but lower than preceding year corresponding quarter 30.8%, eps decreased 42.5% and also lower than preceding year corresponding quarter 37.8%, negative net cash from operating hence increased borrowings and spent 37.3% of Group cash to cover all other expenses, current assets improved which may increase revenue in near future, gross margin improving from around 15% to 21%, liquidity ratio indicate heavily depend on receivables to meet current obligation, gearing ratio indicate increase liabilities risk to cover receivables, receivables turnover period still long term which hold out the cash, Malaysia and China business still high profit
First Support Price	0.565
Second Support Price	0.53
Risk Rating	MODERATE

Research House

OSK Target Price	0.75 (2012-06-28)
Kenanga Target Price	0.53 (2012-09-13)

Accounting Ratio 

Return on Equity	15.52%
Dividend Yield	3.48%
Gross Profit Margin	21.04%
Operating Profit Margin	7.64%
Net Profit Margin	7.35%
Tax Rate	21.17%
Asset Turnover	1.335
Net Asset Value Per Share	0.54
Net Tangible Asset per share	0.49
Price/Net Tangible Asset Per Share	1.15
Cash Per Share	0.13
Liquidity Current Ratio	1.9572
Liquidity Quick Ratio	1.9023
Liquidity Cash Ratio	0.4062
Gearing Debt to Equity Ratio	0.7797
Gearing Debt to Asset Ratio	0.4381
Working capital per thousand Ringgit sale	30.3%
Days to sell the inventory	8
Days to collect the receivables	171
Days to pay the payables	91

Technical Analysis 

SMA 10	0.57 (Same)
SMA 20	0.574 (Uptrend 6 days)
SMA 50	0.566 (Uptrend)
SMA 100	0.585 (Same)
SMA 200	0.414 (Uptrend)
MACD (26d/12d)	0.000175 ( 0.000283 )
Signal (9)	0.000549 ( 9.3e-005 )
MACD Histogram	0.000374 (Bearish trend 27 days)
Bolinger Upper Band	0.582
Bolinger Lower Band	0.566

My notes based on 2012 quarter 3 report (number in '000):-
- Higher revenue from Malaysia operation due to contribution from the Malaysian subsidiary of a company acquired during the year

- Revenue from China, Taiwan and Singapore operations decreased due to the timing difference of projects that have been completed and commencement of new projects that are still in the preliminary stages

- In Taiwan, the decrease in revenue was due to one key base build project for a touch screen panel application, that was undertaken in the previous year’s corresponding quarter and is almost completed in the current quarter

- Estimate next 4Q eps after 2012 Q3 result announced = 0.0503, estimate PE on current price 0.575 = 11.03(DPS 0.02)
- Estimate next 4Q eps after 2012 Q2 result announced = 53524*0.15/159595 = 0.0503, estimate highest/lowest PE = 11.73/8.65 (DPS 0.02)
- Estimate next 4Q eps after 2012 Q1 result announced = 0.12, estimate highest/lowest PE = 11.75/8.08 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q4 result announced = 0.12, estimate highest/lowest PE = 9/6.67 (DPS 0.04)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.12, estimate highest/lowest PE = 8.92/6.67 (DPS 0.03)
- Estimate next 4Q eps after 2011 Q2 result announced = 0.12, estimate highest/lowest PE = 7.17/6.13 (DPS 0.03)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.12, after private issues eps = 0.108, highest/lowest PE = 7.59/6.94 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.12, estimate highest/lowest PE = 7.5/5.17, after private issues eps = 0.108, highest/lowest PE = 8.33/5.74 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.095, estimate highest/lowest PE = 7.16/6.42 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.095, estimate highest/lowest PE = 8.63/7.05 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate highest/lowest PE = 9.6/6.6 (DPS 0.03)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.03*3+0.01 = 0.1, estimate PE on current price 0.77 = 7.4(DPS 0.03)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.1, estimate highest/lowest PE = 7.7/6.65 (DPS 0.03)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.1, estimate highest/lowest PE = 9/5.8

KGB latest news (English)

KGB latest news (Chinese)

Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	c_asset	liab	c_liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-11-28	2012	3	N/A	N/A	-	3.04%	7.96%	26410	77198	1941	4750	1530	4011	0.0122	0.0423	91816	75939	40224	38799	-	51592	6756	5022	2406	25131	11778	9372	15759	125639	94830	70986	2012-09-30	21.04%	7.64%	7.35%	21.17%	1.335	-	0.54	0.49	1.15	0.13	1.9572	1.9023	0.4062	0.7797	0.4381	30.3%	8	171	91
2012-08-30	2012	2	0.61	0.455	-	3.33%	4.92%	24065	50788	1818	2809	1679	2481	0.0212	0.0313	88943	72720	35419	33914	-	53524	4575	4980	1123	25498	405	1528	23970	79184	79184	48302	2012-06-30	18.32%	7.87%	7.55%	7.65%	1.5103	-	0.68	0.61	1.0	0.3	2.1442	2.0789	0.7068	0.6617	0.3982	28.9%	7	125	89
2012-05-25	2012	1	1.45	0.6	-	1.59%	1.59%	26723	26723	991	991	802	802	0.0101	0.0101	92463	76290	41564	40008	-	50899	3002	4722	980	24935	7724	6744	18191	79110	79110	79110	2012-03-31	14.74%	3.90%	3.71%	19.07%	1.59	-	0.64	0.58	1.72	0.23	1.9069	1.8794	0.4547	0.8166	0.4495	24.7%	3	140	91
2012-02-28	2011	4	1.12	0.84	0.04	7.56%	21.66%	45375	139710	3420	9759	3044	8715	0.0390	0.1117	98872	90705	48471	46769	-	50401	4234	1248	633	22728	2986	2353	25081	78037	78037	71794	2011-12-31	15.02%	7.72%	7.54%	10.99%	1.413	8.238	0.65	0.64	1.44	0.32	1.9394	1.9337	0.5395	0.9617	0.4902	31.4%	1	169	118
2011-11-17	2011	3	1.1	0.83	-	3.76%	14.09%	38165	94335	1942	6339	1511	5671	0.0196	0.0737	90840	82509	43896	42508	-	46944	9091	1007	1884	22658	8084	6200	28858	76928	76928	66927	2011-09-30	14.61%	5.13%	5.09%	22.19%	1.3766	-	0.61	0.61	1.43	0.38	1.941	1.8826	0.6789	0.9351	0.4832	32.0%	9	148	118
2011-08-04	2011	2	0.89	0.765	-	8.38%	10.34%	36750	56170	3595	4397	3373	4160	0.0426	0.0526	81694	73375	34343	32870	-	47351	2746	759	574	22230	1987	2561	24791	79110	79110	65661	2011-06-30	15.72%	9.86%	9.78%	6.18%	1.364	-	0.6	0.6	1.38	0.31	2.2323	2.1859	0.7542	0.7253	0.4204	36.4%	6	154	109
2011-05-31	2011	1	0.85	0.78	-	1.96%	1.96%	19420	19420	802	802	787	787	0.0099	0.0099	77419	69469	33633	32077	-	43786	2056	135	659	22049	2191	1532	20517	79110	79110	64870	2011-03-31	13.99%	4.21%	4.13%	1.87%	1.1658	-	0.55	0.55	1.49	0.26	2.1657	2.1051	0.6396	0.7681	0.4344	41.4%	10	188	120
2011-02-23	2010	4	0.9	0.62	0.03	9.04%	24.81%	30716	84509	2665	8592	3110	8538	0.0416	0.1143	69249	61477	29010	27610	-	40239	3329	1903	292	27664	5232	5524	22140	74710	74710	50802	2010-12-31	15.76%	8.88%	8.68%	-	1.2204	5.9502	0.54	0.54	1.26	0.3	2.2266	2.1888	0.8019	0.7209	0.4189	40.1%	6	164	116
2010-11-29	2010	3	0.71	0.64	-	7.05%	15.77%	24542	53793	2657	5927	2425	5428	0.0325	0.0727	62265	55073	25407	24257	-	36858	656	1446	2408	27352	2102	4510	22842	74710	74710	52297	2010-09-30	20.83%	10.88%	10.83%	8.73%	1.1718	-	0.49	0.49	1.43	0.31	2.2704	2.2387	0.9417	0.6893	0.408	42.2%	5	157	118
2010-08-24	2010	2	0.85	0.7	-	6.92%	8.73%	15579	29251	2582	3270	2380	3003	0.0319	0.0402	59901	53239	22904	21692	-	36997	247	604	111	27747	851	962	26785	74710	74710	57153	2010-06-30	24.78%	16.66%	16.57%	7.82%	1.1254	-	0.5	0.49	1.56	0.36	2.4543	2.4307	1.2348	0.6191	0.3824	46.8%	4	140	100
2010-05-26	2010	1	0.99	0.69	-	1.81%	1.81%	13672	13672	688	688	623	623	0.0083	0.0083	59233	52751	24194	22918	-	35039	6033	141	55	28140	6174	6229	21911	74710	74710	51923	2010-03-31	13.30%	5.13%	5.03%	9.45%	1.1622	-	0.47	0.47	1.48	0.29	2.3017	2.3017	0.9561	0.6905	0.4085	43.3%	-	164	99
2010-02-25	2009	4	0.8	0.695	0.03	7.64%	37.35%	19169	63837	258	8645	1651	8073	0.0250	0.1221	56677	50146	22261	20751	-	34416	4131	3466	119	20662	7597	7478	28140	66117	66117	51901	2009-12-31	17.56%	1.64%	1.35%	-	1.1315	6.4291	0.52	0.52	1.51	0.43	2.4166	2.3497	1.3561	0.6468	0.3928	45.8%	10	117	115
2009-11-24	2009	3	0.9	0.58	-	13.93%	29.71%	18995	44668	3977	8387	3011	6422	0.0463	0.0988	49951	43321	21775	19812	-	28176	2986	1184	113	20792	4170	4283	16509	65000	65000	N/A	2009-09-30	34.66%	21.00%	20.94%	24.29%	1.2213	-	0.43	0.43	N/A	0.25	2.1866	2.1866	0.8333	0.7728	0.4359	38.5%	-	160	92
2009-11-20	2009	2	N/A	N/A	-	10.07%	15.78%	17005	25673	2778	4410	2176	3411	0.0335	0.0525	48767	42296	23617	21596	-	25150	1095	842	54	20780	253	199	20979	65000	65000	N/A	2009-06-30	23.25%	16.41%	16.34%	21.67%	1.0825	-	0.39	0.38	N/A	0.32	1.9585	1.9585	0.9714	0.939	0.4843	39.2%	-	147	100
N/A	2009	1	N/A	N/A	-	4.71%	4.71%	8962	8962	1344	1344	1019	1019	0.0157	0.0157	N/A	N/A	N/A	N/A	-	N/A	1907	553	27	20547	1354	1327	21874	65000	65000	N/A	2009-03-31	21.62%	15.16%	15.00%	24.18%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2008	4	N/A	N/A	-	N/A	N/A	16041	60058	2131	7060	2263	6606	0.0348	0.1016	45209	39698	23593	21933	-	21616	11524	951	2035	12160	10573	8538	20698	65000	65000	N/A	2008-12-31	26.16%	13.46%	13.28%	-	0.9544	-	0.33	0.33	N/A	0.32	1.81	1.81	0.9437	1.0915	0.5219	41.2%	-	161	126
N/A	2008	3	N/A	N/A	-	N/A	N/A	10781	44017	1357	4929	945	4343	0.0145	0.0668	N/A	N/A	N/A	N/A	-	N/A	4804	648	1953	11756	4156	2203	13959	65000	65000	N/A	2008-09-30	17.74%	12.75%	12.59%	30.36%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2008	2	N/A	N/A	-	N/A	N/A	16327	33236	2149	3572	2248	3398	0.0346	0.0523	N/A	N/A	N/A	N/A	-	N/A	2096	532	1984	12084	1564	420	11664	65000	65000	N/A	2008-06-30	20.97%	13.30%	13.16%	-	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Development Expenditure (A-0)	Goodwill on consolidation (A-0)	Intangible assets (A-0)	Property, plant and equipment (A-0)	Receivables (A-0)	Amount due from customers (A-1)	Cash and cash equivalents (A-1)	Current tax assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Loans & borrowings (L-0)	Amount due to customers (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Provision for taxation (L-1)	Trade and other payables (L-1)
2012	3	189	4887	175	7487	3139	18469	15759	789	2131	9446	29345	523	902	5415	7005	5821	1116	19442
2012	2	255	4887	175	7759	3147	20616	23970	663	2216	2524	22731	531	974	5245	317	4736	637	22979
2012	1	253	4887	169	7796	3068	16071	18191	531	1100	2337	38060	521	1035	5559	2718	3390	536	27805
2011	4	285	199	-	7683	-	26312	25233	383	270	1714	36793	524	1178	5575	1604	4386	1048	34156
2011	3	316	199	-	7816	-	21182	28858	509	2484	1551	27925	203	1185	7400	287	2910	593	31318
2011	2	329	199	-	7791	-	13813	24791	102	1523	3272	29874	203	1270	4844	287	2296	-	25443
2011	1	268	199	-	7483	-	12247	20517	416	1945	4485	29859	201	1355	7479	287	3163	150	20998
2010	4	184	199	-	7389	-	11551	22140	411	1044	1513	24818	203	1197	3222	2341	3207	147	18693
2010	3	201	199	-	6792	-	8579	22842	-	769	978	21905	165	985	4553	172	1932	513	17087
2010	2	201	199	-	6262	-	9281	26785	-	512	1768	14893	171	1041	6938	172	2164	451	11967
2010	1	201	199	-	6082	-	10802	21911	-	-	1266	18772	179	1097	7951	173	2135	414	12245
2009	4	201	199	-	6131	-	7781	28140	-	1387	751	12087	355	1155	4461	170	2571	897	12652
2009	3	201	199	-	6230	-	11075	16509	-	-	2112	13625	806	1157	6536	175	2709	1955	8437
2009	2	153	199	-	6119	-	9603	20979	-	-	1356	10358	806	1215	9214	175	1442	1057	9708
2008	4	94	199	-	5218	-	7749	20698	-	-	1176	10075	812	848	10049	63	2738	231	8852

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Selling and distribution costs	Other expenses
2012	3	26410	411	20853	76	16	2983	260	313
2012	2	24065	139	19657	76	26	2382	167	9
2012	1	26723	189	22784	51	127	2413	212	399
2011	4	45375	376	38559	84	91	2721	276	406
2011	3	38165	431	32589	15	39	3268	182	208
2011	2	36750	222	30973	27	103	1869	208	181
2011	1	19420	15	16704	16	90	1601	264	123
2010	4	30716	445	25874	62	183	1848	206	244
2010	3	24542	232	19430	14	74	2092	183	240
2010	2	15579	202	11719	14	119	1121	130	132
2010	1	13672	65	11854	13	118	980	153	102
2009	4	19169	1393	15802	56	260	1949	130	1234
2009	3	18995	966	12412	12	38	2289	139	204
2009	2	17005	602	13052	13	11	815	91	245
2009	1	8962	325	7024	15	260	739	50	50
2008	4	16041	132	11844	28	369	2278	118	11
2008	3	10781	412	8868	18	49	90	173	226
2008	2	16327	99	12904	22	164	1382	33	1

Financial Quarter Segments Revenue

year	qrt	Others	Elimination/Adjustment	Malaysia	China	Vietnam	Singapore	Taiwan
2012	3	-	-	15919	5942	-	1990	2559
2012	2	-	-	9988	4609	-	2147	6745
2012	1	-	576	6311	2153	22	9750	9063
2011	4	1703	1031	13032	7356	117	9781	14652
2011	3	-	91	10170	6634	1413	8066	11738
2011	2	-	1558	13231	9307	1620	8966	5184
2011	1	-	378	7765	5017	1536	2197	3283
2010	4	-	294	18534	3849	-	3305	5322
2010	3	-	247	12808	4927	-	2250	4804
2010	2	-	38	6713	3157	-	3006	2741
2010	1	-	-	3257	4759	-	2616	3040
2009	4	419	68	4913	7936	-	2825	3144
2009	3	-	-	11513	2052	-	3839	1591
2009	2	171	-	9167	2903	-	2548	1922
2009	1	-	-	4979	1706	-	-	2277
2008	4	426	-	5695	3858	-	-	6062
2008	3	297	-	5527	3314	-	-	1643
2008	2	-	-	11262	13127	-	-	8847

Financial Quarter Segments Profit

year	qrt	Others	Elimination/Adjustment	Malaysia	China	Vietnam	Singapore	Taiwan
2012	3	-	-	2101	1176	-	973	363
2012	2	-	-	1579	718	4	741	233
2012	1	-	-	199	41	2	337	519
2011	4	624	-	796	855	57	314	925
2011	3	-	-	61	347	214	468	788
2011	2	-	-	2177	73	413	977	55
2011	1	-	-	711	154	63	99	40
2010	4	-	-	2348	168	-	138	299
2010	3	-	-	1944	217	-	249	185
2010	2	-	-	1651	161	-	671	52
2010	1	-	-	40	279	-	400	63
2009	4	230	1499	620	1747	-	297	64
2009	3	-	-	3458	255	-	929	195
2009	2	43	-	2321	195	-	342	119
2009	1	-	-	894	128	-	18	275
2008	4	120	-	77	1145	-	-	699
2008	3	64	-	1100	219	-	-	16
2008	2	-	-	1194	1784	-	-	572

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

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