YeeLee- a very attractive consumer stock

Result Update

For QE31/3/2013, YeeLee's net profit increased by 5% q-o-q or 137% y-o-y to RM8.4 million while revenue dropped 2% q-o-q or 8% y-o-y to RM160 million. The decline in revenue was attributable to the discontinuance of distributorship of Procter and Gamble products in September 2012. The silver lining to this negative development is that the company's profit margin rebounded.

The performance of the two main divisions are:
1. The manufacturing division registered an increase in profit before tax by 53.8% y-o-y from RM4.00 million to RM6.16 million . This was achieved on the back of 1.2% drop in revenue. The better performance was mainly contributed from palm oil refinery and mill division as both divisions continued to achieve profitability arising from higher oil extraction rate ("OER") and better FOB olein margin over crude palm oil ("CPO") price.
2. The trading division managed to achieve higher profit before tax of RM3.38 million as compared to a loss of RM0.40 million in the same quarter of last year. This was contributed from higher sales of products portfolio with better profit margin coupled with lower advertisement and promotion expenses in this quarter.
Finally, the Share of profit from an associate, Spritzer increased from RM841k to RM1.33 million. 


Table: YeeLee's last 8 quarterly results


Chart 1: YeeLee's last 27 quarterly results

Valuation

YeeLee (closed at RM1.10 yesterday) is now trading at a PE of 6 times (based on annualized EPS of 18.6 sen, calculated using the average EPS of last 2 quarters of 4.65 sen). That's very cheap for a consumer stock.

Technical Outlook

YeeLee has broken above a large descending triangle (ABC) at RM0.85-0.90. It should test the horizontal line at RM1.25 soon. An upside breakout of this resistance could send the stock to RM1.70. 


Chart 2: YeeLee's monthly chart as at Mar 22, 2013 (Source: Quickcharts)

Conclusion

Based on improved financial performance, attractive valuation & positive technical outlook, YeeLee is a good stock to hold for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, YeeLee.

Timecom- you have come a long way

Timecom broke above the horizontal line at RM4.70 earlier today. In the afternoon, it tested its long-term downtrend line at RM4.75-4.80- even hitting a high of RM4.85. It will be interesting to see whether Timecom can surpass the downtrend line - be it today or tomorrow. The indicators have turned upward and the chance of a successful breakout is good. Timecom's next resistance would be at the horizontal line at RM5.60 & then at RM7.00.


Chart 2: Timecom's weekly chart as at May 22, 2013_4.00pm (Source: quickcharts)

Conclusion

Based on potential bullish technical outlook, Timecom coudl be a good stock for trading BUY or for long-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Timecom.

Kianjoo- look out for the Bonus Issue

Result Update

For QE31/3/2013, Kianjoo's net profit dropped 32% q-o-q but increased by 12% y-o-y to RM30 million while revenue has similarly dropped by 3% q-o-q but rose by 13% y-o-y to RM301 million. When compared to the immediate preceding quarter (QE31/12/2012), revenue from Cans & Cartons division dropped due to higher orders from customers in QE31/12/2012 to meet festive season demand. Pre-tax profit for Cans division dropped 19% q-o-q to RM34.9 million (due mainly to derivative losses of RM1.8 million cf. gain of RM4.2 million previously). Cartons division's pre-tax profit dropped 21% q-o-q to RM3.8 million due to lower sales & higher operating overhead & cost. Contract Packaging Services division reported lower revenue of  RM12.8 million (from RM14.7 million ) and a pre-tax loss of RM2.1 million cf. to a profit of RM0.3 million previously


Table: Kianjoo's last 8 quarterly results


Chart 1: Kianjoo's last 26 quarterly results

Valuation

Kianjoo (closed at RM2.66 yesterday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 27.3 sen). At this multiple, Kianjoo is deemed fairly attractive.

Outstanding Corporate Exercise

Kianjoo has proposed a Bonus Issue of 1-for-2 and a Rights Issue of warrant on the basis of 1-for-4 shares held after the Bonus Issue at a price of only RM0.01 each. This corporate exercise attracted opposition from Canone, the present majority shareholder earlier went it was not a registered owner of the shares which it successfully bid in an auction. With the ownership of Kianjoo registered in its name, Canone- like all Minority shareholders- should welcome the proposed Bonus Issue.

Technical outlook

Kianjoo is in an uptrend line with support at RM2.20. Presently it is resting on the horizontal line at RM2.65. From here, Kianjoo may slowly rise again, especially when the date of entitlement of the Bonus Issue has been finalized.


Chart 2: KIanjoo's weekly chart as at Mar 22, 2013_11.00am (Source: Quickcharts)

Conclusion

Based on improved financial performance, attractive valuation & positive technical outlook, Kianjoo is a good stock to hold for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Kianjoo.

JTInter- bottom-line rebounded

Result Update

For QE31/3/2013, JTinter's net profit rebounded to RM40 million from RM3 million in QE31/12/2012 or RM38 in QE31/3/2012. Revenue was mixed- up 7% q-o-q but down 4% y-o-y to RM310 million. JTInter's revenues increased q-o-q due to higher sales volume. Bottom-line improved q-o-q, driven by higher sales volume, lower marketing investments and lower operating expenditures in the current quarter. In addition, there was a one-time restructuring impact of the Group leaf and stemmery operations amounting to RM12.2 million in the preceding quarter.



 Table: JTInter's last 8 quarterly results

 
 Chart 1: JTInter's last 24 quarterly results

Valuation

JTInter (closed at RM6.80 yesterday) is now trading at a PE of 15.5 times (based on last 4 quarters' EPS of 44 sen, after adjusting for the one-time restructuring expenses of RM12.2 million incurred in QE31/12/2012). For a 'consumer' stock, JTInter is deemed fairly valued. It paid dividend of 41 sen in FY2012 & 54 sen in FY2011. Based on last FY dividend payout, its dividend yield is at a respectable 6%.

Technical outlook

 JTInter is still in an uptrend line. Its upside is capped at RM6.80-7.00. Until it can break above that level, JTInter is expected to swing between the uptrend line (at RM6.20) and the RM7.00 mark.


Chart 2: JTInter's weekly chart as at May 22, 2013_11.00am (Source: Quickcharts)

Conclusion

Based on improved financial performance, reasonable valuation & positive technical outlook, I would revise JTInter's rating from SELL INTO STRENGTH to HOLD.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, JTInter.

Sarawak stocks due for a correction?

Yesterday, I posited that property stocks may have overshot and are thus ready for a bit of correction. The other group of stocks that has done very well is the Sarawak stocks, whether Oil & Gas stocks or not. There are tentative signs that these stocks may have reached a temporary top. I have listed 3 of them below.


Chart 1: CMSB's daily chart as at May 22, 2013_9.30am (Source: quickcharts)



Chart 2: Deleum's daily chart as at May 22, 2013_9.30am (Source: quickcharts)


Chart 3: Dayang's daily chart as at May 22, 2013_9.30am (Source: quickcharts)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, CMSB, Deleum & Dayang.

Shang- the Land of Elevated Valuation

Result Update

For QE31/3/2013, Shang's net profit increased by 128% q-o-q or 29% y-o-y to RM24 million while revenue increased by 4% q-o-q or 17% y-o-y to RM128 million. Bottom-line improved q-o-q due mainly to stronger profit contribution from Rasa Ria Resort and Shangri-la Hotel KL.


Table: Shang's last 8 quarterly results


Chart 1: Shang's last 28 quarterly results

Valuation

Shang (closed at RM6.10 yesterday) is now trading at a PE of 37 times (based on last 4 quarters' EPS of 16.5 en). Its Price to Book is 3.0 times (based on NTA of RM2.03 as at 31/3/2013). Its dividend yield is a minuscule 1.7%. How can this stock trade at such demanding valuation? The answer is expectation of privatization by Robert Kuok. To me, Shang is priced for disappointing return.

Technical Outlook

Shang has been rising gradually over the past 5 years. Lately, its share price has rocketed higher on rumor of privatization. Only time will tell whether this will happen or otherwise. If it does not materialize, the share price would correct (to a more gradual uptrend).


Chart 2: Shang's weekly chart as at May 21, 2013 (Source: quickcharts)

Conclusion

Despite the improved financial performance, Shang is difficult stock to call since it has risen so sharply over the past few months. I feel that the prudent approach is to SELL INTO STRENGTH.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Shang.

Boxpak- poised to rise?

Result Update

For QE31/3/32013, Boxpak's net profit dropped 13% q-o-q or 1% y-o-y to RM3.5 million while revenue was higher by 135 y-o-y but dropped 7% q-o-q to RM61 million. Revenue dropped q-o-q as previous quarter was higher due to festive carton in Vietnam operations. Bottom-line dropped q-o-q due to implementation of minimum wages in Malaysia & revision to minimum wages in Vietnam.


Table: Bixpak's last 8 quarterly results


Chart 1: Boxpak's last 22 quarterly results

Valuation

Boxpak (closed at RM2.45 yesterday) is now trading at a PE of 7.8 times (based on last 4 quarters' EPS of 31.6 sen). At this multiple, Boxpak is deemed fairly valued for a small-cap stock.

Technical Outlook

Boxpak is in a gradual uptrend. For the past 1 years, Boxpak has been trapped with a symmetrical triangle with resistance at RM2.30. On May 15, it broken above that resistance, albeit on thin volume. If it can recruit more support, Boxpak may continue with its prior gradual uptrend.


Chart 2: Boxpak's weekly chart as at May 21, 2013 (Source: quickcharts)

Conclusion

Based on satisfactory financial performance & potentially bullish technical breakout, Boxpak could be a good stock for long-term investment. Its valuation is however not cheap for a small-cap.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Boxpak.

POS- Top-line & bottom-line still rising

Result Update

For QE31/3/2013, POS's pre-tax profit increased by 10% q-o-q or 13% y-o-y to RM50 million while revenue increased by 10% q-o-q or 12% y-o-y to RM344 million. The increase in pre-tax profit was due to a jump in profit contribution from the Mail segment from RM33.4 million to RM54.7 million & fair value adjustment to investment properties of RM1.1 million. This had more than offset the losses incurred by the Courier & Other segments of RM239k & RM2.2 million, respectively. Other Income also dropped from RM12.4 million to RM6.2 million.

Net profit dropped 37% q-o-q but increased by 21% y-o-y to RM32 million. The q-o-q decline in net profit was due to tax credit of RM6.0 million- a result of over-provision in tax in prior years.

 
 Table: POS's last 8 quarterly results


Chart 1: POS's last 30 quarterly results

Valuation

POS (closed at RM4.60 yesterday) is now trading at a PE of 16.3 times (based on last 4 quarters' EPS of 28.3 sen). This PE multiple is deemed reasonable due to its strong CAGR of its pre-tax profit of 25% last year. If this growth rate can sustain, POS's PEG ratio is only 0.64 time.

Technical Outlook

POS has broken above the line connecting its high for the past 5 years (at RM4.20). With this breakout, POS's uptrend is likely to accelerate.


Chart 2: POS's weekly chart as at May 21, 2013 (Source: quickcharts)

Conclusion

Based on satisfactory financial performance, reasonable valuation & positive technical outlook, POS is still rated a good stock for long-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, POS.

Properties index has overshot

The Properties index has moved up very well since October last year when I first posited that property stocks were starting to stir (here). Even back in March this year, property stocks were still relatively 'cheap' when the Properties index was poised for an upside breakout (here). Some are now asking the question: Have property stocks gone too high? Is it due for a correction?

From the chart below, we can see that Properties index has been trending higher in an upward channel. I have dawn an uptrend line, SS and three parallel lines (S1, S2 & S3). Any move above S3-S3 & any move below SS would result in a correction back within the channel. We are now above S3-S3 line and we must be prepared for some correction ahead. If your property stocks are sitting on good profit, I think you may now take some profit.


Chart: Properties's weekly chart as at May 21, 2013_11.45am (Source: quickcharts)

EUPE- another small-cap property stock on the move

EUPE is another relatively small property developer which specialized in residential projects in the Northern part of Peninsular Malaysia. For more, go here.

EUPE reported a net profit of RM15 million on a revenue of RM147 million for FYE31/12/2012. This is a big improvement over the result for FYE31/12/2011 where its net profit was RM8 million while its revenue was RM143 million. Its EPS for FY2012 was 11.6 sen while its NTA stood at RM2.05 as at 31/12/2012. At RM0.90 on May 17, EUPE is now trading at a PE of 7.8 times or a Price to Book of 0.44 time. At these multiples, EUPE is deemed fairly valued for a small-cap stock.

Chartwise, EUPE broke above its strong horizontal resistance at RM0.73. Its next strong resistance will be the horizontal line at RM1.00 and then at RM1.10. Based on technical breakout, EUPE could be a trading BUY.


Chart: EUPE's monthly chart as at May 17, 2013 (Source: quickcharts)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, EUPE.

E&O- uptrend to accelerate

E&O has finally broken above the horizontal resistance at RM2.00. With this breakout, E&O's uptrend is expected to accelerate. Its next resistance would be at RM2.50. Based on bullish technical outlook, E&O could be a trading BUY.


Chart: E&O's weekly chart as at May 20, 2013_9.45am (Source: quickcharts)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, E&O.

GMutual- a small-cap property stock at all-time high

GMutual is a relatively small developer with projects in residential, commercial & industrial sectors. It seems to concentrate its development in the Southern part of Peninsular Malaysia. For more, go here.

GMutual reported a net profit of RM22 million on a revenue of RM104 million for FYE31/12/2012. This is a slight improvement over the result for FYE31/12/2011 where its net profit was RM21 million while its revenue was RM96 million. Its EPS for FY2012 was 5.9 sen while its NTA stood at RM0.71 as at 31/12/2012. At RM0.345 on May 17, GMutual is now trading at a PE of 5.8 times or a Price to Book of 0.49 time. At these multiples, GMutual is deemed fairly valued for a small-cap stock.

Chartwise, GMutual has surpassed its high which was recorded on its listing day. A stock that trades in all-time territory tends to go higher. Thus, GMutual's technical outlook is deemed bullish and could be a good trading stock. This bullish outlook should be revised if the share price failed to stay above the RM0.34 mark.


Chart: GMutual's weekly chart as at May 17, 2013 (Source: quickcharts)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, GMutual.

SEG- a short respite?

Result Update

For QE31/3/2013, SEG reported a net profit of RM1.2 million- a turnaround from a net loss of RM2.8 million for QE31/12/2012 but nevertheless a 95%-drop from a net profit of RM27 million a year ago. Revenue increased by 6% q-o-q but dropped 28% y-o-y to RM56 million.

The turnaround in the bottom-line was a result of improved recruitment which led to increased revenue. Nevertheless, this is a far cry from the days of consistent growth which made SEG a darling among the mid-cap stocks on our exchange.


Table: SEG's last 8 quarterly results


Chart 1: SEG's last 20 quarterly results

Valuation

SEG (closed at RM1.63 last Friday) is now trading at a PE of 25 times (based on last 4 quarters' EPS of 6.6 sen). SEG is clearly overvalued and this overvaluation can be rectified in one of two ways- a rise in earning or a drop in share price. Only time will tell which scenario will pan out.

Technical Outlook

SEG is now resting at its support at RM1.60-1.65. A downside breakout of that suppotr would send the stock to the next horizontal support at RM1.25 & then at the psychological RM1.00 mark. Its warrant is similarly hanging onto its support at RM1.08. Its next support would be the psychological RM1.00 amrk & then the horizontal line at RM0.80.


Chart 2: SEG's weekly chart as at May 17, 2013 (Source: quickcharts)


Chart 3: SEG-WA's weekly chart as at May 17, 2013 (Source: quickcharts)

Conclusion

Despite the improved financial performance, SEG is still not out of the wood. Its earning needs to bound back strongly or else the share price would have to adjust lower. As such, SEG is rated as REDUCE or AVOID for now.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, SEG.

Allianz- top-line & bottom-line still growing

Result Update

For QE31/3/2013, Allianz's net profit increased by 20% q-o-q or 1% y-o-y to RM54 million whiel revenue increased by 1% q-o-q or 17% y-o-y to RM862 million. Bottom-line improved q-o-q due to higher profit before tax from the general insurance operations.


Table: Allianz's last 8 quarterly results


Chart 1: Allianz's last 29 quarterly results

Valuation

Allianz (closed RM9.50 on May 17, 2013) is now trading at a PE of 14.4 times (based on last 4 quarters' EPS of 66 sen). With a CAGR of 17%, Allianz's PEG ratio is 0.85 time. Thus Allianz is deemed fairly attractive, with upside of 20% (or commanding a PE of 17 times).

Technical Outlook

Allianz is still in an uptrend, with immediate support at the psychological RM9.00 mark and then at the horizontal line of RM8.50. Immediate resistance will be the psychological RM10.00 mark.


Chart 2: Allianz's weekly chart as at May 17, 2013 (Source: quickcharts)

Conclusion

Based on improving financial performance, fairly attractive valuation & positive technical outlook, Allianz is expected to continue to rise.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Allianz.

GAB- priced to 'perfection'

Result Update

For QE31/3/2013, GAB's net profit dropped 8% q-o-q but rose 19% y-o-y to RM61 million while revenue increased 3% q-o-q or 21% y-o-y to RM443 million. The revenue increased q-o-q, mainly driven by Chinese New Year sales and promotional activities. However, bottom-line was lower q-o-q mainly due to higher costs invested in commercial activities to promote sales for Chinese New Year.


Table: GAB's last 8 quarterly results


Chart 1: GAB's last 25 quarterly results

Valuation

GAB (at RM20.80 as at 4.30pm) is trading at a PE of 29 times (based on last 4 quarters' EPS of 72.5 sen). At this multiple, GAB is deemed overvalued. In a world where everyone is chasing yield, GAB's high PE multiple can be overlooked as it pays a dividend yield of 3.6%. (Note: Carlsbg (at RM15.64) has a dividend yield of 4.0%.)

Technical Outlook

GAB is in an irregular upward channel. It has in fact broken above that channel and its uptrend may even accelerate.


Chart 2: GAB's daily chart as at May 15, 2013 (Source: quickcharts)

We can see that Carlsbg, which was in an expanding triangle, has also broken above the triangle. This means that Carlsbg's uptrend can also accelerate.


Chart 3: Carlsbg's daily chart as at May 15, 2013 (Source: quickcharts)

Conclusion

Based on improving financial performance & positive technical outlook, GAB is expected to continue to rise. As such, GAB is rated a HOLD courtesy of unconventional monetary policies from the central banks from America, Japan & Europe.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, GAB & Carlsbg.

TASCO- sliding top-line led to a dip in bottom-line

Result Update
For QE31/3/2013, TASCO's net profit dropped 43% q-o-q or 35% y-o-y to RM4.4 million while revenue dropped by 11% q-o-q or 21% y-o-y to RM93 million. Revenue dropped due to lower sales in International Business Solutions [IBS] & Domestic Business Solutions [DBS] segments. The impact of the poor global economy continued to be felt in the IBS segment. The drop in Contract Logistics division in the DBS segment was mainly due to a drop in the customs clearance business.


Table: TASCO's last 8 quarterly results

It is quite worrying to see the steady decline in TASCO's revenue over the past 6 quarters. Despite the declining revenue, its profit remained steady until QE31/3/2013. This worrying trend needs to be investigated. Until then, we have to be cautious with TASCO.


Chart 1: TASCO's last 25 quarterly results

Valuation

TASCO (closed at RM2.14 yesterday) is now trading at a PE of 8 times (based on last 4 quarters' EPS of 26.5 sen). At this multiple, TASCO is deemed fairly valued for a mid-cap stock. However, the declining top-line & bottom-line should start to depress the PE multiple and with that, the share price will drop further.

Technical Outlook

TASCO broke above the horizontal line at RM2.10 last week. This resistance-turned-support would be sorely tested over the next few days/weeks. A breakdown of this support as well as the psychological RM2.00 mark would send the stock to its long-term uptrend line (SS) at RM1.80.


Chart 2: TASCO's monthly chart as at May 15, 2013 (Source: quickcharts)

Conclusion

Despite the deteriorating financial performance, TASCO is still rated a HOLD due to its mildly positive technical outlook.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, TASCO.

Bonia- Can it match Padini's sterling performance?

Background

Bonia Corporation Bhd ('Bonia') is involved in manufacturing, marketing, retailing and distribution of high-fashion branded leatherwear, footwear, men's apparel and accessories. For its latest collection & store location, go here.

 Recent Financial Performance

For QE31/12/2012, Bonia's net profit dropped 51% q-o-q or 43% y-o-y to RM7.5 million while its revenue was up 6% q-o-q or 10% y-o-y to RM167 million. The decline in its bottom-line was attributable to increased expenses- a results of its aggressive expansion into the Indonesia, Vietnam & Singapore markets. As sales lagged, the increased operating expenses dragged down its profit.

 

Table: Bonia's last 8 quarterly results

 

Chart 1: Bonia's last 16 quarterly results

Financial Position

As at 31/12/2012, Bonia's financial position is deemed satisfactory, with current ratio at 2.3 times and gearing ratio at 0.25 time.

Valuation

Bonia (closed at RM2.06 yesterday) is now trading at a PE of 14 times (based on last 4 quarters' EPS of 15.3 sen). However, we must bear in mind that the last 4 quarters' earning has been negatively affected by the increased expenses in QE31/12/2012 for reasons as noted earlier. In addition, Bonia provided for impairment loss for its investment in associates and investment properties in QE30/6/2012 totaling RM5.4 million. If the impairment provision is excluded and if its sales from new outlets picked up, Bonia may record a full-year EPS of 20 sen; thus lowering its PE to 10-11 times. 

Note: Affin had issued a positive report on this stock a few days ago (which was picked up by the Star). Affin valued the stock at RM2.36. The current rally could be driven by this report and there is limited upside to the stock.

Technical Outlook

Bonia tested its uptrend line (SS) support at RM1.70 in early May. It has tested its intermediate downtrend line (RR) at RM2.10 yesterday. Can it break above the downtrend line? If not, it may enter into a correction until investors can consider ist future outlook after studying its quarterly result for QE31/3/2013 which is expected to be out next week.

Chart 2: Bonia's daily chart as at May 15, 2013 (Source: quickcharts)

 

Chart 3: Bonia's weekly chart as at May 14, 2013 (Source: quickcharts)

 Conclusion

Based on positive technical outlook, Bonia is a stock worth close tracking. If the result for QE31/3/2013 shows a recovery in its bottom-line (which may justify Affin's positive report), the stock could be a good stock for medium-term investment.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Bonia.

Gamuda & UEMLand- How high can they go?

Gamuda & UEMLand have both tested the high recorded in the past 3-5 years. Undoubtedly, both stocks have exciting stories to tell but investors will soon ask the million-dollar question: How high can you go? I think it is a good idea to slowly take profit on these stocks as they inch higher. You can use the fund to invest in other stocks which have gone up less or are trading at more attractive valuation.


Chart 1: UEMland's weekly chart as at May 16, 2013_9.45am (Source: quickcharts)


Chart 2: Gamuda's weekly chart as at May 16, 2013_9.45am (Source: quickcharts)

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, UEMLand & Gamuda.

Censof- broke above its strong horizontal resistance of RM0.55

Century Software Holdings Bhd ('Censof') is involved in the provision of financial management software solution and payment aggregation software solution. The company has recently proposed to issue up to RM100 million of redeemable convertible notes (RCN), which will be used for future strategic acquisitions and/or repay borrowings undertaken to fund such strategic acquisitions. Go here for more information.

The above fund-raising activity has gotten many people excited about the stock. Censof is a profitable company, which reported a net profit of RM9.4 million on a revenue of RM44.5 million for FYE31/12/2012. At the current price of RM0.58, Censof is trading at a trailing PE of 20 times. That's very high for a mid-cap stock.

From the chart below, we can see that Censof has broken above the strong horizontal resistance at RM0.55. Its next resistance will be at RM0.63.


Chart: Censof's weekly chart as at May 16, 2013_9.30am (Source: quickcharts)

Based on technical consideration, Censof could be a good trading BUY.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Censof.

APM- bottom-line boosted by Yen devaluation

Result Update

For QE31/3/2013, APM's net profit increased by 29% q-o-q but dropped 14% y-o-y to RM28 million while revenue dropped 5% q-o-q but increased by 3% y-o-y to RM285 million.  The improved bottom-line on q-o-q basis was mainly due to "weakening of Japanese Yen against Ringgit at end of 2012 resulted to devaluation of Japanese Yen denominated inventory in 4Q12".


Table: APM's last 8 quarterly results


Chart 1: APM's last 25 quarterly results

Valuation

APM (closed at RM5.44 yesterday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 55 sen). At this PE, APM is deemed fully valued.

Technical Outlook

APM broke above the horizontal line at RM5.25. It may revisit its January 2013 high of RM6.00.


Chart 2: APM's weekly chart as at May 15, 2013 (Source: quickcharts)

Conclusion

Despite the improvement in its financial performance, APM's upside is deemed limited as it is trading at its full value. Technically speaking, the stock may continue to rise & retest its recent high at RM6.00. For those holding the stock, my recommendation is Sell into Strength if the stock approaches the RM6.00 mark.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, APM.