For QE30/9/2015, LPI's net profit dropped by 12% q-o-q but rose 18% y-o-y to RM76 million while revenue rose 15% q-o-q or 16% y-o-y to RM350 million. The decrease in profits q-o-q was mainly due to the absence of a one-time gain of RM39.2 million on disposal of investment in equities that contributed to the higher profit for QE30/6/2015.
Table 2: LPIs last 8 quarterly results
If we removed the gain on disposal of investment in equities - which yielded huge gain in QE30/6/2015 & QE31/12/2014 of RM39.2 million & RM59.9 million respectively- then the profit trend is more predictable. Another thing that's clearer is the net profit margin, which is steady at just under 20%.
Chart 1: LPI's last 38 quarterly results
LPI (closed at RM14.44 yesterday) is now trading at a PE of 14.4 times (based on last 4 quarters' EPS of 101 sen). At this PER, LPI is deemed fairly attractive.
However, if we excluded the exceptional gain on disposal of investment in QE30/6/2015 & QE31/12/2014), then LPI's last 4 quarters' EPS would drop from 101 sen to 71 sen. Its PER would rise from 14.4 times to 20.6 times. At this PER, LPI is deemed fairly valued.
LPI is in a long-term uptrend line with support at RM13.00. Immediate resistance is at the all-time high of RM15.00.
Chart 2: LPI's monthy chart as at Oct 8, 2015 (Source: ShareInvestor.com)
Based on good financial performance, reasonable
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, LPI.