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Thursday, February 23, 2017

Axiata: In The Red Thanks To Forex Losses

Result Update

For QE31/12/2016, Axiata reported a net loss of RM309 million while revenue rose 6% q-o-q or 8% y-o-y to RM5.79 billion. Revenue increased q-o-q with all the segments registered positive growth. For the period, operating costs increased by 13.2% q-o-q to RM3,809.9 million mainly arising from higher operation cost in Indonesia, Bangladesh and Sri Lanka. As a result, EBITDA margin decreased by 4.1 percentage points to 34.0%. The Group reported an after tax loss of RM272.1 million arising from higher depreciation and amortization due to network modernization in Indonesia and Bangladesh, net finance cost, foreign translation losses and share of losses from associates and joint ventures.  The foreign exchange (forex) losses amounted to RM685 million at PAT level, was mainly due to the USD exposed debt incurred from the acquisition of Ncell.


Table; Axiata's last 8 quarters' P&L

From the 10-year P&L record, Axiata had reported losses in 2 other quarters: December 2008 & December 2010. In December 2008, Axiata (then TMI) incurred a loss after tax of RM613.5 million “mainly driven by exchange loss in the quarter of RM472.3 million which was mainly derived from XL” which resulted from “the strengthening of USD against IDR, RM and other local currencies”. It was also compounded by “negative contribution from Dialog and share of loss from jointly controlled entities”. 

In December 2010, Axiata recorded loss after tax of RM260.8 million mainly due to the impairment on the investment in an associate. The total impairment was RM1,085.0 million and it as for its investment in Idea Cellular Limited (“Idea”) in conjunction with the impairment assessment requirement under FRS 136 “Impairment Of Assets”. The impairment test was undertaken following an impairment indicator arising from the shortfall between the carrying value and market value of the Group’s investment in India as well as intense competition following the entry of a number of new operators into the Indian market.
From these earlier loss events, we can take it that Axiata is likely to bound back. This is part and parcel of operating in an international environment.


Graph: Axiata's last 40 quarters' P&L

Valuation

Axiata (closed at RM4.53 today) is now trading at a PER of 79x (based on last 4 quarters' adjusted EPS of 5.7 sen). This is not a meaningful guide. A better matrix to look at is the Price to Book ratio of the stock today as compared to the last 2 occasions when it made a loss. This is given below:

I think Axiata is fairly priced compared to its book value or NTA p.s.
  
Technical Outlook

Axiata is in a downtrend line, RR. Its immediate support will come from the horizontal line at RM4.45 & then the recent low at RM4.10.


Chart 1: Axiata's weekly chart as at Feb 23, 2017_15.00  (Source: MalaysiaStock.Biz)
 

Chart 2: Axiata's monthly chart as at Feb 23, 2017_15.00  (Source: MalaysiaStock.Biz)
 
Conclusion

As I believe Axiata can recover in the next 1-2 quarter(s), I rate it as a HOLD or a contrarian BUY if it drops to RM4.00-4.20.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Unisem: Unexciting Earning

Results Update

For QE31/12/2016, Unisem's net profit increased 33% q-o-q but dropped 15% y-o-y to RM51 million while revenue rose 12% q-o-q or 3% y-o-y to RM362 million. Profits increased q-o-q primarily attributable to higher revenue.


Table: Unisem's last 8 quarterly results

From the graph below, we can see that both revenue & profits are at the high for the past 12 years. Its failure to report a higher pre-tax profit and a net profit for QE31/12/2016 as compared to QE31/12/2015 could be an indication that earning has peaked.
 

Graph: Unisem's last 49 quarterly results

Valuation

Unisem (closed at RM2.77 at end of the morning session) is now trading at a PE of 13 times (based on last 4 quarters' EPS of 22.12 sen). At this multiple, Unisem - a cyclical stock - is deemed fairly valued. 

Technical Outlook

Unisem is in an uptrend line, SS. Its upside is capped by the line connecting the recent peaks, with resistance at RM2.80.

 
Chart: Unisem's weekly chart as at Feb 23, 2017_15.00 (Source: MalaysiaStock.Biz)

Conclusion

Based on good financial performance, fair valuation valuation and still positive technical outlook, Unisem remains a good stock for medium-term investment. Its inability to report a higher quarterly earning could be an early sign that its earning has peaked. It may be a good idea to take profit by SELLING INTO STRENGTH at prices above RM2.70.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Petronm: A Bumper Profit (Updated)

Results Update

For QE31/12/2016, PetronM's net profit rose 141% q-o-q or 558% y-o-y to RM113 million owhile revenue rose 26% q-o-q or 22% y-o-y to RM2290 million. Revenue rose y-o-y due to 14%-increase in crude oil (from USD58 to USD40 per barrel) and 13%-increase in sales volume from 7.3 million to 8.3 million barrels. PBT increased due to improvement in price differential between the finished products and processed crudes.


Table: PetronM's last 18 quarterly results (updated)


Graph: PetronM's last 18 quarterly results

Valuation

PetronM (closed at RM4.63 yesterday) is now trading at a PER of 5.3 times (based on annualized EPS of 88 sen). At this PER, PetronM is deemed fvery attractive.

Technical Outlook (Updated Commentary)

PetronM broke above the trading range (ABCD) at RM4.50 3 weeks ago. After it rallied to RM5.20, it pulled back to RM4.50 again. The breakout of the trading range signals the start of the continuation of the prior uptrend.


Chart 1: PetronM's weekly chart as at Feb 22, 2017 (Source: ShareInvestor,com) (updated)

The interesting question is whether Petronm can test the upper line of its upward channel. If it can do so - let alone breaking thru it - Petronm may go above its early 2016 high of RM7.20 to RM8.00.


Chart 2: PetronM's monthly chart as at Feb 22, 2017 (Source: ShareInvestor,com) (updated)

Conclusion

Based on improved financial performance, attractive valuation  & positive technical outlook, PetronM could be a good stock for a medium-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision

Oldtown: Cashing In On the Cafe Society Crowd

Results Update

In QE31/12/2016, Oldtown's net profit rose 93% q-o-q or 120% y-o-y to RM24 million while revenue rose 16% q-o-q or 13% y-o-y to RM116 million. PBT rose q-o-q due to 33%-increase in PBT from café chain operation and 98%-increase in PBT for the Beverage Manufacturing operation mainly due to higher export sales.


Table 1: Oldtown's last 10 quarterly P&L


Table 2: Oldtown's Segmental Result for QE31/12/2016 & FYE31/12/2016

As a result of the big jump in the revenue & profits from the Beverages Manufacturing segment, Oldtown's Top-line & Bottom-line were lifted up significantly. I believe this is an earning event that should lead to re-rating of the stock.


Graph: Oldtown's last 13 quarterly P&L

Valuation

Oldtown (closed at RM2.03 yesterday) is now trading at a PER of 13 times (based on last 4 quarters' EPS of 15.33 sen). If the share price is adjusted for the net cash of RM0.33 per share, the PER would be lowered to 11 times. Assuming its final dividend for FY2017 is same as FY2016 (without the special dividend), Oldtown's dividend yield would be about 4.4%. Based on this DY & the adjusted PER, Oldtown is deemed very attractive for a consumer stock.

Technical Outlook

Oldtown has just broken above its triangle (ABC) at RM1.97. This upside breakout of a continuation pattern means that the stock is likely to continue with its prior uptrend.


Chart 1: Oldtown's weekly chart as at June 20, 2016 (Source: Kenanga/Chartnexus)

The monthly chart shows that Oldtown has broken above its intermediate downtrend line, RR at RM1.65 in May last year. Its next resistance will come form the horizontal line at RM2.20.


Chart 2: Oldtown's monthly chart as at Feb 22, 2017 (Source: ShareInvestor.com)

Conclusion
 
Based on satisfactory financial performance, attractive valuation & bullish technical outlook, Oldtown could be a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Wednesday, February 22, 2017

Emetall: Not Such An Excting Stock After All

Result Update

In QE31/12/2016, EMETALL reported a net loss of RM3.2 million on a 70%-increase in revenue of RM29 million. The loss was incurred mainly due to increase in production cost of steel product and trading activity segment.


Table: EMETALL's last 8 quarters' P&L  

The last 2 quarters of poor earnings raised serious doubt as to the earlier assumption made about this stock.


Graph: EMETALL's last 12 quarters' P&L  

Valuation

EMETALL (closed at RM0.64 yesterday) is now trading at a trailing PER of 8.6x (based on last 4 quarters' EPS of 7.39 sen). With 2 quarters of poor results, EMETALL - a small-cap stock - does not deserve a PER of 8x or better. Thus this stock is deemed fully or over-valued.

Technical Outlook

EMETALL is now hanging onto its intermediate uptrend line, with support at RM0.63. If this uptrend line is violated, it may drop to the support from the horizontal lines at RM0.50 or RM0.40.


Chart 1: EMETALL's weekly chart as at Feb 21, 2017 (Source: Shareinvestor.com)


Chart 2: EMETALL's monthly chart as at Feb 21, 2017 (Source: Shareinvestor.com)

Conclusion

Based on ipoor financial performance and demanding valuation, I downgrade my rating for EMETALL to a SELL.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Pharma: Earnings Plunged

Results Update  (annjoo)

For QE31/12/2016, Pharma's net profit dropped 80% q-o-q or 83% y-o-y to RM4 million while revenue rose 13% q-o-q but dropped 14% y-o-y to RM582 million. Revenue dropped y-o-y mainly due to reduced orders from the concession business, notwithstanding improved contributions from the Indonesian operations and private sector business. As a result of lower revenue and higher finance costs, Pharma posted a lower profit before tax (PBT) of RM4 million. After booking in a deferred tax charge of RM4.27 million, Pharma incurred a net loss of RM900k.

Table: Pharma's last 8 quarterly results


Graph: Pharma's last 41 quarterly results

Valuation

Pharma (closed at RM5.05 yesterday) is now trading at a PER of 29x (based on last 4 quartres' EPS of 17.61 sen).At this PER, Pharma is overvalued.

Technical Outlook

 Pharma is now resting on its uptrend line with support at RM5.00. If this support is violated, Pharma may go into a downtrend. Its next support may come from the horizontal lien at RM4.00.


Chart: Pharma's monthly chart as at Feb 21, 2017 (Source: ShareInvestor.com)

Conclusion

Based on poor financial performance and demanding valuation, Pharma is a stock to avoided. Its only saving grace is that it's now hanging onto a strong technical support. If that support goes, its fall will begin.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Parkson: Net Profit From One-off Gain


Result Update

For QE31/12/2016, Parkson reported a net profit of RM72 million on the back of a revenue of RM1.046 billion. Revenue rose marginally y-o-y but gained 19% q-o-q mainly due to higher consumer spending during the year-end festivities and the holiday seasons.

Parkson returned to profitability due to gain of RM802.3 million on disposal of Beijing Huadesheng Property Management Co Ltd, a subsidiary in China less impairment losses on intangible assets and other receivables of RM313.2 million. Despite the return to profitability, Parkson is not out of the wood yet as its operating loss increased actually to RM30 million from RM11 millionincurred in the same quarter last year.


Table: Parkson's last 8 quarterly results

 
Graph: Parkson's last 40 quarterly results 

Valuation
Parkson (closed at RM0.70 yesterday) is now trading at a PBR of 0.29 times (based on last 4 quarters' NTA of RM2.38 per share). Parkson has a negative PER as it recorded a net loss of RM111 million in the past 4 quarters.

Technical Outlook

Since my last posting, Parkson went below its the 2003 low of RM0.90 to make a low of RM0.62-0.63 in the past 2 months. Judging by the gaps between the 3 moving average lines and the share price, Parkson could be poised to a sharp rebound. All it needs is a convincing turnaround story which alas did not come from the latest quarterly result (though the headline number may look seductive!).


Chart 1: Parkson's monthly chart as at Feb 21, 2017 (Source: ShareInvestor.com)

If we looked at the daily chart, we can see that Parkson has just tested its intermediate downtrend line at RM0.73. If it can break above this downtrend line, we may see a short rally to RM0.85-0.90. I doubt it can surmount the psychological RM1.00 mark.


Chart 2: Parkson's daily chart as at Feb 21, 2017 (Source: ShareInvestor.com)

Conclusion

Based on poor financial performance & bearish technical outlook, Parkson is a good stock for long-term contrarian investment. At the present depressed price, the stock has probably priced for the worst scenario- a winding up. If that happens, you would certainly not lose money as its PBR is at 0.29X. If you have this stock in your portfolio, you should just hold onto it.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Tuesday, February 21, 2017

Padini: Earnings Soared


Result Update

for QE31/12/2016, Padini's bet profit rose 90% q-o-q or 65% y-o-y to RM54 million while revenue rose 38% q-o-q or 25% y-o-y to RM427 million. Revenues rose sharply q-o-q due to the Christmas season and the year-end school holidays. Operating expenses did not increase proportionately to the increase in revenue, resulting in the q-o-q improvement in profit before taxation by 83% (RM33.1million).


Table: Padini's 8 quarterly results

We can see clearly that Padini's net profit was way above the net profit achieved in QE31/12/2015. The acceleration in net profit could herald a new phase of earning growth for Padini.


Graph 2: Padini's P&L  for last 18 quarterly results

Financial Position

Padini's financial position is deemed satisfactory as at Dec 31, 2016 with current ratio at 2.1x and gearing ratio at 0.7x.

Valuation

Padini (closed at RM2.58yesterday) is now trading at a trailing PER of 11x (based on last 4 quarters' EPS of 23.65 sen). At this PER, Padini is very attractive.

Technical Outlook

Padini has broken above its intermediate downtrend line, RR at RM2.40 last week. MACD has hooked up and it could well re-enter the positive territory again. This would signal the co nitnuation of its prior uptrend.


Chart 1: Padini's weekly chart as at Feb 20, 2017 (Source: Shareinvestor.com)

From the monthly chart, we can see that Padini is still in a long-term uptrend line with support at RM2.20.


Chart 2: Padini's monthly chart as at Feb 20, 2017 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance and satisfactory financial position, attractive valuation and positive technical outlook, Padini is a good stock to buy for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Saturday, February 18, 2017

MalaysiaStock.Biz Charting Feature


As you know, I am a believer in technical analysis for both short-term trading and long-term investing. I don’t rely solely on technical analysis to make my calls. I normally support my long-term calls with fundamental analysis and occasionally I would make trading calls based on market observations.

I subscribe to the classical school of technical analysis which doesn't digress too far from Dow’s basic tenets on technical analysis. I support my technical analysis with a few technical indicators, such as moving average, MACD, ADX, Stochastic and RSI.

I believe that traders and investors can survive on simple charting tools- like what you can get from many free online charts. When I first started publishing my articles in nexttrade in 2006, I used Quickcharts because it came together with Kenanga’s trading platform that was provided by N2N. After Kenanga switched the trading platform provider to Excel Force, I migrated to a free online charting website, Tradesignum.

Two years ago, I started using charting tools from ShareInvestor which is a subscription-based financial data provider. Lately I has starting using the free online charting features of MalaysiaStock.Biz.

As a subscription-based service, ShareInvestor provides financial and market data, including charts for all the stocks & indices on Bursa Malaysia, Bursa Derivatives and 8 global stock markets. Its most basic package, ShareInvestor Webpro costs about RM288 per annum (here) and it gives you access to financial data and charts for all Malaysia stocks. The data stretches back to 1977 for FBMKLCI or 1987 for stocks.

As a free online chart program, MalaysiaStock.Biz’s charting has 10-year data which is sufficient for most technical analysis. However, its list of indices is rather short, with only one index: FBMKLCI. What I like most about MalaysiaStock.Biz’s charting feature is that it allows me to save up my study on a particular chart in a link, which I can then embed into my post so that my readers will see my study. 

MalaysiaStock.Biz has placed an advertisement on nexttrade (just below the header). Some of the features of MalaysiaStock.Biz charting feature which I may find useful are:
1) Intra-day stock price update
2) A broad range of  technical indicators (60 all in)
3) 10 years market data
4) Share prices are adjusted for all the dividend and other entitlement news such as issue bonus, share split and etc.

I would recommend that you try out MalaysiaStock.Biz chart. You can do so by go to this link:  http://www.malaysiastock.biz/Stock-Chart.aspx?securitycode=FBMKLCI

If you like to find out some of the useful tips. http://www.malaysiastock.biz/Forum/Topic.aspx?tid=1270&page=1

Friday, February 17, 2017

Kawan: Uptrend Likely to Continue

Background

Kawan Food Berhad ('Kawan') is involved in the manufacturing & sales of frozen Asian food delicacies. It's the largest frozen flour floor food producer in the country as well as the largest manufacturer of roti paratha in the world. Its roti paratha is exported to many countries, including its largest export market, the US. Until end of last year, Kawan operated from its Shah Alam factory. Its new factory in Pulau Indah has been completed end of 2016, which increases its warehouse capacity by 4-5 times.


From Company's website

Recent Financial Results

Kawan's latest financial result is for QE30/9/2016. Its next quarterly result for QE31/12/2016 will be out in 2 weeks time. For QE30/9/2016, its revenue was mixed, down 15% q-o-q but up 10% y-o-y to RM47 million while net profit was the reverse - up 33% q-o-q but practically unchanged y-o-y at RM12 million. Revenue dropped q-o-q due to decrease turnover from all regions except Oceania. Profits rose due to lower advertisement and promotion expenses and favorable RM/USD exchange rate in the current quarter.


Table: Kawan's 8 quarterly results


Graph 1: Kawan's P&L  for last 14 quarterly results

Historical Financial Performance

In the past 11 years, Kawan's revenue & profits has been on a steady uptrend. Its net profit margin as been kept at around 15% but enjoyed a slight bump to 20% last year (probably due to favorable USD/MYR exchange rate).


Graph 2: Kawan's P&L  for last 11 yearly results

Latest Financial Position

Based on its accounts for QE30/9/2016, Kawan's financial position is deemed satisfactory. Current ratio is at 4.3x and gearing ratio at 0.2x. The high current ratio is due to Cash & Bank Balances of RM92 million which included cash reserved for the construction of its new factory in Pulau Indah. As at 30/9/2016, the contracted commitment for Property, Plant & equipment was RM49 million.

Valuation

Kawan (closed at RM4.09 yesterday) is now trading at a trailing PER of 28x (based on last 4 quarters' EPS of 14.4 sen). The high PER reflects the expectation of a jump in earning in the current year due to the increased capacity from the new factory. The question is whether Kawan can utilize the increased capacity fast enough to meet investors' expectation.

Technical Outlook

Kawan is in a long-term uptrend line, with support at RM3.80. On Feb 15, it broke above the horizontal line at RM4.00, turning a strong resistance to a support.


Chart 1: Kawan's weekly chart as at Feb 16, 2017 (Source: MalaysiaStock.Biz)

We can see below that Kawan's uptrend continues after upside breakout of the resistance from horizontal lines. If the current breakout can sustain, this target for this upleg is RM5.00.


Chart 2: Kawan's monthly chart as at Feb 16, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on technical breakout and expected increased earnings from its increased capacity, Kawan could be a good long-term investment. However, we may regard it as a good trading BUY for now as we await the results for the next 2-3 quarters to confirm the uptake for its huge expansion.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

BAT: Earnings Rebounded On One-Off Gain

Result Update

For QE31/12/2016, BAT's net profit rose 41% q-o-q or 53% y-o-y to RM299 million while revenue dropped by 10% q-o-q or 21% y-o-y to RM841 million. Revenue declined 10% q-o-q and Gross Profit declined 17.1% q-o-q due to 33.3%-reduction in contract manufacturing volumes and 4.3%-drop in domestic and duty-free volume.

Operating Expenses rose 10.5% q-o-q largely driven by higher marketing expenditure due to timing of spend, which was partially offset by lower recharges. During the same period, the Group recorded a restructuring income of RM132 million which consists of a gain from the disposal of the land and building which the factory operation is located (RM159 million) which was partially offset by provision for employee redundancy related costs (RM8 million), impairment of asset (RM3 million), provision for obsolete raw materials (RM4 million) and leaseback rental (RM13 million).

As a result, Profit from Operations increased by 27.7% (RM69 million) when compared to the previous quarter. If the impact of one-off restructuring expenses and income is excluded, Profit from Operations would actually decline by 25.7% (RM64 million).


Table 1: BAT's last 8 quarterly results


Chart 1: BAT's last 40 quarterly results
  
Valuation

BAT (closed at RM48.78 yesterday) is now trading at an adjusted PER of 19.4 times (based on the last 4 quarters' adjusted EPS of 252 sen). BAT has paid out quarterly dividend payment totaling of 232 sen; thus giving a Dividend Yield of 4.8%.

When compared to HEIM & Carlbg, BAT's PER & DY are less attractive. HEIM & Carlsbg have higher DY of 5.7% & 5.1% and lower PER of 18.3x & 18.6x respectively.

Technical Outlook

BAT has recently tested its long-term uptrend line, SS support at RM40.00-41.00 and then rebounded.


Chart 1: BAT's monthly chart as at Feb 16, 2017 (Source: MalaysiaStock.Biz)

BAT's upside is capped by the intermediate downtrend line, RR at RM49.00-50.00.


Chart 2: BAT's weekly chart as at Feb 16, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on the poorer financial performance and unattractive valuation, BAT's current rating as a SELL is maintained.However if BAT were to slide to RM49.00-50.00, it could be a Trading BUY for a rebound play.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Thursday, February 16, 2017

GASMSIA: Strong Earnings Growth Sustained

Results Update

For QE31/12/2016, Gasmsia's profit after zakat and taxation rose 19% q-o-q or 402% y-o-y to RM51.6 million while revenue dropped 2% q-o-q or 10% y-o-y to RM1.05 billion. Profits rose q-o-q mainly due to higher gross profit in line with the increase in volume of gas sold and tolling fees.
   

Table: Gasmsia's last 14 quarterly results


Graph: Gasmsia's P&L  for last 20 quarterly results

Valuation

Gasmsia (closed at RM2.76 yesterday) is now trading at a PE of 21.5 times (based on lats 4 quarters' EPS of 12.86 sen). Its dividend yield is decent at 2.9%. At this PER & DY, Gasmsia is deemed fairly valued.

Technical Outlook

Gasmsia broke above its downtrend line at RM2.40 in August last year. It is now hoovering around the horizontal support of RM2.75-2.80. Its next resistance will come from the horizontal line at RM3.10.


Chart: Gasmsia's weekly chart as at Feb 15, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on improved financial performance and positive technical outlook, Gasmsia is considered a good stock for long-term investment.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

HEIM: Earnings Soared

Results Update

In QE31/12/2016, HEIM's net profit increased by 84% q-o-q or 15% y-o-y to RM105 million while turnover rose 50% q-o-q or 10% q-o-q to RM578 million. Revenue rose sharply q-o-q principally driven by higher volumes from festive demand, improved brand portfolio performance and the stabilization of the market following lower volumes observed in the immediate preceding quarter. PBT rose 63.4% q-o-q on the back of increased revenue and timing of commercial spend. PAT rose more than PBT due to lower tax rate as a result of RM13.4 million deferred tax used to reduce tax charge.


Table: HEIM's last 8 quarterly results

 
Graph: HEIM's last 45 quarterly results

Valuation

HEIM (closed at RM15.92 yesterday) is now trading at a trailing PER of 17.6 times (based on last 4 quarters' EPS of 90.47 sen). Its dividend yield is very attractive at 6.0%. Based on PER & DY, HEIM is deemed fairly attractive.

Technical Outlook

HEIM is in an long-term uptrend line. Its immediate support comes from the horizontal line at RM15.90-16.00.


Chart: HEIM's weekly chart as at Feb 15, 2017 (Source: MalaysiaStock.Biz)


Conclusion

Based on good financial performance, fairly attractive valuation & positive technical outlook, HEIM could be a good stock for your investment portfolio.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.