APM is one of the major auto parts manufacturer in Malaysia. Its financial performance in the last quarter (QE 31/3/06) is probably reflective of the state of the Malaysian auto industry for the first half of 2006. Net profit dropped 3.8% q-o-q or 24.6% y-o-y to RM15.1 mil. Turnover at RM230.0 mil has dropped 3.8% q-o-q but was up 7.5% y-o-y. Cumulatively, the last 4 quarters' EPS amounts to 34.3 sen as compared to 31.0 sen in the preceding 4 quarters. As such, APM's PE is undemanding at 6.6 times based on yesterday (July 26) closing price of RM2.25.
Due to the above, APM's share price has also dropped back from its recent high of RM2.82 achieved on Apr 27. What's interesting is that the share price is now approaching the very strong horizontal support of RM2.20 (see Chart below). I believe this could present a trading or investment opportunity for those like to buy a fairly solid stock that can yield a return of 10% for a 6 months' holding period. At the time of writing this post (4.00 p.m.), the stock is at RM2.21.
Chart: APM's monthly chart as at July 26
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