Evergreen's net profit keeps rising

Evergreen has just reported its results for QE30/6/2007. Its net profit increased by 13.2% q-o-q or 128% y-o-y to RM32.1 million. This was achieved on a turnover of RM192.6 million, which represents an increase of 15.5% q-o-q or 48.6% y-o-y. Based on the first 6 months' EPS of 12.6 sen, Evergreen can potentially hit a full year's EPS of 25.2 sen. At a closing price of RM1.42 (as at August 21), this stock is trading at a PE of 5.6 times. That's very attractive.



Evergreen has dropped quite sharply in the current market sell-off. From a high of RM2.16 on May 24, the stock hit an intra-day low of RM1.16 on August 17. It broke its uptrend line support at the RM1.45 level. Below that, it can find support at the horizontal support line of RM1.30 & RM1.15.


Chart : Evergreen's weekly chart as at August 20 (courtesy of Quickcharts)

Based on good financial performance & attractive valuation, Evergreen is a good stock to buy for the medium-term.