Yesterday, it has announced its results for QE31/7/2007. The net profit increased by 20% q-o-q or 30% y-o-y to RM5.0 million. Turnover has also increased by 12.3% q-o-q or 26.9% y-o-y to RM51.1 million. The improved performance was attributable to increased capacity in its Kluang plant as well as the higher sale of premium products.
If the company can maintain its last quarter's EPS of 3.92 sen for the full year, it could report EPS of 15.68 sen. At yesterday's closing price of RM1.48, Adventa would be trading at a PE of 9.4 times. For a company with steady growth, this PE multiple is not too demanding.
The share price of Adventa is in a steady uptrend, with trendline support at RM1.35/40 level. A break above the overhead horizontal resistance of RM1.52/53 could signal the next upward rally for this stock.
Chart : Adventa's daily chart as at September 20 (courtesy of Quickcharts)
Based on nice technical set-up and healthy financial performance, Adventa is still a BUY at this level.
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