Asiafile Corporation Bhd ('Asiafle') is involved essentially in the manufacture & trading of stationery products.
Recent Financial Results
The company has just announced its results for QE30/6/2007. Its net profit increased by 40.7% q-o-q or 12.4% y-o-y to RM10.3 million while turnover has increased by 26.7% q-o-q or 34.8% y-o-y to RM43.6 million. The increased turnover was attributable to big increase in its sale to oversea markets such as the US & Europe.
The company's financial condition is very healthy as its overall operation is essentially financed by Shareholders' Funds. As at 30/6/2007, its Total Assets stood at RM218 million while its Shareholders' Funds amounted to RM194 million. Borrowing was very negligible.
Valuation
Based on its closing price of RM5.60 as at Sep 3 & last 4 quarters' EPS of 48.2 sen, Asiafle is now trading at a PE of 11.6 times. This PE will go down if the company continue to grow its export markets.
Technical Outlook
From the monthly chart below, we can see that Asiafle is in a long term uptrend with support at RM5.50 level. Horizontal support can be seen at the RM5.00 level as well.
Chart 1: Asiafle's monthly chart as at September 3 (courtesy of Quickcharts)
Conclusion
Based on good financial performance & condition as well as nice technical set-up, Asiafle is a good stock to buy for the long-term.
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