HLFG reported better 2Q2008

HLFG has just announced its results for 2Q2008, which ended 31/12/2007. Its net profit increased by 14.0% q-o-q or 24.6% y-o-y to RM144.3 million, while turnover increased by 11.4% q-o-q or 18.0% y-o-y to RM574 million.

Based on yesterday's closing price of RM5.00, HLFG is now trading at a trailing PE of 9.4 times (using the past 4 quarters' EPS totaling 53 sen) & at a P/Book of 1.33 times (using its NTA per share of RM3.76 as at 31/12/2007). At these multiples, HLFG is not expensive.

From the chart below, we can see that HLFG is trading very near its long-term uptrend line, with support at RM4.80, which is also a strong horizontal support as well.



Chart: HLFG's monthly chart as at February 14, 2008 (courtesy of Quickcharts)

Based on undemanding valuation & attractive technical picture, HLFG maybe a good medium-term BUY.