WTHorse's bottomline continued to improve

WTHorse has just announced its results 4Q2007 ended 31/12/2007. For QE31/12/2007, WTHorse's net profit increased by 31.0% q-o-q or 14.2% y-o-y to RM16.9 million. Turnover increased marginally by 1.9% q-o-q or 1.0% y-o-y to RM110 million. For FY2007, WTHorse's net profit increased marginally by 2.2% from RM47.2 million to RM48.2 million, while its turnover has dropped by 1.2% from RM418 million to RM413 million.



WTHorse (closed at RM1.21 as at Mar 3) is now trading at a trailing PE of 5.8 times (using its last 4 quarters' EPS of 20.8 sen) or at a P/Book of 0.6 times (using its NTA per share of RM2.19 as at 31/12/2007). At these multiples, WTHorse is deemed inexpensive.

Technically speaking, WTHorse is still in a bottoming phase with support at RM1.10-13 and resistance at RM1.30. Overhead downtrend line will act as a resistance at RM1.35.


Chart: WTHorse's weekly chart as at March 3, 2008 (courtesy of Quickcharts)

Based on improving performance, WTHorse could be a good candidate for contrarian investment.