Imaspro's net profit grew further

As noted in an earlier post (go here), Imaspro is involved in the manufacturing of pesticides and plant micronutrients, distribution and agency of pesticides and other agrochemicals, and trading of pesticides and other agrochemicals.

Imaspro has just announced its results for 3Q2008 ending 31/3/2008. Its net profit increased by 29.0% q-o-q or 81.3% y-o-y to RM5.6 million, while turnover increased by 52.7% q-o-q or 133% y-o-y to RM51.4 million. The company has benefited from increased demand form its overseas customers.



Imaspro (closed at RM1.46 as at May 27th) is now trading at a trailing PE of 7.5 times (based on last 4 quarters' EPS totaling 19.5 sen) or at a P/Book of 1.5 times (based on NTA per share of RM0.98 as at 31/3/2008). With the strong growth experienced in the last 2 quarters, I believe that Imaspro's profitability growth will continue. As such, Imaspro is deemed attractive based on these multiples.

Imaspro share price has broken above its medium-term downtrend line at the RM1.30 level in April. The share price will now encounter the heavily congested area between RM1.50-60 level. If it can surpassed this resistance area, it may re-test its all-time high of RM1.75.


Chart: Imaspro's daily chart as at May 27th, 2008 (source: Tradesignum.com)

Based on strong growth, improving financial performance & attractive valuation, Imaspro is a good stock for medium-term investment.