Aji's net profit still growing

Aji has just announced its results for 1Q2009 ended 30/6/2008. Its net profit increased by 3.8% q-o-q or 16.1% y-o-y to RM6.0 million, while its turnover increased by 3.7% q-o-q or 7.8% y-o-y to RM57.6 million.



When I first posted on Aji in November last year (go here), its PE was about 5.9 times. At the point, Aji was trading at RM2.20. 10 months later, Aji was trading at RM2.65 (yesterday's closing price)- a gain of 45 sen. This is quite commendable when one compared this stock's performance with the overall market.

Presently, Aji is trading at a PE of 7.4 times (based on last 4 quarters' EPS totaling 36 sen), or at a P/Book of 0.9 times (based on NTA per share of RM2.97 as at 30/6/2008). If the dividend remained unchanged at 15 sen for FY2009, its dividend yield is now at 5.7%. All in all, Aji is still quite attractive.

From the monthly chart below, Aji will face immediate resistance at RM2.80 & thereafter at RM3.30.


Chart: Aji's monthly chart as at August 20th (source: Quickcharts)

Based on the above, Aji could be a good long-term investment. The share price has run up a bit in the past 2 months, due to the proposed dividend of 15 sen. It would be advisable to wait for the entitlement date of this proposed dividend to lapse (on September 2nd). There is a good chance that the share price will retrace a bit thereafter.