Kian Joo continued its steady growth

Kian Joo is involved in the manufacture of can (both, general & aluminium can) as well as PET bottles & related plastic packaging products. The company has just announced its results for 3Q2008 ended 30/9/2008, where its turnover increased by 18.8% q-o-q or 15.2% y-o-y to RM243 million, while its net profit increased by 37.2% y-o-y but down marginally on a q-o-q basis to RM21.0 million. Kian Joo attributed its better results to higher sale revenue in its can division & higher contribution from its Vietnamese operation.

When we compared the last 4 quarters' performance against the preceding 4 quarters, we will find that Kian Joo's turnover has increased by 9.6% from RM772 million to RM846 million, while net profit has grown by 82.2% from RM37.8 million to RM68.9 million. Thus, its EPS has increased by 82.0% from 8.5 sen to 15.5 sen.

Kian Joo (closed at RM1.04 yesterday) is now trading at a PE of 6.7 times or at a Price to Book of 0.7 times. At these multiples, Kian Joo is deemed very attractive.



Kian Joo is now trading very near its strong horizontal support of RM0.95-1.00. If this support failed, its share price may drop to the next strong horizontal support of RM0.75.


Chart: Kian Joo's monthly chart as at Nov 13, 2008 (source: Quickcharts)

With its steady growth & being involved in a relatively stable industry, Kian Joo is a good defensive stock for long-term investing.