WTK's top-line & bottom-line improved further

WTK has announced its results for 3Q2008 ended 30/9/2008, where its net profit increased by 35.7% q-o-q or 94.5% y-o-y to RM25.9 million while its turnover increased by 7.9% q-o-q or 46.2% y-o-y to RM244 million. The increased turnover & profit was attributable to continued improvement in timber prices.



WTK (closed at RM1.05 yesterday) is now trading at a PE of 8.1 times (based on last 4 quarters' EPS totaling 13 sen) or a Price to Book of 0.43 times (based on NTA per share of RM2.47 as at 30/9/2008). At these multiples, WTK may not appear cheap. If the recovery in timber prices can sustain, WTK's earning can improve further.

As noted in another post, WTK's share price has broken below the all-time 'low' of RM1.28-30 in the middle of last month. Since then, the share price has been hovering between RM1.00-1.12.


Chart 1: WTK's monthly chart as at Nov 27, 2008 (source: Quickcharts)


Chart 2: WTK's daily chart as at Nov 27, 2008 (source: Quickcharts)

Based on steady improvement in its financial performance, I believe WTK is a good stock for long-term investing.