Asiafle's top-line & bottom-line declined

Asiafle has announced its results for 2Q2009, where its net profit dropped by 70.0% q-o-q or 34.8% y-o-y to RM6.5 million. Its turnover of RM72.5 million was higher than previous year's turnover of RM44.1 million, but lower than the preceding quarter's turnover of RM84.8 million. The poorer results was attributable to weaker sales & lower margin.



Asiafle's share price is still in a long-term uptrend, with support at RM3.80-90.


Chart: Asiafle's monthly chart as at Nov 28, 2008 (source: Quickcharts)

Based on poorer results, one should avoid Asiafle for now. Those who are technically inclined may try to trade this stock when it hit the long-term line support, but this should strictly be a trading BUY. If the uptrend line is violated, one should quickly dispose off any long position.