Efficen's top-line & bottom-line improved slightly in 1Q2009

Efficen has just announced its results for 1Q2009 ended 31/3/2009. Its net profit dropped 3.5% y-o-y to RM4.2 million on the back of a 7.9%-increase in turnover of RM16.4 million. Compared to the immediate preceding quarter, 4Q2008, its net profit actually increased by 23.5% while turnover was up 5.6%. The q-o-q improvement in the turnover & net profit was due to increase in data printing volume from existing customers.



Efficen (closed at RM0.14 yesterday) is now trading at a trailing PE of 5.8 times. At this multiple, Efficen is deemed attractive, given its stable operating environment. However, its share price may continue to trade at this level due to the lack of liquidity in the stock.

Like most penny stocks, Efficen has rallied upward in the past few weeks. Its immediate horizontal resistance is at RM0.18 & RM0.20. Presently, it is resting at the support of RM0.14.


Chart: Efficen's weekly chart as at 20/5/2009 (Source: Quickcharts)

Based on undemanding valuation & improving technical outlook, Efficen is still a good stock for long-term investment.