Century Logistics has just announced its results for 2Q2009 ended 30/6/2009, which shows a strong rebound in its top-line & bottom-line. Its net profit increased by 282% q-o-q or 57% y-o-y to RM3.9 million while turnover increased by 18.6% q-o-q or 37.7% y-o-y to RM47 million. See Table 1 & Chart 1 below.
Table 1: Century's 8 quarterly results
Chart 1: Century's 13 quarterly results
Century (closed at RM1.73 yesterday) is now trading at a trailing PE of 15 times (based on last 4 quarters' EPS of 11.5 sen) or 0.9 times its Book Value of RM1.92 as at 30/6/2009. At these multiples, I believe Century is nearing its fair value of about RM1.80-2.00.
From Chart 2 below, we can see that Century will encounter strong resistance at the horizontal line of about RM1.90-95 and the psychological RM2.00 mark. On the other hand, Century has strong support at RM1.60.
Chart 2: Century's weekly chart as at Aug 17, 2009 (Source: Quickcharts)
After a strong rally that brought this stock near to its fair value, I think it is time to track it for the purpose of profit-taking. Nevertheless, if the price of Century were to drop back to RM1.60, you can accumulate it as it's on the road to recovery.
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