Harta has just announced its results for QE30/9/2010. Its net profit increased by 13.6% q-o-q or 42.3% y-o-y to RM47.1 million while its turnover 8.4% q-o-q or 37.0% y-o-y to RM184 million. The better bottom-line was attributable to increased demand for nitrile glove, effective cost control & recognition of fair value gain in financial derivative of RM1.6 million.
Table: Harta's last 8 quarterly results
Chart 1: Harta's last 16 quarterly results
Valuation
Harta (closed at RM5.53 yesterday) is now trading at a trailing PE of 12 times (based on last 4 quarters' EPS of 47 sen). At this multiple, Harta is deemed undemanding.
Technical Outlook
Harta is still consolidating, with upside capped by the strong horizontal resistance at RM5.60-5.66. However we can see that the MACD indicator has hooked up, which could be signaling a potential re-test of the RM5.60-5.66 level.
Chart 2: Harta's weekly chart as at Nov 9, 2010 (Source: Quickcharts)
Conclusion
Based on good financial performance & undemanding valuation, Harta may be good for long-term investment. However, the stock's upside is capped at RM5.60-5.66. If it can break above that level, Harta could become a good trading BUY.
10 comments:
Dear Alex,
May I know what is the better time to buy Maxis?
Dear Alex,
I'd appreciate if you could share the technical outlook on Century Logistics?
Thanks!
dear Alex
kindly share something about Evergreen..it look interesting
Hi Stephen Pui
Maxis's growth is slow and dependent on non-voice or data business as well as greater uptake of broadband business. For QE30/6/2010. Maxis's turnover increased by 22% y-o-y but was unchanged when compared to QE31/3/2010. It recorded a net profit of RM532 mil for QE30/6/2010 which was lower than the net profit of RM552 mil for QE31/3/2010.
At RM5.30, Maxis is trading at a current PE of 18 times. At this multiple, Maxis is fully valued. As such, I see unexciting prospect for Maxis for the near term.
Hi rabaman
Century is in an uptrend line with support at RM1.65. If it can surpass its horizontal resistance at RM1.74-1.75, it may continue with its uptrend.
Hi Alex,
Current price PBA of 0.91 is a safe buy ?
Hi kiwi
Bad news for Evergreen. The stock broke its uptrend line at RM1.55 in early October. Its next support is at RM1.45 & then at RM1.30 & RM1.20. Based on technical consideration, Evergreen is a SELL.
Hi Alex, how do you find Adventa compared to Harta? The stock is taking a beating today!
Hi Jimmy Yeoh
It looks like PBA failed to stay above the breakout level (above its long-term downtrend line) of RM1.00. As such, its technical outlook is again unexciting... until favorable financial results from the higher water tariff flow through. For now, we can expect the stock to find support at horizontal lines RM0.90 & RM0.80.
I think this stock is worth a buy at RM0.80-0.90.
Hi AlexP
You ask a very tough question. That's why I sat on your comment for a while. It's like asking which is better- Toyota or BMW?
Based on gut feeling, I prefer Adventa to Harta because I am not too comfortable with the rubber glove sector. Harta, with its higher nitrile gloves output, may do better than Adventa in the examination gloves market but the latter- a big producer of surgical glove- may stand its ground equally well. Since Adventa is nearly at its low, I feel it is a safer bet than Harta which is at its peak.
This is not an answer based on technical or fundamental analysis which you can obtain from my blog or some simple searching on your part. Good luck.
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