Results Update
TSM released its results for QE31/1/2011 yesterday. It is a very good set of results as it incorporates the contribution from its newly-acquired subsidiary, Kenseisha into its books). Its net profit increased by 56% q-o-q or 66% y-o-y to RM12.7 million while turnover increased by 4% q-o-q or 50% y-o-y to RM109 million.
Table 1: TSM's last 8 quarterly results
Chart 1: TSM's last 27 quarterly results
Financial Position
As at 31/1/2011, TSM's financial position is deemed very satisfactory. Its current ratio stood at 3.2 times while debts to equity stood at 0.1 time only.
Valuation
TSM (closed at RM1.90 today) is now trading at a PE of 6.3 times (based on last 4 quarters' EPS of 30 sen). At this multiple, TSM is deemed fairly attractive. With the steady growth in its bottom-line, I believe TSM could command a PE multiple of 9-10 times.
Technical Outlook
TSM has just broken above its short-term downtrend line at RM1.85 as well as the horizontal resistance at RM1.90. Its immediate resistance is at the horizontal line at RM2.08-2.10.
Chart 2: TSM's daily chart as at Apr 1, 2011_9.30am (Source: Quickcharts)
We can see that TSM's long-term uptrend line support is at RM1.65.
Chart 3: TSM's weekly chart as at Apr 1, 2011_9.30am (Source: Quickcharts)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, TSM is a good stock for long-term investment.
4 comments:
can comment on TDM fundemental and technical analyse?
Alex,
How you see Mahsing & Kretam nearterm technical outlook? Please advise the resistance level.
Hi cheeseong
The near term technical outlook for:
1. Mahsing
It has broken above its medium-term downtrend line at RM2.00-2.02. Its next resistance is at RM2.14-2.15 & then at RM2.20-2.22.
2. Kretam
It has also similarly broken above its medium-term downtrend line at RM2.45 as well as the strong horizontal line at RM2.55. Its next resistance is at RM2.70-2.72 & then at RM2.80-2.82.
Hi INVESTMENT IN EQUITY
TDM has just broken above its medium-term downtrend line at RM32.80. It is now testing its horizontal line at RM2.90. If it can surpass that level, its next resistance levels are RM3.00 & RM3.20.
Visit Bursa Malaysia website for the company's financial results.
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