For QE31/3/2011, Tongher's net profit increased by 88% q-o-q or 247% y-o-y to RM13 million while turnover increased by 14% q-o-q or 143% y-o-y to RM143 million. The improvement in top-line & bottom-line was attributable to overall improvement in sales & the consolidation of the accounts of the recently-acquired subsidiary, Tong Herr Aluminium Industries Sdn Bhd.
Table: Tongher's last 8 quarterly results
Chart 1: Tongher's past 26 quarterly results
Valuation
Tongher (closed at RM2.64 at end of morning session) is now trading at a PE of 6.5 times (based on annualized EPS of 40.92 sen). At this multiple, Tongher is deemed quite attractive.
Technical Outlook
Tongher has broken above its triangle at RM2.55 today. With this breakout, Tongher may test its horizontal resistance at RM2.80 & thereafter RM3.40.
Chart 2: Tongher's daily chart as at May 31, 2011_11.45am (Source: Quickcharts)
Chart 3: Tongher's monthly chart as at May 3, 2011 (Source: Tradesignum)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Tongher is a good stock for medium-term investment.
No comments:
Post a Comment