Monday, August 15, 2011

Panamy- bottom-line & top-line rebounded a bit


Results Update

Panamy has just announced its results for QE30/6/2011. Its net profit increased by 28% q-o-q but declined by 3% y-o-y to RM19 million while its turnover increased by 47% q-o-q or 8% y-o-y to RM222 million. The increased sales was attributed to higher domestic sales & transfer of manufacture & sales of fans from China to Malaysia.


Table: Panamy's last 8 quarterly results



Chart 1: Panamy's last 15 quarterly results

Valuation

Panamy (closed at RM23.70-today) is now trading at a PE of 17.6 times (based on last 4 quarters' EPS of 135 sen). At this multiple, Panamy could command a PE of 18 times. As such, Panamy is nearly fully valued.

Technical Outlook

Based on the chart below, I believe Panamy's support is at the 10-week SMA line of RM21.50, which coincides with the horizontal line of RM21.00-21.50. Its resistance is the recent high of RM25.00.


Chart 2: Panamy's weekly chart as at August 8, 2011_plotted on log scale (Source: Tradesignum)

Conclusion

Based on limited upside from valuation angle, I would maintain my earlier rating for this stock, which is to sell into strength.

2 comments:

Ahmad Rozian said...

The past few days Bursa experience some turbulence, with some buying and selling opportunities.
What will the market be in the next few weeks.
Hope U can comment on the market direction.

Alex Lu said...

Hi Ahmad Rozian

I believe we have made a top & we are now in the bear rally stage, which could last for a few weeks.