Monday, February 20, 2012

Cepat- next upleg coming


Cepatwawasan Group Bhd ('Cepat') is involved in oil palm cultivation and milling of oil palm products.

Recent Financial Results

For QE30/9/2011, Cepat's net profit dropped 4% q-o-q but rose 50% y-o-y to RM13 million while turnover was similar down marginally on q-o-q but rose 41% y-o-y to RM79 million. The decline on q-o-q basis was due to lower prices for CPO & Palm Kernel by 8% & 26% respectively. FFB output rose by 5%.

Table: Cepat's last 8 quarterly results

Chart 1: Cepat's last 20 quarterly results


Cepat (at RM1.17 now) is trading at a PE of 8.6 times (based on adjusted last 4 quraters' EPS of 13.64 sen). At this PE, Cepat is deemed attractive.

Technical Outlook

Cepat broke above its strong horizontal resistance at RM1.04 in January. That coincided with the 1-for-2 bonus issue. After the bonus issue, the stock tried to rise but was capped at RM1.15. This morning, it broke above this resistance of RM1.15. I believe the target price for the next upleg will be RM1.40-1.50.

Chart 2: Cepat's weekly chart as at Feb 20, 2012_9.30am (Source: Quickcharts)


Based on satisfactory financial performance, reasonable valuation & positive technical outlook, Cepat could be a good trading BUy or even a good medium investment stock.


Stephen said...

Hello Alex,

Can you advise me about IRIS 0010 please?

luckystock2 said...

Hi Alex,
How about Kretam? Its cheaper than Cepat if im not mistaken.

Dom said...

Hi Alex

Can you please on recent price hike of GOcean. Thx