Background
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
Valuation
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)
Conclusion
Based on satisfactory financial performance, reasonable valuation & positive technical outlook, Cepat could be a good trading BUy or even a good medium investment stock.
3 comments:
Hello Alex,
Can you advise me about IRIS 0010 please?
Hi Alex,
How about Kretam? Its cheaper than Cepat if im not mistaken.
Tx!
Hi Alex
Can you please on recent price hike of GOcean. Thx
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