Tuesday, February 21, 2012

Evergrn poised for the next upleg?

Results Update

Evergrn has just announced its results for QE31/12/2011. Its net profit dropped 11% q-o-q to RM21.4 million while turnover rose 6% to RM296 million. Compared to the corresponding quarter last year, its net profit rose 18.5% while turnover was up 22.3%. The q-o-q increase in turnover was attributed to higher average selling price & appreciation in USD while net profit declined q-o-q due to higher cost of glue & logs.

Table: Evergrn's last 8 quarterly results

Chart 1: Evergrn's last 28 quarterly results


Evergrn (currently at RM1.03 as at 11.45am) is trading at a PE of 8.3 times (based on last 4 quarters' EPS of 12.43 sen). At this PE multiple, Evergrn is deemed fairly valued.

Technical Outlook

Evergrn is a trending stock, which is a stock that spends more time in either an uptrend or a downtrend. Evergrn rose to a recent high of RM1.12 on February 8. If it can stay above the RM1.00 mark, it may rally again. It looks like it's on the verge of entering into the next upleg. The indicators are supportive of such a move.

Chart 2: Evergrn's weekly chart as at Feb 21, 2012_10.30am (Source: Quickcharts)


Based on satisfactory financial performance, reasonable valuation & mildly positive technical outlook, Evergrn could be a good stock for medium-term investment.


chanhoo said...

Hi Alex,
Mudajaya has reached RM3.00 today.
What is Mudajaya technical outlook. What is Mudajya next resistance and intermediate downtrend?


cheer said...

HI Alex, should notion n supermx give a good buy now?

lim said...

hi alex,how with ours market now.

cheer said...

HI Alex,

Is CPO counter still a good buy base on new crude oil price?


thomas12 said...

can u comment on muh? tq