Tuesday, March 20, 2012

TGuan- the uptrend continued

Results Update

For QE31/12/2011, TGuan's net profit increased by 41% q-o-q or 8% y-o-y to RM7.7 million while turnover inched up marginally by 1% q-o-q or 3% y-oy- to RM144 million. The improved bottom-line was attributable to higher sales & better margin.

Table: TGuan's last 8 quarterly results

Chart 1: TGuan's last 27 quarterly results


TGuan (closed at RM1.46 today) is now trading at a PE of 5.7 times (based on last 4 quarters' EPS of 25.85 sen). At this PE, TGuan is deemed fairly attractive.

Technical Outlook

TGuan is in a slow & steady uptrend. Over the past 2 months, the stock appeared to be trapped in a flag formation, with breakout at RM1.40. Today, the stock has broken above this flag formation and this could signal the continuation of its prior uptrend. The next resistance would be at RM1.60.

Chart 2: TGuan's daily chart as at Mar 20, 2012 (Source: Quickcharts)

Chart 3: TGuan's weekly chart as at Mar 19, 2012 (Source: Quickcharts)


Based on good financial performance, attractive valuation & positive technical outlook, TGuan could be a good stock for a medium-term investment.

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