Wednesday, July 04, 2012

Luxchem's uptrend may continue

Luxchem Corporation Bhd is involved in the production of unsaturated polyester resins. It reported a net profit of RM22 million on a turnover of RM499 million for FYE31/12/2011. For QE31/3/2012, it reported a net profit of RM6.4 million on a revenue of RM129 million. Annualized EPS is about 19.56 sen. At the present price of RM1.29, Luxcham is trading at a PE of 6.6 times. 

Luxchem has broken above its "horizontal" line at RM1.20 two weeks ago. This upside breakout could send the stock to RM1.40-1.50. As such, the stock could be a trading BUY.

 Chart: Luxchem's weekly chart as at July 4, 2012_3.00pm (Source: Quickcharts)


panaceaasia said...

Luxchem's dividend yield is attractive at 6%

Alex Lu said...

Hi panaceaasia

You have a point there. Based on the dividend of 9 sen for FY2011 & its close of RM1.26, the dividend yield is about 7%.