Tuesday, August 28, 2012
SMRTech- the bottom-line sored
For QE30/6/2012, SMRTech's net profit increased by 186% q-o-q or 103% y-o-y to RM4.2 million while revenue increased by 70% q-o-q or 95% y-o-y to RM20.3 million. The improved performance was due to special projects with Pembangunan Sumber Manusia Bhd, Ministry of Human Resources of Malaysia and Petro Rabigh of Saudi Arabis.
Table 1: SMRTech's last 8 quarterly results
Chart 1: SMRTech's last 17 quarterly results
SMRTech (closed at RM0.26 today) is trading at a gross PE of 3.8 times (based on last 4 quarters' gross EPS of 6.83 sen). At this PE multiple, SMRTech is deemed attractive.
SMRTech is still in an uptrend. The uptrend support could be the 40-week SMA line at RM0.21 or the uptrend line (SS) at RM0.17. I believe the psychological & horizontal support at RM0.20 will be a very support for this stock.
Chart 2: SMRTech's weekly chart as at Aug 27, 2012 (Source: Tradesignum)
Based on good financial performance, attractive valuation & positive technical outlook, SMRtech remained a good stock for long-term investment.
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, SMRTech.