For QE30/9/2012, Kianjoo's net profit increased by 53% q-o-q but declined by 1% y-o-y to RM28 million while revenue dropped by 8% q-o-q but rose by 1% y-o-y to RM280 million. The increased net profit q-o-q was attributable to the gain on disposal of a subsidiary of RM8.1 million. If this one-off item is excluded, the net profit only increased by 8.5% q-o-q & dropped by 30% y-o-y to about RM20 million.
Table: Kianjoo's last 8 quarterly results
Chart 1: Kianjoo's last 24 quarterly results
Valuation
Kianjoo (closed at RM2.18 yesterday) is now trading at a PE of 12 times (based on last 4 quarters' EPS of 18 sen- adjusted for one-off gain). At this multiple, Kianjoo is deemed fully valued.
Technical Outlook
Kianjoo broke its strong horizontal support at RM2.25 yesterday. Its next support will be the psychological RM2.00 mark which coincides with the uptrend line, S-S1.
Chart 2: Kianjoo's monthly chart as at Nov 22, 2012_2.45pm (Source: Tradesignum)
Conclusion
Based on full valuation & weaker technical outlook, Kianjoo is rated either a HOLD or a trading SELL.
Note:
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, Kianjoo.
6 comments:
How about Canone ? It looks very weak also recently.
Tx for ur precious opinion!
Hi luckystock2
Canone broke its uptrend line at RM2.22 & the horizontal support at RM2.20. Its next support is the psychological RM2.00 mark.
Alex,
The other sizable player in the tin can biz, namely Johor Tin also seems to be struggling.Admittedly, Johotin had a rights issue plus free warrants exercise recently but even allowing for that , they have come off 20% of its theoretical price and now trading around RM1.50.
My question is as the world tin price continues to drop, you would think that this is good news for the tin can manufacturers,no?
So why are their share price languishing?A fall in demand perhaps?
Thks.
Tin Man
Hi Unknown,
The decline in tin prices would bring some relief to can makers. However, these days where production capacity in many sectors outstrip demand, the buyers would quickly seize on the lower price of raw material as an excuse to ask for lower prices for their intermediary goods.
Hi Alex ,
Can you comment on Prtasco technical outlook ?
Tx!
Hi luckystock2
Prtasco broke above the horizontal resistance at RM0.95. If it can also break above the strong horizontal resistance at RM1.05, this stock may charge up to RM1.50.
Please check on its fundamental performance.
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