Monday, November 26, 2012

UMW- improved its bottom-line

Results Update

For QE30/9/2012, UMW's net profit rose 33% q-o-q or 104% y-o-y to RM299 million while revenue was mixed- rose 7.4% y-o-y but declined 4.2% q-o-q to RM3.96 billion.

Table 1: UMW's last 8 quarterly results

The improved bottom-line was attributable to substantially better results for the Oil & Gas segment. The same can be said for the Automotive segment which continued to improve. However, the Equipment segment was mixed- better than last year but was lower compared to the immediate preceding quarter.

Table 2: UMW's segmental performance for 9-month ended 30/9/2012

Chart 1: UMW's last 22 quarterly results 


UMW (closed at RM10.08 at the end of the morning session) is now trading at a PE of 15 times (based on last 4 quarters' EPS of 68.02 sen). At that multiple, UMW is deemed fairly valued.

Technical Outlook

UMW is rising in a long-term upward channel, with support at RM7.00 and resistance at RM14.00.

Chart 2: UMW's weekly chart as at Nov 23, 2012 (Source: Tradesignum)


Based on good financial performance & positive technical outlook, UMW is still a good stock for long-term investment. Its upside potential is limited as it is fairly valued.

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, UMW.


Anonymous said...

Hi Alex

Can you comment on WTK? stock has slump down to all year low, is it worth of buying?

Alex Lu said...

Hi hng,

WTK's strong horizontal support is at RM1.00. Next is RM0.94-0.95. If this do-or-die level is also taken out, it may drop to RM0.80 & then RM0.65.