Multico broke above its horizontal line RM1.60

Technical Breakout

Multico just broke above its horizontal line at RM1.60. With this breakout, it may revisit its high in 2007 of RM1.78.


Chart 1: Multico's daily chart as at Apr 11, 2013_12.20pm (Source: Quickcharts)


Chart 2: Multico's weekly chart as at Apr 11, 2013_12.20pm (Source: Quickcharts)

Background

Multico is involved in the manufacturing of electronics parts and accessories for the automotive industries.For more on this company, go here.

Recent Financial Result

Multico's financial performance is satisfactory in the past 3 quarters. For QE31/1/2013, Multico's net profit increased by 8% q-o-q or 56% y-o-y to RM3.4 million while revenue was mixed- down 9% q-o-q but increased by 7% y-o-y to RM27 million.


Table: Multico's last 8 quarterly results


Chart 3: Multico's last 22 quarterly results

Valuation

At RM1.67, Multico is trading at a PE of 6 times (based on last 4-quarter's EPS of 27.6 sen. For a smallcap, Multico is deemed fairly valued.

Conclusion

Based on good financial performance, reasonable valuation & bullish technical bbreakout, Multico could be a good trading BUY.

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, Multico.