For QE28/2/2013, Zhulian's net profit dropped 5.0% q-o-q but rose 4.8% y-o-y to RM30 million while revenue declined by 7.2% q-o-q or 2.8% y-o-y to RM109 million. The decline in bottom-line q-o-q was attributable to lower operating profit from RM24.1 million for QE30/11/2012 to RM22.7 million for QE28/2/2013 (which is in turn due to a slight drop in domestic sales) and a decline in share of profit of equity-accounted investee (net tax) from RM13.3 million for QE30/11/2012 to RM12.6 million for QE28/2/2013.
Table: Zhulian's last 8 quarterly results
Chart 1: Zhulian's last 26 quarterly results
Valuation
Zhulian (closed at RM2.89 last Friday) is now trading a PE of 11.2 times (based on last 4 quarters of 25.8 sen). Zhulian is deemed attractive based on earning CAGR of 15-20%.
Technical Outlook
Zhulian is in an uptrend but the share price is capped by the recent high of RM2.90. Can the stock surpass this resistance soon? We will be wait & see.
Chart 2: Zhulian's weekly chart as at April 19, 2013 (Source: quickcharts)
Conclusion
Based on good financial performance, attractive valuation & still-positive technical outlook, Zhulian is still a good stock for long-term investment. However, the share price performance will be capped for the near term until it has surpassed its recent high of RM2.90.
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, Zhulian.
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