Thursday, June 27, 2013
Apollo- top-line & bottom-line slid
For QE30/4/2013, Apollo's net profit dropped 23% q-o-q or 18% y-o-y to RM7 million while revenue was lower by 4% q-o-q or 3% y-o-y to RM55 million. Top-line & bottom-line dropped due to lower demand from both local and export markets as compared to the festive months in QE31/1/2013. The lower revenue and higher operating cost had resulted in a decrease in the current quarter’s profit.
Table 1: Apollo's last 8 quarterly results
Chart 2: Apollo's last 23 quarterly results
Apollo (closed at RM4.05 yesterday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 40 sen). For a consumer stock, Apollo's valuation is deemed undemanding.
Apollo is in a gradual uptrend which accelerated over the past 6 months. This sudden acceleration may taper off and the stock may move in a sideway manner for a while. It shoudl however find good support at the psychological RM4.00 level.
Chart 2: Apollo's weekly chart as at June 27, 2013_10.00am (Source: Quickcharts)
Despite poorer financial performance, Apollo is still an attractive stock with positive technical outlook. As such,, Apollo remained a good stock for a 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, Apollo.