Monday, June 03, 2013
CCM- top-line & bottom-line continued to slide
For QE31/3/2013, CCM's net profit dropped 76% q-o-q or 35% y-o-y to RM4.4 million while revenue dropped 24% q-o-q or 19% y-o-y to RM288 million. Revenue dropped q-o-q due to lower revenue contribution from the Chemicals and Fertilizers Divisions. Pre-tax profit decreased by 41% q-o-q due to lower profit contribution from all the Divisions. In addition, the preceding quarter’s profit before tax included an amount of RM7.4 million as fair value change on investment properties.
Table: CCM's last 8 quarterly results
Chart 1: CCM's last 29 quarterly results
CCM (closed at RM1.22 last Friday) is now trading at a PE of 15 times (based on last 4 quarters' EPS of 8.2 sen). For a company with continuous deterioration in its earning, CCM does not deserve a PE of 15 times.
CCM is still in a downtrend line, with resistance at RM1.20-1.25. Its immediate support is at the horizontal line at RM1.10.
Chart 2: CCM's weekly chart as at May 31, 2013 (Source: Quickcharts)
Based on challenging operating environment, unexciting financial performance, demanding valuation & negative technical outlook, CCM is rated at a SELL.
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, CCM.