Wednesday, July 31, 2013

PWRoot- top-line & bottom-line continued to grow

Results Update

For QE31/5/2013, PWRoot's net profit increased 11% q-o-q or 28% y-o-y to RM9.9 million on the back of similar increase in revenue: 16% q-o-q or 24% y-o-y to RM88 million. The Improved top-line and bottom-line was attributed to FMCG sales.

Table: PWRoot's last 8 quarterly results

Chart 1: PWRoot's last 25 quarterly results


PWRoot (closed at RM2.07 yesterday) is now trading at a PE of 17 times (based on last 4 quarters' EPS of  12.10 sen). PWRoot's earning has been growing at an average rate of 70% for the past 2 years. Thus, its PEG ratio is about 0.3 time only. As such, PWRoot is deemed attractive.

Technical outlook

PWRoot is in an uptrend after breaking above its horizontal line at RM0.60. Its immediate support is at the horizontal line at RM2.00.

Chart 2: PWRoot's weekly chart as at July 30, 2013 (Source: quickcharts)


Based on good financial performance, attractive valuation & positive technical outlook, PWRoot remains a good stock for 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, PWRoot.

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