Uchitec has just broken above its horizontal line at RM1.30. In April, it broke above the strong horizontal line at RM1.15. With the latest upside breakout, Uchitec's upleg could well be under way.
Chart 1: Uchitec's daily chart as at July 26, 2013_2.45pm (Source: Quickcharts)
Recent Financial Result
Table 1: Uchitec's last 8 quarterly results
Chart 2: Uchitec's last 30 quarterly results
Uchitec (closed at RM1.35 as at 2:45pm) is now trading at a PE of 15 times (based on annualized EPS of 9.2 sen). While it has been acknowledged as a dividend stock in the past - due to its high dividend payout of 12 sen or a DY of 9% - that may change if the tax rate stays high due to the termination of the Pioneer Status. At the present price, Uchitec is deemed fairly valued. The approval of Pioneer Status for its new products may be a catalyst for a re-rating of the stock.
Despite reasonably attractive valuation, good financial performance (albeit the termination of Pioneer Status and the ensuing jump in the tax rate) and the positive technical breakout, Uchitec could be an interesting stock for a trading BUY.
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, Uchitec.