This is a personal weblog, reflecting my personal views and not the views of anyone or any organization, which I may be affiliated to. All information provided here, including recommendations (if any), should be treated for informational purposes only. The author should not be held liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein.
Thursday, July 18, 2013
Zhulian- bottom-line continued to rise
Result Update
For QE31/5/2013, Zhulian's net profit increased 28% q-o-q or 30% y-o-y to RM38 million while revenue dropped 2% q-o-q or 4% y-o-y to RM106 million. Top-line declined due to drop in local sales. Nevertheless, bottom-line improved due to the increase in share of profit of equity-accounted investee, which had more than off-set the decline in operating result (due to lower sales).
Table: Zhulian's last 8 quarterly results
Chart 1: Zhulian's last 27 quarterly results
Valuation
Zhulian (closed at RM3.10 yesterday) is now trading a PE of 11 times (based on last 4 quarters of 27.7 sen). Its PEG ratio is about 0.7 time (based on earning CAGR of at least 15%). As such, Zhulian is still deemed attractive.
Technical Outlook
Zhulian's uptrend continued after it broke above the horizontal line at RM2.90 May. ts immediate resisatnce is at the recent high of RM3.28-3.30. Its immedaite support is at the psychological RM3.00 level, which coincides with the uptrend line, S1-S1.
Chart 2: Zhulian's daily chart as at July 17, 2013 (Source: quickcharts)
Chart 3: Zhulian's weekly chart as at July 17, 2013 (Source: quickcharts)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Zhulian is still a good stock for long-term investment.
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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