Result Update
For QE30/6/2013, Harta's net profit rose only 1% q-o-q or 18% y-o-y to RM63 million while revenue was up 3% q-o-q or 12% y-o-y to RM278 million. The q-o-q increase in revenue and profit before tax for the current quarter is basically due to increase in sales volume.
Table: Harta's last 8 quarterly results
Chart 1: Harta's last 23 quarterly results
Valuation
Harta (closed at RM6.79 yesterday) is trading at a PE of 20.6 times (based on last 4 quarters' EPS of 33 sen). At this PE multiple, Harta is deemed fully valued.
Technical Outlook
Harta is in an upward channel. Its immediate resistance is its recent high at RM6.85.
Chart 2: Harta's daily chart as at Aug 6, 2013 (Source: quickcharts)
Conclusion
Based on satisfactory financial performance & positive technical outlook, Harta remained a good stock for long-term investment. Its valuation is demanding and this may put a lid on its upside for the near term. I prefer Kossan to Harta.
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, Harta.
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