Wednesday, August 07, 2013
Harta- Top-line & bottom-line inched up marginally
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
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.
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)
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.
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.