Tuesday, November 26, 2013
Unimech- may have a bullish breakout
Unimech group designs, fabricates, installs, and maintains boilers, combustion equipment, and piping systems. It also manufactures rubber flexible joint and mould products, pressure gauges and thermometer, and metal stamped parts.
For FYE31/12/2012, it reported a net profit of RM22 million (or, a pre-tax profit of RM34 million) on a revenue of RM220 million (here). For 1H2013, it reported a net profit of RM10.8 million (or, a pre-tax profit of RM12.6 million) on a revenue of RM108 million (here). Annualized EPS for FY2013 is 18 sen. As such, the stock is now trading at a PE of 9.5 times (based on share price of RM1.71 now)
The stock has broken above the ascending triangle at RM1.60, albeit on very thin volume. The warrant- with exercise price of RM1.50 & expiring in September 2018 (here)- has surpassed its recent high of RM0.33.
Chart 1: Unimech's daily chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)
Chart 2: Unimech's weekly chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)
Chart 3: Unimech-WA's daily chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)
Based on technical breakout, Unimech & its warrant could be 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, Unimech.