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Wednesday, July 31, 2013

Gtronic- Top-line & bottom-line continue to rise

Result Update

For QE30/6/2013, Gtronic's net profit increased by 39% q-o-q or 46% y-o-y to RM14.1 million while its revenue increased by 10% q-o-q or 23% y-o-y to RM85 million. the company attributed its improved top-line and bottom-line to higher volume loadings from customers, better economy of scale, and improved productivity improvement & cost control program.


Table 1: Gtronic's last 8 quarterly results


Chart 1: Gtronic's last 25 quarterly results
  
Valuation

Gtronic (closed at RM2.60 yesterday) is now trading at a PE of 14 times (based on last 4 quarters' EPS of 18 sen). At that PE multiple, Gtronic is deemed fairly valued.

Technical Outlook

Gtronic has been in a steady uptrend after breaking above its strong horizontal line at RM1.30 in July 2012. The stock is presently trading in overbought territory and could face short-term profit-taking.


Chart 1: Gtronic's daily chart as at July 30, 2013 (Source: Quickcharts)

Conclusion

Based on good financial performance, Gtronic could be a good stock for long-term investment. Its upside potential is limited as it is trading at fair valuation.

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, Gtronic.


PWRoot- top-line & bottom-line continued to grow

Results Update

For QE31/5/2013, PWRoot's net profit increased 11% q-o-q or 28% y-o-y to RM9.9 million on the back of similar increase in revenue: 16% q-o-q or 24% y-o-y to RM88 million. The Improved top-line and bottom-line was attributed to FMCG sales.


Table: PWRoot's last 8 quarterly results


Chart 1: PWRoot's last 25 quarterly results

Valuation

PWRoot (closed at RM2.07 yesterday) is now trading at a PE of 17 times (based on last 4 quarters' EPS of  12.10 sen). PWRoot's earning has been growing at an average rate of 70% for the past 2 years. Thus, its PEG ratio is about 0.3 time only. As such, PWRoot is deemed attractive.

Technical outlook

PWRoot is in an uptrend after breaking above its horizontal line at RM0.60. Its immediate support is at the horizontal line at RM2.00.


Chart 2: PWRoot's weekly chart as at July 30, 2013 (Source: quickcharts)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, PWRoot remains 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, PWRoot.

Tuesday, July 30, 2013

Spritzr- bottom-line continued to grow


Result Update

For QE31/5/2013, Spritzr's net profit jumped 19% q-o-q or 195% y-o-y to RM5.9 million while revenue was mixed- down 12% q-o-q but rose 8% y-o-y to RM50 million. The company attributed "the increase in profit in the current quarter to sales of higher margin products as well as better selling prices for products sold for the 13th General Election. The improvement in operations efficiency and productivity also contributed to the better results recorded in the current quarter."


Table: Spritzr's last 8 quarterly results


Chart 1: Spritzr's last 28 quarterly results

Valuation

Spritzr (closed at RM1.82 yesterday) is now trading at a PE of 12.4 times (based on last 4 quarters' EPS of 14.69 sen). At this PE multiple, Spritzr is still deemed attractive.

Technical Outlook

Spritzr rallied after breaking above the strong horizontal line at RM1.15-1.20. The present rally has put the stock at an oversold position, setting the stage for a near-term correction.


Chart 3: Spritzr's weekly chart as at July 30, 2013_12:30pm (Source: quickcharts)
 
Conclusion

Based on good financial performance & still attractive valuation, Spritzr is a good stock for long-term investment. However, I expect short-term profit-taking activities to cap its upside at RM1.90-2.00.

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, Spritzr.

GENM may have an upside breakout

Recently, GENM has been at the receiving end of some positive news flow after its has announced its plan to spend RM3 billion to refurbish Resort World at Genting Highland. The latest news is the announcement of its tie-up with Twentieth Century Fox to build the world's first Twentieth Century Fox Theme Park to replace the old theme park at Resort World at Genting Highlands at a cost of RM400 million.

The effect of these announcement is that the share price has finally managed to breach the strong resistance at RM4.00. The indicators are still weak, with ADX hardly inching higher. The weak indicators coupled with the poor overall market sentiment would likely put a brake on the potential of this breakout. The last time GENM had an upside breakout of a strong horizontal resistance was in July 2010 where it rose from RM2.70 to RM3.40. Would this present breakout lead to a similar gain in price? Or, would it be capped by the 2007 high of RM4.20? We will have to wait & see.

Based on technical consideration, GENM could be a trading BUY. However, you need to exercise careful discretion given the present weakness in the overall market.


Chart 1: GENM's weekly chart as at July 30, 2013_11.45am (Source: Quickcharts)


Chart 2: GENM's monthly chart as at July 30, 2013_11.45am (Source: Quickcharts)

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, GenM.

Monday, July 29, 2013

Market Outlook as at July 29, 2013


FBMKLCI dropped 7 points to 1800 as at 11.55am this morning. Any further decline will push the FBMKLCI below the 1800 psychological level. This could bring forth more selling and profit-taking. If we look at all the four charts below- FBMKLCI, FBM70, FBMScap & FBMFLG- one thing will become very clear. The four indices have been rising while the MACD & RSI indicators have shown a negatice divergence. This could signal a temporary top in the market. If that scenario panned out, the market might pull back to test the medium-term uptrend line, SS in all four indices. If these medium-term uptrend lines are violated, the indices could correct to the next support levels at 1700 and 1600.

So, it is critical that we watch the indices closely for the next few sessions. A break of the immediate support (example: FBMKLCI violating the 1800 psychological level) could send the market into a significant correction.



Chart 1: FBMKLCI's daily chart as at July 29, 2013_11.55am (Source: Quickcharts)


Chart 2: FBM70's daily chart as at July 29, 2013_11.55am (Source: Quickcharts)


Chart 3: FBMScap's daily chart as at July 29, 2013_11.55am (Source: Quickcharts)


Chart 4: FBMFLG's daily chart as at July 29, 2013_11.55am (Source: Quickcharts)

Friday, July 26, 2013

Uchitec- next upleg may have started


Technical Outlook

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

Uchitec QL's net profit took a dive in QE31/3/2013 due to the expiry of the Pioneer Status for its subsidiary, Uchi Optoelectronic (M) SB on Dec 31, 2012. It has applied for Pioneer Status for its new products in September 2012 and it is still awaiting the outcome of that application.


Table 1: Uchitec's last 8 quarterly results


Chart 2: Uchitec's last 30 quarterly results

Valuation

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.

Conclusion

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.

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, Uchitec.

QL- trading at all-time high!


Technical Outlook

QL broke above its horizontal line at RM3.40 on July 15. It traded around the RM3.50 level for the past 6 days and yesterday it tested the underside of the violated uptrend line, SS. For QL to commence its uptrend, it must overcome that resistance. If QL can do that, its technical outlook would turn bullish since it is trading at all-time high.


Chart 1: QL's daily chart as at July 24, 2013 (Source: Quickcharts)


Chart 2: QL's monthly chart as at July 24, 2013 (Source: Quickcharts)

Recent Financial Result

From the table and chart below, we can see that QL's top-line has been rising but its bottom-line has been flattish due to declining profit margin. In QE31/3/2013, QL's pre-tax profit inched up due to higher pre-tax profit form its Integrated Livestock Farming division (which rose from RM10 million to RM21 million) while its Marine Products Manufacturing division suffered a drop in pretax profit (from RM26 million to RM17 million). The Palm Oil Activities division also slipped slightly (from RM5 million to RM4 million).


Table 1: QL's last 8 quarterly results


Chart 3; QL's last 20 quarterly results

Valuation

QL (closed at RM3.58 yesterday) is now trading at a PE of 22 times (based on last 4 quarters' EPS of 16 sen). At this PE multiple, QL is fully valued.

Conclusion

Despite high valuation & poorer financial performance, QL's share price has rallied in the past 3 weeks to a new all-time high. Technically speaking, the stock is poised to go higher provided it can overtake the violated uptrend line at RM3.60. Can it? We will have to wait & see.

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, QL.

Thursday, July 25, 2013

Konsort- coming up against another strong resistance!


Konsort broke above its strong horizontal resistance at RM1.10 on July 18. In a short 5 days, the stock has run up to its next strong horizontal resistance at RM1.35. This is also the upper boundary of an upward channel that has been guiding the share higher since mid-2010. Unless there is a breakout above RM1.35, Konsort's sharp rally is due for some profit-taking.






Chart 1: Konsort's daily chart as at July 25, 2013_3.15pm (Source: Quickcharts)


Chart 2: Konsort's weekly chart as at July 25, 2013_3.15pm (Source: Quickcharts)

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, Konsort.

Haio- uptrend to continue

Haio broke above its recent high at RM2.77 yesterday. With this breakout, Haio is likely to continue with its prior uptrend. Its likely target will be RM3.00.

Based on technical consideration, Haio could be a good trading BUY.


Chart: KKB's daily chart as at July 24, 2013 (Source: Quickcharts)

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, Haio.

Wednesday, July 24, 2013

MHB- coming up to its downtrend line





MHB has recovered very well after it hit a low of RM3.05 on May 31. However, it will be coming up against strong resistance at RM4.45-4.50. The resistance will come from the downtrend line, RR and the horizontal line at RM4.50. Can it break through this resistance? We will wait & see.

Based on technical consideration, MHB could be a trading SELL as it approaches the RM4.45-4.50 level.


Chart: MHB's daily chart as at July 23, 2013_4.20pm (Source: Quickcharts)

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, MHB.

BJFood- uptrend to continue

BJFood has just broken above its horizontal resistance at RM1.80. With this breakout, the stock may continue with its prior uptrend. Its immediate resistance would be RM2.00 & likely target will be RM2.20.

Based on technical consideration, BJFood could be a good trading BUY.


Chart: BJFood's daily chart as at July 24, 2013_4.00pm (Source: Quickcharts)

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, BJFood.



KKB may have a breakout

KKB has just broken above its recent high at RM2.12. The target for this move maybe RM2.40-2.50.

Based on technical consideration, KKB could be a good trading BUY.


Chart: KKB's daily chart as at July 24, 2013_4.00pm (Source: Quickcharts)

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, KKB

Tuesday, July 23, 2013

TMCLife- benefitting from healthcare play


Background

TMCLife Sciences Bhd ("TMCLife') is essentially involved in the operation of a 180-bedded medical centre that provides complete services for fertility, women & children health. That medical centre is known as Tropicana Medical Centre, Kota Damansara.

Recent Financial Results

TMCLife's financial performance continued to improve due to the operation of the medical centre. However, the latest result for QE31/5/2013 showed a drop in net profit when compared to the earlier 3 quarters because it does not include any exceptional gain from the disposal of assets or interest in Stemtech International & other subsidiaries.


Table: TMCLife's last 9 quarterly results


Chart 1: TMCLife's last 9 quarterly results

Valuation

TMCLife (closed at RM0.46 yesterday) is now trading at a PE of 96 times (based on annualized EPS of 0.48 sen). A report by NetResearch Asia (here) put the EPS for FY2013 at 1.3 sen. Based on this, TMCLife's forward PE is about 35 times. While this looks expensive, it is deemed acceptable for a start-up venture.

Technical Outlook

TMCLife broke above its downtrend line at RM0.32 in October 2012. Since the breakout, the share price has inching higher in an intermediate uptrend line, SS. Its upside has however been capped by the horizontal line at RM0.42-0.43. The stock broke above that resistance yesterday. Its next resistance would be at RM0.47 & then at RM0.51.


Chart 2: TMCLIfe's  daily chart as at July 22, 2013 (Source: quickcharts)


Chart 3: TMCLIfe's monthly chart as at July 22, 2013 (Source: quickcharts)

Conclusion

Based on improving financial performance & positive technical outlook, TMCLife could still a good stock for trading BUY. Its valuation is understanding high for a start-up but it may benefit from the long-term trend of higher spending on healthcare. 

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, TMCLife.

Friday, July 19, 2013

Finance index has a breakout


Finance index broke above the 17000 level this week (see Chart 1). This breakout could signal the rise of two heavy weight stocks- Maybank & CIMB- which had lagged behind more agile mid-cap & small-cap banking stocks, such as AMMB, AFG & Affin.

From Chart 2 & 3, we can see that Maybank has just broken above the horizontal resistance (and recent high) at RM10.50 while CIMB is now pressing against the horizontal resistance at RM8.50.

Based on technical consideration, Maybank could be a good trading BUY. CIMB may follow suit.



Chart 1: Finance's weekly chart as at July 19, 2013_10.30am (Source: quickcharts)


Chart 2: Maybank's weekly chart as at July 19, 2013_10.00am (Source: quickcharts)


Chart 3: CIMB's weekly chart as at July 19, 2013_10.00am (Source: quickcharts)

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, Maybank & CIMB.

Maxis- rides again!

The appointment of Morten Lundal - the former Digi.com's CEO - as the new CEO of Maxis has finally out to rest some concern in the market about the direction and operation of Maxis. The stock got a good lift and broke above the horizontal resistance at RM6.90 as well as the psychological RM7.00 level. With this double breakout, Maxis is set to continue with its prior uptrend. The short-term target for this move is RM7.40.

Based on technical consideration only, Maxis could be a good trading BUY.


Chart 1: Maxis's daily chart as at July 18, 2013 (Source: Quickcharts)


Chart 2: Maxis's weekly chart as at July 18, 2013 (Source: Quickcharts)

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, Maxis.

Tenaga- all engines firing up!

Result Update

For QE31/5/2013, Tenaga's net profit increased 34% q-o-q or 154% y-o-y to RM1.71 billion while revenue increased by 9% q-o-q or 5% y-o-y to RM9.65 billion. The improved bottom-line was attributable to increased top-line (due to higher sales of electricity in Pen. Malaysia & Sabah of 2.3% & 1.0% respectively).


Table 1: Tenaga's last 8 quarterly results


Chart 1: Tenaga's last 22 quarterly results

Valuation

Tenaga (closed at RM9.01 yesterday) is now trading at a PE of 98 times (based on last 4 quarters' EPS of 98 sen). At this PE, Tenaga is deemed very attractive.

Technical Outlook

Tenaga is in an intermediate uptrend. It broke above its horizontal lines at RM7.00 in April & RM8.60 in late May. Yesterday, it broke above the psychological RM9.00 level. It is poised to test its 2007 high of RM9.30. I am optimistic that Tenaga can surpass this level after the Government has agreed that it can "begin implementing the fuel cost pass-through (FCPT)mechanism, entailing higher tariffs for consumers".


Chart 2: Tenaga's daily chart as at July 18, 2013 (Source: Quickcharts)


Chart 3: Tenaga's weekly chart as at July 18, 2013 (Source: Quickcharts)


Chart 4: Tenaga's monthly chart as at July 18, 2013 (Source: Quickcharts)

Conclusion

Based on improved financial performance, fairly attractive valuation, favorable regulatory regime & technical outlook, Tenaga is a good stock for investment- whether medium or long-term. It could be a trading BUY with the breakout above the psychological RM9.00 yesterday. 

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, Tenaga.

Thursday, July 18, 2013

YTLPowr- broke above its downtrend line


YTLPowr has broken above its downtrend line at RM1.55 in late June. Today, it broke above its horizontal line at RM1.68-1.70. With these breakouts, YTLPowr's recovery is poised to begin. The alternative to the share is YTLPowr-WB (exercise price: RM1.21; expiry date: June 11, 2018). The warrant has also broken above its downtrend line at RM0.42 as well as its horizontal line at RM0.48.

Based on technical consideration, YTLPowr & YTLPowr-WB could be good trading BUY.


Chart 1: YTLPowr's weekly chart as at July 17, 2013 (Source: Quickcharts)


Chart 2: YTLPowr-WB's weekly chart as at July 17, 2013 (Source: Quickcharts)

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, YTLPowr & YTLPowr-WB.

Huayang- short-term setback?


Results Update

For QE30/6/2013, Huayang's net profit dropped by 28% q-o-q or 25% y-o-y to RM12 million while revenue also declined by 21% q-o-q or 18% y-o-y to RM80 million. The poorer performance was due to slower construction progress and minimal launches recognition from preceeding quarter and current quarter.


Table: Huayang's last 8 quarterly results


Chart 1: Huayang's last 29 quarterly results

Valuation

Huayang (at RM3.17 yesterday) is trading at a PE of 8.8 times (based on last 4 quarters' EPS of 36 sen). At this PE, Huayang is still deemed attractive but its upside is limited. It may trade up to a PE of 10 times; thus giving an upside of 14% (to RM3.60). 

Proposed Bonus Issue

Huayang has just proposed a 1-for-3 bonus issue. The last time, it proposed a bonus issue (also a 1-for-3 bonus), was in middle of 2011 (completed in October). 

Technical Outlook

Huayang's uptrend accelerated after it broke above the horizontal line at RM1.70. See Chart 2. Thestock rallied to a high of RM3.33-3.34. Profit-taking set in and the stock traded in a short-term downward channel (ABCD). See Chart 3. Huayang's uptrend will continue if it can break above the recent high at RM3.33-3.34.


Chart 2: Huayang's weekly chart as at July 17, 2013(Source: quickcharts)


Chart 3: Huayang's daily chart as at July 17, 2013(Source: quickcharts)
 
Conclusion

Based on good financial performance & still attractive valuation, Huayang is a good stock for long-term investment. However, I expect short-term profit-taking activities to cap its upside at RM3.33-3.34 notwithstanding an attractive bonus issue to come.

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, Huayang.

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.