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Monday, March 24, 2014

Prlexus: Profits rebounded on higher revenue from garment division

Results Update

For QE31/4/2014, Prlexus's net profit increased by 168% q-o-q or 37% y-o-y to RM6.7 million while revenue increased by 27% q-o-q or 32% y-o-y to RM85 million. The q-o-q increase in revenue is mainly due to the increase in revenue of the garment division during the quarter. Profit increased q-o-q mainly due to increase in profits as a result of higher revenue from the garment division. Lower profit in the preceding quarter is mainly due to the recognition of fair value on ESOS.


Table 1: Prlexus's last 8 quarterly results


Chart 1: Prlexus's last 22 quarterly results

Valuation

Prlexus (closed at RM1.16 as at 4.30pm) is now trading at a PE of 5.3 times (based on last 4 quarters' EPS of 22 sen). At this PE, Prlexus is deemed fairly valued for a small-cap stock.

Technical Outlook

For the past 6 months, Prlexus has been trading sideway with support at RM1.05 & resistance at RM1.25. A breakout of either support or resistance level will point the way forward for this stock.


Chart 2: Prlexus's weekly chart as at Mar 21, 2014 (Source: Tradesignum)

 Conclusion

Based on good financial performance, reasonable valuation & mildly positive technical outlook, Prlexus is still a good stock to hold 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, Prlexus.

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