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Thursday, March 20, 2014

Scientx: Poised to continue its uptrend


Result Update

For QE31/1/2014, Scientx's net profit rose by 16% q-o-q or 32% y-o-y to RM34 million while revenue increased by 5% q-o-q or 41% y-o-y to RM383 million.

Bottom-line improved y-o-y due to better performance from both manufacturing and property divisions. Manufacturing division reported increased operating profit (increased from RM10.6 million to RM16.0 million) while revenue increased from RM193.5 million to RM288.5 million. Property division also reported higher operating profit (increased from RM23.0 million to RM29.4 million) while revenue increased from RM77.6 million to RM95.0 million.


Table 1: Scientx's last 8 quarterly results


Chart 1: Scientx's last 34 quarterly results 

Valuation

Scientx (closed at RM5.92 yesterday) is now trading at a current PE of 10.5 times (based on annualized EPS of 56.2 sen). At this PE, Scientx is deemed fairly valued.

Technical Outlook

Scientx has been consolidating for the past 8-9 monts. In the past few days, it seems to have broken above the symmetrical triangle at RM5.85-5.90. If this upside breakout can recruit enough support, Scientx could well continue with its prior uptrend.


Chart 1: Scientx's weekly chart as at Mar 19, 2014 (Source: Tradesignum)


Chart 3: Scientx's 5-year weekly chart as at Mar 19, 2014 (Source: Tradesignum)

Conclusion

Based on satisfactory financial performance, reasonable valuation & possible technical breakout, Scientx 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, Scientx.