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Thursday, April 24, 2014

TAS: Top-line and bottom-line spiked up!

Recent Financial Result

For QE28/2/2014, TAS's revenue increased 133% q-o-q or 178% y-o-y to RM114 million while net profit rose 44% q-o-q or 99% y-o-y to RM10.4 million. The increased revenue is due to the completion & delivery of 2 units of anchor handling tug supply vessels, 1 units of harbor tug and 2 units of tugboats.

TAS commented that the high price of crude oil will spur oil majors to increase their offshore deep sea oil exploration & production activities; thus increasing the demand for offshore support vessels, the main stay of TAS's business operation. TAS's build-to-stock model has placed the company in an advantageous position in the current environment as vessel owners require shorter delivery period for their vessels.


Table 1: TAS's last 8 quarterly results


Chart 1: TAS's last 27 quarterly results 

Valuation
TAS (closed at RM1.36 yesterday) is now trading at a current PE of 8 times (based on annualized EPS of 16.6 sen). TAS may trade up to PER 9-10x, thus giving the stock a potential upside of 12-25%.

Technical Outlook

TAS has been trapped in a flag formation for the past 5-6 months. A breakout of this formation will point the way forward for the stock.


Chart 2: TAS's weekly chart as at Apr 23, 2014 (Source: Tradesignum)

Conclusion

Based on satisfactory financial performance and attractive valuation, TAS is still rated a HOLD.

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, TAS.

3 comments:

luckystock2 said...

Hi Alex ,
Can you comment on Mtdacpi and Annjoo's technical outlook?
Many thanks!

lai said...

Hi Alex,

Between GOB, Malton and Seal, where would you put your bet on?

Sorry for putting you on the table. No pun intended.

Thanks

Alex Lu said...

Hi lai

GOB and Malton have all broken above their 2013 high of RM0.95 & RM1.00 respectively while Seal has broken above its 2011 high of RM0.68. Thus, their outlook are bullish. The good news is they have corrected but still above the breakout level. This could mean that there is a potential for another push, provided they do not drop below the breakout level.

Mtdacpi has broken above its long-term downtrend in 2013 but it has been trapped in a triangle for the past 9-10 months. An upside breakout of the RM0.52-0.53 resistance could be the start of the next upleg for this stock. Meanwhile, Annjoo is still trying to break above its long-term downtrend line.