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Wednesday, May 14, 2014

Tienwah: Bottom-line rebounded

Result Update

For QE31/3/2014, net profit increased by 185% q-o-q but dropped by 43% y-o-y to RM4.3 million on the back of lower revenue of RM83 million  (down 6% q-o-q or 12% y-o-y). The company attributed the drop in revenue to lower demand for cigarettes packaging. Bottom-line rebounded q-o-q as QE31/12/2013 was impact by a one-off provision for redundancy expense of RM2.8 million.


Table: Tienwah's last 8 quarterly results


Chart 1: Tienwah's last 29 quarterly results

Valuation

Tienwah (closed at RM2.52 on Monday) is trading at a PE of 11.5 times (based on last 4 quarters' EPS of 22 sen). At this PE, Tienwah is deemed fairly valued.

Technical Outlook

Tienwah is in a gradual uptrend, SS which accelerated into S1-S1. The S1-S1 support is at RM2.40.

 Chart 2: Tienwah's weekly chart as at May 12, 2014 (Source: Tradesignum)

Conclusion

Based on improved financial performance & still positive technical outlook, Tienwah 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, Tienwah.

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