Tuesday, June 24, 2014

Prlexus: Time to take profit!

Results Update

For QE30/4/2014, Prlexus's net profit dropped 67% q-o-q by 17% y-o-y to RM2.2 million while revenue was mixed- dropped 37% q-o-q but rose 14% y-o-y to RM53 million. Revenue dropped q-o-q from RM84.4 million to RM53.3 million due to lower revenue from the garment division. Net profit dropped q-o-q due to lower revenue and unrealised forex loss of RM1.7 million as compared to a unrealised forex gain of RM2.2 million in QE31/1/2014.

Table 1: Prlexus's last 8 quarterly results

Chart 1: Prlexus's last 23 quarterly results


Prlexus (closed at RM1.81 yesterday) is now trading at a PE of 8.6 times (based on last 4 quarters' EPS of 21 sen). At this PE, Prlexus is deemed fully valued.

Technical Outlook

Prlexus is in a long-term uptrend. The stock should have good support at the 10-week SMA line and 20-week EMA line at RM1.62 & RM1.50 respectively.

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


Based on weaker financial performance & full valuation, it may be time to take profit on Prlexus. However, there is no need to rush to sell as the technical outlook for Prlexus is still positive. 

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.

1 comment:

Pyrite said...

Is it time to buy? @1.59