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Friday, July 25, 2014

Unisem: Earnings inched higher

Result Update

For QE30/6/2014, Unisem's NP rose 17% q-o-q to RM10.8 million while revenue rose 10.3% to RM252 million. Unisem returned to profitability compared to last year when it incurred a net loss of RM4.2 million on a revenue of RM247 million. The company attributed the higher net profit for the current quarter to the improved gross profit margin as a result of product mix change.


Table: Unisem's last 8 quarterly results


Chart 1: Unisem's last 39 quarterly results

Valuation

Unisem (closed at RM1.69 yesterday) is now trading at a PE of 28 times (based on annualized FY14E EPS of 5.96 sen). While the PE multiple is high, this multiple should ease off as the earning continue to improve.

Technical Outlook

From Chart 2, we can see that Unisem has swung up nicely. Its immediate resistance is at RM1.80 while the immediate support is at RM1.60.


Chart 2: Unisem's weekly chart as at July 24, 2014 (Source: Tradesignum)

Conclusion

Based on improving financial performance & bullish technical outlook, Unisem remains a good stock for long-term investment. Its valuation should improve with better earnings going forward.

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, Unisem.

2 comments:

lai said...

hi Alex,

May i have your view on Pesona Metro please?

Thank you. Have s great week ahead!

Alex Lu said...

Hi lai

Based on technical projection, Pesona may go to RM0.70.