Monday, August 25, 2014

Jobst: Top-line & Bottom-line improved

Result Update

For QE30/6/2014, JOBST's net profit increased by 29% q-o-q or 19% y-o-y to RM19.8 million while revenue increased by 8% q-o-q or 10% y-o-y to RM51.3 million. The q-o-q increase in revenue was mainly due to higher sales from online job posting services and dividends received from quoted investments in Hong Kong. In terms of profitability, pre-tax profit rose by 15.9% q-o-q mainly due to the aforementioned factor and the increase in the share of profit of associates.

Table: JOBST's last 8 quarterly results

 Chart 1: JOBST's last 33 quarterly results


JOBST (closed at RM2.57 last Friday) is now trading at a PE of 25 times (based on last 4 quarters' EPS of 10.3 sen). At this multiple, JOBST is deemed fully valued.

Technical Outlook

JOBST has been moving sideway for the past 6 months, with support at RM2.40. If we ignore the spike-up in February this year, then we can see that the resistance is at RM2.50-2.55. A breakout above that level could signal the continuation of its prior uptrend.

Chart 2: JOBST's weekly chart as at Aug 22, 2014 (Source: Tradesignum)


Based on commanding position in the market & satisfactory financial performance, JOBST is a good stock to hold for long-term investment. However, its valuation is a bit stretched and until there is an upside breakout above RM2.55 (preferably RM2.60), the stock will continue to trade sideways.

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, JOBST.


lai said...

Hi Alex,

Do you have any opinion on this stock name gpharoah?

Thank you

Alex Lu said...

Hi Lai,

Gpharos is in a rising wedge formation, with support at RM0.95 and resistance at RM1.13.

Rising wedge is also known as bearish wedge as it has the tendency to breakdown instead of breaking upward. With that in mind, you have to be watchful of any breakdown of the RM0.95 support. If that were to happen, it could signal a reversal of the current rally.

Firefly said...
This comment has been removed by the author.
J-base said...

Hi Alex,

I think JOBST is moving sideway mainly due to it pending an approval for being acquired by Australian based SEEK group. Recent upward revision to its acquisition price had triggered further rise in the share price. Currently pending approval of Singapore Company Competitive Authority.

Alex Lu said...

Hi J-base

Thanks for sharing.