Result Update
For QE31/10/2014, Scientx's net
profit dropped by 38% q-o-q but rose 3% y-o-y to RM30 million while revenue grew by 4% q-o-q or 18% y-o-y to RM431 million. Pre-tax profit dropped q-o-q due to poorer products mix for both manufacturing & property development divisions plus provision for unrealized forex loss of RM5.0 million.
Table 1: Scientex's last 8 quarterly results
Chart 1: Scientex's last 37 quarterly results
Valuation
Scientex (at RM7.08 last Friday) is now trading at a trailing PE of 10.4 times
(based on last 4 quarters' EPS of 68 sen). With strong growth of about 30% last 4 quarters, Scientx is an attractive growth stock with PEG ratio is about 0.3
time only.
Technical Outlook
Scientx has been in an uptrend since breaking above its large triangle (ABC) at RM1.50 in early 2010. Despite the recent selldown, Scientx's uptrend is still intact. The sharp q-o-q drop in bottom-line could lead to short-term weakness in the share price.
Chart 2: Scientex's weekly chart as at Dec 19, 2014 (Source: Tradesignum)
Conclusion
Based on good financial performance, attractive valuation & positive
technical outlook, Scientex remains a good stock for medium to 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, Scientex.
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