For QE31/1/2015, VS's net profit dropped by 48% q-o-q but rose 387% y-o-y while revenue dropped 15% q-o-q or rose 27% y-o-y to RM465 million. PBT dropped q-o-q to RM26 million as compared RM42.7 million recorded in the immediate preceding quarter (QE31/1/0/2014) due to lower sales generated by the Malaysia operations.
Table 2: VS's last 8 quarterly results
Chart 1: VS's last 40 quarterly results
Valuation
VS (closed at RM4.41 last Friday) is trading at a trailing PE of 9 times (based on last 4 quarters' EPS of 49 sen). If we exclude the exceptional large tax credit for QE31/7/2014, the 4 quarters' EPS would be reduced to 39 sen and the trailing PE would rise to 11 times. Based on the revised PE, VS is deemed fairly valued.
Technical Outlook
Since my last post (here), VS had gained about RM2.00 to the present price of RM4.41. Such as steep rise may not be sustainable.
Chart 3: VS's monthly chart as at Mar 26, 2015 (Source: ShareInvestor.com)
Conclusion
Based a decline in financial performance and recent sharp rise in share price, it may be advisable to take some profit on this stock.
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, VS.
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