Result Update
For QE31/12/2014, Harbour's net profit rose 15% q-o-q or 99% y-o-y to RM13 million while revenue was mixed - down 6% q-o-q but rose 19% y-o-y to RM128 million.
Table 1: Harbour's last 8 quarterly results
Bottom-line has improved y-o-y due to the logistics services and
equipment rental division reporting higher profit before tax of RM12.866
million (cf RM6.542 million last year) which offset a slump in PBT from
the engineering works division - from RM2.887 million to RM0.916
million - due to a sharp drop in revenue from RM24.829 million to
RM11.817 million. The 1H2015 & 1H2014 segmental results are tabulated below:
Table 2: Harbour's segmental results for 1H2015 & 1H2014
Harbour's top-line, bottom-line & profit margin have grown steadily over the past 5 years.
Chart 1: Harbour's last 30 quarterly results
(Note: The next quarterly result for QE31/3/2015 should be out in mid-May.)
Valuation
Harbour (closed at RM1.79 yesterday) is trading at a PE of 7.8 times
(based
on my projected EPS of 23 sen). At this multiple, Harbour is deemed fairly attractive. It could command a PE of 10 times- giving the stock an upside potential of 25%.
Technical Outlook
Harbour has broken above its downtrend line, RR at RM1.70. With this breakout, Harbour may move sideways or it may begin to rise.
Chart 2: Harbour's weekly chart as at April 24, 2015_3.00pm (Source: Share Investors)
Conclusion
Based on good financial performance, reasonable valuation & mildly positive technical outlook, Harbour is
still a good
stock for 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, Harbour.
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