For QE31/3/2015, Sign's net profit increased by 10% q-o-q or 225% y-o-y to RM13.4 million while revenue grew by 23% q-o-q or 109% y-o-y to RM88 million.
Table: Sign's last 8 quarterly results
Chart 1: Sign's last 29 quarterly results
Valuation
Sign (closed at RM2.38 yesterday) is now trading at a trailing PE of 6.9 times (based on last 4 quarters' EPS of 34.4 sen). At this PE multiple, Sign is deemed very attractive.
Technical Outlook
Sign broke out of a Cup-with-handle formation at RM1.60. A simple 1-to-1 price extension would put the price target at RM2.60-2.70.
Chart 2: Sign's monthly chart as at May 25, 2015 (Source: ShareInvestor.com)
Conclusion
Based on strong financial performance, attractive valuation & positive technical outlook, Sign is rated 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, Sign.
2 comments:
Hi Alex,
From your point of view, which stock good to invest under properties sector (TROP vs UEMS)?
Please advice. Thanks in advance.
Hi Jim
It's a tough one. I would go for Trop because its landbank is not too concentrated like UEMS. In addition, Trop's landbank is ripe for development and located in high demand region. UEMS's land is predominantly located in Iskandar and that's saturated with new launches.
What UEMS need is more entrepreneur spirit! MRCB has acquired this management talent & enterprising spirit in the person of Fateh (a substantial shareholder) and hopefully UEMS will have its. I thought its merger with Sunrise was for that purpose; to get Tong on board. It didn't work out. Until then, UEMS will languish as an also-ran.
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