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Thursday, November 26, 2015

Aji: Earning smells good!

Result Update

For QE30/9/2015, Aji's net profit rose 20% q-o-q or 62% y-o-y to RM12.4 million while revenue was mixed- down 2% q-o-q but up 6% y-o-y to RM94 million. Revenue dipped by 2% q-o-q due to lower sales achieved by the Umami segment as a result of slight dip in “AJI-NO-MOTO” consumer sales in domestic market. Revenue from the other segment, i.e. Food & Seasoning segment decreased by 2.5% due mainly to reduced industrial product sales delivery. Nonetheless, profits increased q-o-q due to better profitability by export sales. 


Table: Aji's last 8 quarterly results


Chart 1: Aji's last 41 quarterly results

Valuation

Aji (closed at RM6.40 yesterday) is now trading at a PE of 10.7 times (based on last 4 quarters' EPS of 60 sen). At this multiple, Aji is deemed fairly attractive. In addition, Aji pays a decent dividend yield of 3.1%.

Technical Outlook

Aji is in an uptrend line with support at about RM5.80. Overhead resistance is at RM6.60.


Chart 2: Aji's weekly chart as at Nov 25, 2015 (Source: ShareInvestor.com)
 

Chart 3: Aji's monthly chart as at Nov 25, 2015 (Source: ShareInvestor.com)

Conclusion

Based on improved profit & profit margin, attractive valuation & positive technical outlook, AJI is 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, AJI.

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