In QE30/9/2015, Evergrn's net profit rose 15% q-o-q or 174% y-o-y to RM27.6 million while revenue was mixed - down 2% q-o-q but up 9% y-o-y - at RM256 million. Profits increased q-o-q mainly contributed by the lower cost of glue, higher operational efficiency and synergistic cost savings derived from the group's recent restructuring of certain operational facilities.
Table: Evergrn's last 8 quarters' financial performance
Chart 3: Evergrn's last 43 quarters' financial performance
Valuation
Evergrn (closed at RM2.14 last Friday) is now trading at a trailing PER of 12.8 times (based on last 4 quarters' EPS of 16.75 sen. At this PER, Evergrn is still deemed attractive.
Technical Outlook
Evergrn has tested its 2007 high of RM2.20. If it can surpass this level, it may continue its uptrend. Its immediate support levels are the psychological RM2.00 mark & the 2010 high of RM1.80.
Chart 2: Evergrn's monthly chart as at Nov 20, 2015 (Source: ShareInvestor.com)
Conclusion
Based on satisfactory financial performance, attractive valuation & bullish technical outlook, Evergrn 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, Evergrn.
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