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Friday, February 26, 2016

TGuan: Earnings soared

Results Update

For QE31/12/2015, TGuan's net profit increased by 38% q-o-q to RM15.5 million while turnover increased by 7% q-o-q to RM196 million. The q-o-q increase in revenue was mainly due to higher export volume. The q-o-q increase in profit before tax was mainly due to the higher profit contribution from its plastic bags and PVC food wrap products.


Table: TGuan's last 8 quarterly results


Chart 1: TGuan's last 41 quarterly results

Valuation

TGuan (closed at RM2.98 yesterday) is now trading at a PE of 8.1 times (based on last 4 quarters' EPS of 36.6 sen). At this PER, TGuan is deemed very attractive.

Technical Outlook

TGuan is in a long-term uptrend, supported by its 40-week EMA line.


Chart 2: TGuan's monthly chart as at Feb 25, 2016 (Source: ShareInvestor.com)

TGuan had a sharp price run-up in the  past 6 months. Its immediate resistance is at RM3.40-3.50 while the immediate support is at RM2.80.

 

Chart 3: TGuan's weekly chart as at Feb 25, 2016 (Source: ShareInvestor.com)
 
Conclusion

Based on improved financial performance, attractive valuation & bullish technical outlook, TGuan could be a good stock for a 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, TGuan.

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