For QE31/3/2016, Sign's net profit dropped 11% q-o-q or 63% y-o-y to RM5.0 million while revenue dropped by 0.5% q-o-q or 38% y-o-y to RM55 million. Revenue dropped q-o-q as a result of lower project revenue recognized from Kitchen & Wardrobe segment. PBT dropped 13% q-o-q mainly due to lower project profits recognized.
Table: Sign's last 8 quarterly results (Adjusted for a share split of 1-to-2 done in April 2016)
Chart 1: Sign's last 33 quarterly results
As at 31/3/2016, Sign's financial position is deemed adequate. Current ratio stood at 1.9X while total liabilities to equity stood at 0.8x. Receivable increased from RM71 million to RM119 million but its debtors' collection period improved from 172 days to 150 days.
Sign (closed at RM1.11 yesterday) is now trading at a trailing PE of 13.7
(Note: The post is updated to account for the share split of 1-to-2 carried out after the latest quarterly report).
Sign broke below its uptrend line, SS at RM1.10 in August last year (see Chart 2). Since then it has been moving within a downward channel (see Chart 3). 3 weeks ago, Sign showed signs of recovery. Its weekly MACD has almost gone above the zero line while ADX has gone above the 20-mark. Sign looks poised for its next upleg.
Chart 2: Sign's monthly chart as at May 24, 2016_10.00am (Source: ShareInvestor.com)
Chart 3: Sign's weekly chart as at May 24, 2016_10.00am (Source: ShareInvestor.com)
Based on satisfactory financial performance
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.