Prlexus: Earnings Recovered

Results Update

For QE31/7/2016, Prlexus's net profit rose 189% q-o-q or 39% y-o-y to RM10 million while revenue rose 72% q-o-q or 4% y-o-y to RM125 million. Revenue increased q-o-q mainly  due to higher revenue from the apparel division. This led to increase in profits.

  
Table 1: Prlexus's last 8 quarterly results


Chart 1: Prlexus's last 32 quarterly results

Valuation

Prlexus (at RM1.54 at 10.00am) gives a PE of 9 times (based on last 4 quarters' EPS of 17.28 sen). At this PER, Prlexus is deemed fairly attractive.

Technical Outlook

Prlexus has broken above its intermediate downtrend line, RR at RM1.45. Its next resistance is at RM1.60 & then RM1.70.


Chart 2: Prlexus's weekly chart as at Sep 30, 2016_10.00am (Source: ShareInvestor)

If share price tracks earning, we have reason to believe that Prlexus's share price should go higher rather than lower.


Chart 3: Prlexus's monthly chart as at Sep 30, 2016_10.00am compared to profit track record (Source: ShareInvestor)

Conclusion

Based on imporved financial performance, fairly attractive valuation & mildly positive technical outlook, I revise my rating for Prlexus from TAKE PROFIT to ACCUMULATE.

 Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.