For QE30/9/2016, Ulicorp's net profit rose 27% q-o-q or 38% y-o-y to RM11 million while revenue was mixed - down 6% q-o-q but up 14% y-o-y to RM52 million. Profit before taxation rose q-o-q mainly due to better profit margin achieved on goods sold during the quarter under review.
Table: Ulicorp's last 10 quarterly results
Graph: Ulicorp's last 13 quarterly results
Ulicorp (closed at RM3.50 last Friday) is now trading at a trailing PER of 14.6x (based on last 4 quarters' EPS of 23.91 sen). As the company has once again returned to high growth - with earnings CAGR of 39% in the past 2 years - the PEG ratio is down to less than 1 time. Thus its valuation is deemed acceptable.
Ulicorp hase found support at the horizontal line at RM3.50.
Chart: Ulicorp's weekly chart as at Nov 25, 2016 (Source: Chartnexus)
Based on improved financial performance and attractive valuation as a growth stock, I revised my rating for Ulicorp from a SELL to a HOLD.