Table: Prlexus's last 8 quarterly results
Graph: Prlexus's last 27 quarterly results
Prlexus (closed at RM1.50 last Friday) is now trading at a PE of 9.2 times (based on last 4 quarters' EPS of 16.25 sen). At this PER, Prlexus is deemed fairly valued. [Note: Prlexus was trading at RM1.41 as at 9.15am.]
Prlexus was in a long-term uptrend, which peaked at RM1.90 in 2015. Now it is a consolidation phase.
Chart 1: Prlexus's monthly chart as at Dec 16, 2016 (Source: ShareInvestor)
In the consolidation phase, Prlexus pulled back to the support from the horizontal line at RM1.40 and momentarily tested the horizontal line at RM1.30. IPrlexus may trade within a band between the support at RM1.30/1.40 & the resistance at RM1.55/1.65 for the next few weeks/months until the revenue & profits swing back in the next upcycle.
Chart 2: Prlexus's weekly chart as at Dec 16, 2016 (Source: ShareInvestor)
Based on good financial performance (albeit poorer 1Q17 result) and fair valuation, Prlexus is rated a HOLD.