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Wednesday, March 01, 2017

Cocolnd: Earnings Soared

Results Update
 
For QE31/12/2016, Cocolnd's net profit increased by 105% q-o-q or 60% y-o-y to RM16.9 million while revenue increased by 19% q-o-q or 6% y-o-y to RM78 million. Revenue rose q-o-q due to increasing order of own brand of gummy especially in China market. Profit before tax increased by 76% q-o-q mainly attributable to higher margin sales mix and gain on foreign currencies exchange from export revenue.


Table: Cocolnd's last 8 quarterly results

We can see from the graph below that top-line and bottom-line as well as profit margins are breaking into new high.


Graph: Cocolnd's last 34 quarterly results

Valuation

Cocolnd (closed at RM2.27 as at 12.00 noon) is now trading at a trailing PE of 12 times (based on last 4 quarters' EPS of 19.15 sen). At this PE, Cocolnd is deemed fairly attractive.

Technical Outlook

Cocolnd is in an intermediate uptrend line, with support at RM2.05. If it can charge thru the 2016 high of RM2.40, Cocolnd may continue with its prior long-term uptrend. Its potential target is RM2.80-3.00.

 
Chart 1: Coclnd's weekly chart as at Feb 28, 2017 (Source: Shareinvestor.com)


Chart 2: Coclnd's monthly chart as at Feb 28, 2017 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Cocolnd is a good stock to consider for long-term investment.

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.

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