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Monday, March 27, 2017

Superln: Earnings Continue To Grow

Result Update

In QE31/1/2017, Superln's net profit rose by % q-o-q or 45% y-o-y to RM6.2 million while its revenue rose by 16% q-o-q or 15% y-o-y to RM25.8 million. Revenue rose q-o-q mainly due to increase in export sales volume. PBT rose to RM8.0 million from RM6.3 million in the preceding quarter due to higher revenue & profit margin (from 28.4% to 30.9%) 


Table: Superln's last 8 quarters' results


Graph: Superln's last 16 quarters' results

Valuation

Superln (closed at RM2.70 last Friday) is now trading at a trailing PER of 10x (based on last 4 quarters' EPS of 26.52 sen). Based on an earning CAGR of 70%, Superln's PEG ratio is only 0.14x. Thus Superln is deemed very attractive for a growth stock.

Technical Outlook

Superlnis in an uptrend line. Last Friday, it tested the line connecting its recent peaks at RM2.70. This week may see the share price breaking thru this resistance. If that were to happen, we may see an acceleration in the uptrend for Superln.


Chart 1: Superln's weekly chart as at Mar 24, 2017 (Source: Shareinvestor.com)


Chart 2: Superln's monthly chart as at Mar 24, 2017 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance, fairly attractive valuation & positive technical outlook, Superln could be a good stock for trading BUY.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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