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Wednesday, April 26, 2017

Pantech: Earnings Jumped!


Result Update

For QE28/2/2017, Pantech's net profit rose 77% q-o-q or 54% y-o-y to RM11 million while its revenue increased by 54% q-o-q or 40% y-o-y to RM153 million. The better Group performance was mainly due to the increase in sales demand and delivery for RAPID projects.


Table: Pantech's last 8 quarterly results


Graph: Pantech's last 30 quarterly results

Valuation

Pantech (closed at RM0.61 yesterday) is now trading at a PE of 13 times (based on last 4 quarters' EPS of 4.73 sen). Dividend yield is at 3.0%. At these multiples, Pantech is deemed reasonably priced for a stock in the O&G sector which is poised for recovery.

Technical Outlook

Pantech is in a long-term uptrend line, with support at RM0.45.


Chart: Pantech's weekly chart as at April 25, 2017 (Source: Malaysiastock.biz)

Conclusion

Based satisfactory financial performance, fair valuation & positive technical outlook, Pantech is a good stock 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.

1 comment:

steve said...

Hi,

Just wondering what makes you think oil is recovering? So far, I still see oversupplied all the way without any clue of balancing. Whenever OPEC reduces production, Russia and shale oil increase their production. Furthermore, we see more and more large scale new oil fields been discovered and ready for production as long as market allows it. On the other hand, other form of energy continues to decrease costs and increase production efficiency. In long term, I really don't see how oil could recover. Perhaps, any recovery could be just short term re-balancing.