For QE31/32017, Harbour's net profit dropped 93% q-o-q or 96% y-o-y to RM0.54 million while its revenue was mixed - up 22% q-o-q or down 17% y-o-y - to RM151 million. Revenue rose q-o-q due to higher revenue from Shipping & Logistics divisions but partially offset by lower revenue from Engineering & Property divisions. Despite higher revenue, Shipping & Logistics divisions suffered a drop in PBT as did the Engineering & Property divisions. The Engineering division reported a loss before tax due to certain projects near completion and anticipated delay in new projects. (Harbour's latest result was announced on May 24.)
Table: Harbour's last 8 quarterly results
Graph: Harbour's last 39 quarterly results
Harbour (closed at RM0.72 last Friday) is now trading at a PE of 8 times (based on last 4 quarters' EPS of 9 sen). At this PER, Harbour is deemed fairly valued. (Note: Harbour completed a 1-to-2 share split, 1-for-10 bonus share issue & 1-for-10 bonus warrant in March 2016.)
Harbour broke below its recent low of RM0.76 after the announcement of its bad result.
Chart 1: Harbour's daily chart as at NJun 2, 2017 (Source: ShareInvestor)
With this breakdown, Harbour may drop to its long-term "uptrend curved line" with support at RM0.60.
Chart 2: Harbour's monthly chart as at NJun 2, 2017 (Source: ShareInvestor)
Despite the weak financial performance, I still have faith in Harbour. However, I am lowering my rating for Harbour from a BUY to a HOLD while I await a turnaround in the company's performance.
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