For QE31/3/2017, Panamy's net profit dropped by 14% q-o-q or 26% y-o-y to RM27 million while revenue dropped by 13% q-o-q or 1% y-o-y to RM247 million. Revenue dropped q-o-q due to slower demand for Home Appliances products for both domestic and export market. The slowdown in market demand was mainly due to volatility of Middle East region, shortfall from Thailand sales and stiffer competition. PBT decreased by 33.6% or RM13.4 million as compared to combined profit before tax of RM39.7 million in the preceding quarter. (Panamy's latest result was announced on May 30.)
Table: Panamy's last 8 quarterly results
Graph: Panamy's last 48 quarterly results
Panamy (at RM35.04 last Friday) is trading at a PE of 16.8 times (based on last 4 quarters' EPS of 209 sen). Notwithstanding a drop in dividend, Panamy still pays a decent DY of 3.3%.
Panamy is a long-term upward channel, with support at RM26.00.
Chart 1: Panamy's monthly chart as at Jun 2, 2017 (Source: ShareInvestor)
Panamy is now hanging onto the horizontal line at RM35.00.
Chart 2: Panamy's daily chart as at Jun 2, 2017 (Source: ShareInvestor)
Despite the weaker financial performance, Panamy is still a good stock for long-term investment based on attractive valuation and positive technical outlook.
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