In QE30/4/2017, Superln's net profit rose by 2% q-o-q or 72% y-o-y to RM6.4 million while its revenue rose by 26% q-o-q or 37% y-o-y to RM32.5 million. Revenue rose y-o-y due to increased revenue for both the manufacturing & trading divisions.
The manufacturing division recorded higher revenue of RM28.4 million (FY 2016 : RM22.2 million) due to higher sales volume while PBT rose to RM7.9 million (FY 2016 : RM4.9 million) mainly due to the increase in total gross profit generated from higher volume of sales and favourable exchange rate.
Table: Superln's last 8 quarters' results
Graph: Superln's last 17 quarters' results
Superln (closed at RM1.92 yesterday) is now trading at a trailing PER of 13x (based on last 4 quarters' EPS of 14.94 sen). Based on an earning CAGR of 60% over the past 3 years, Superln's PEG ratio is only 0.2x. As per the notes to its accounts, the company plans to invest approximately USD 4 million for the expansion plans and is targeting for Factory 4 to commence production in the FY2019. The new factory would enable Superln to strengthen its presence and support its customers in Vietnam and neighboring countries. Hence, Superln will continue to be a growth stock trading at attractive earnings multiple.
Note: Superln has completed its 1-for-2 share split in early June. This exercise may explain the strong rally in the share price for the past 3 months. It is not unusual that the stock may consolidate its recent gain before it continues with its upward trajectory.
Superln is in an uptrend line, which accelerated after it broke above the line, AB at RM1.30-1.33.
Chart 1: Superln's weekly chart as at Jun 20, 2017 (Source: Shareinvestor.com)
Chart 2: Superln's monthly chart as at Jun 20, 2017 (Source: Shareinvestor.com)
Based on good financial performance, attractive valuation & positive technical outlook, Superln could be a good stock for trading BUY.long-term investment. If you want to get into this stock, I think any price below RM2.00 will be a good entry.
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