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Thursday, July 27, 2017

Pantech: Earning Imrpoved Further


Result Update

For QE31//5/2017, Pantech's net profit rose 24% q-o-q or 73% y-o-y to RM14 million while its revenue was mixed - down 1% q-o-q but up 22% y-o-y - to RM152 million. Net profit rose due to higher profit margin as a result of better product mix achieved.


Table: Pantech's last 8 quarterly results


Graph: Pantech's last 41 quarterly results

Valuation

Pantech (closed at RM0.635 yesterday) is now trading at a PE of 13 times (based on last 4 quarters' EPS of 4.99 sen). Dividend yield is decent at 3.4%. At these multiples, Pantech is priced fairly for a stock in the O&G sector where recovery is still a work in progress.

Technical Outlook

Pantech's monthly chart shows that the stock is on a recovery path.


Chart 1: Pantech's monthly chart as at July 26, 2017 (Source: Shareinvestor.com)

Its immediate resistance is the May high of RM0.66 & immediate support is its uptrend line at RM0.61.

 
Chart 2: Pantech's daily chart as at July 26, 2017 (Source: Shareinvestor.com)
 
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.

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