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Monday, July 03, 2017

Prlexus: Earning Plunged!

Results Update

For QE30/4/2017, Prlexus's net profit plunged 79% q-o-q or 54% y-o-y to RM1.6 million on the back of lower revenue which dropped 43% q-o-q or 15% y-o-y to RM62 million. Revenue dropped q-o-q mainly due to lower revenue from the apparel division. This led to the q-o-q drop in profits.

  
Table: Prlexus's last 8 quarterly results


Graph: Prlexus's last 35 quarterly results

Valuation

Prlexus (closed at RM1.55 last Friday) is now trading at a PE of 10.2 times (based on last 4 quarters' EPS of 16.25 sen). At this PER, Prlexus is deemed fairly valued. 

Technical Outlook

Prlexus has been consolidating between RM1.35 & RM1.65 for the past 1 year. In view of the poor result, the share price is likely to drop to the support at RM1.35. If the support at RM1.35 failed, Prlexus's downtrend may continue.


Chart 1: Prlexus's monthly chart as at Jun 30, 2017 (Source: ShareInvestor)


Chart 2: Prlexus's weekly chart as at Jun 30, 2017 (Source: ShareInvestor)

Conclusion

Despite the poor financial performance, Prlexus is rated a HOLD as it is trading at reasonable valuation. If Prlexus breaks below RM1.35, the HOLD rating will be revised to a SELL. 

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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