Thursday, August 10, 2017
CEPAT: Too Slow For Comfort
For QE30/6/2017, Cepat's net profit increased by 56% q-o-q or 91% y-o-y to RM9.7 million while turnover rose 19% q-o-q or 37% y-o-y to RM70 million. Profits rose q-o-q due mainly to an increase in FFB production and export of electricity by 27% and 21% respectively while the oil mill also contributed by giving a higher milling margin. CPO and PK selling price decreased by 14% and 39% respectively.
Table: Cepat's last 8 quarterly results
Graph: Cepat's last 43 quarterly results
Cepat (at RM0.84 yesterday) is trading at a PE of 8 times (based on adjusted last 4 quarters' EPS of 10.48 sen) as well as trading at only 0.5x its book value (based on NTA of RM1.57 per share as at 30/6/2017).At these multiples, Cepat is deemed fairly attractive.
Cepat is still in an intermediate downtrend line. If it can break above this downtrend line at RM0.94, Cepat may begin its next upleg.
Chart: Cepat's monthy chart as at November 16, 2016 (Source: Malaysiastock.biz)
Based on improving financial performance & attractive valuation, Cepat could be a good stock for long-term investment.