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Monday, January 29, 2018

Pantech: Earnings dipped sequentially


Result Update

For QE30/11/2017, Pantech's net profit dropped 14% q-o-q but rose 57% y-o-y to RM10 million while its revenue unchanged q-o-q but rose 58% y-o-y to RM157 million. Net profit dropped q-o-q mainly due to the trading mix and foreign exchange currency loss.


Table: Pantech's last 8 quarterly results


Graph: Pantech's last 44 quarterly results

Valuation

Pantech (closed at RM0.635 last Friday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 6.37 sen). Dividend yield is decent at 3.9%. At these multiples, Pantech is priced fairly for a stock in the O&G sector where recovery is progressing slowly.

Technical Outlook

Pantech is in a large trading range, with a slight upward biasness. However, it is in an intermediate uptrend line, with support at RM0.63.


Chart 1: Pantech's monthly chart as at Jan 26, 2018 (Source: Malaysiastock.biz)


Chart 2: Pantech's daily chart as at Jan 26, 2018 (Source: Malaysiastock.biz)

Conclusion

Based satisfactory financial performance, fair valuation and mildly bullish 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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