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Sunday, July 01, 2018

Cypark: Earning Soared

Result Update

For QE30/4/2018, Cypark's net profit rose 53% q-o-q or 62% y-o-y to RM12 million while revenue increased by 18% q-o-q & % y-o-y to RM99 million. Revenue and profit before tax rose q-o-q mainly due to the better income contributed by the intense specialist work activities performed in the current stage of the project cycle in Environmental Engineering division. 


 Table: Cypark's last 8 quarterly results


Graph: Cypark's last 32 quarterly results

Valuation

Cypark (closed at RM2.29 last Friday) is now trading at a PE of 9.3 times (based on last 4 quarters' EPS of 24.72 sen). At this multiple, Cypark is deemed fairly attractive.

Technical Outlook

Cypark broke its long-term uptrend line, SS at RM2.50 in April. Its decline has been checked by the horizontal line at RM2.20.


Chart 1: Cypark's monthly chart as at Jun 29, 2018 (Source: Shareinvestor.com)

On closer look, the horizontal support appears to be at RM2.25


Chart 2: Cypark's weekly chart as at Jun 29, 2018 (Source: Shareinvestor.com)

Conclusion

Based on the good financial performance and fairly attractive valuation, I consider a good stock for long-term investment. My rating is downgraded to a HOLD because of the breakdown below the uptrend line.

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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