For QE30/6/2018, TChong's net profit increased by 190% q-o-q to RM12 million while revenue rose 5% q-o-q to RM1.088 billion. Revenue rose q-o-q mainly due to higher number of vehicles sold and EBITDA & net profit rose q-o-q due to improvement in the margins with the favourable sales mix.
Table: TChong's last 8 quarterly results
TChong's revenue, profits and profit margins appear to have turn the corner in the last few quarters.
Graph: TChong's last 47 quarterly results
As at 30/6/2018, TChong's financial position is deemed satisfactory with current ratio at 1.4 times and gearing ratio at 0.9 time.
TChong (closed at RM1.69 yesterday) is now trading at a PBR of 0.4 times (based on NTA of RM4.28 as at 30/6/2018). As the group has yet to make a profit on cumulative basis for the 4 quarters to 30/6/2018, TChong is unable to give out any PER.
TChong appears to be making a base at around RM1.60.
Chart 1: TChong's monthly chart as at Aug 14, 2018 (Source: ShareInvestor.com)
Chart 2: TChong's weekly chart as at Aug 14, 2018 (Source: ShareInvestor.com)
Based on improved financial performance & adequate financial position, TChong could be a good stock for recovery play.
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