For QE31/7/2018, Jacorp returned to the black as it reported a net profit of RM4.6 million as compared to a net loss of RM392k in the immediate preceding quarter.
Table 1: Jaycorp's last 8 quarterly results
The improvement in the financial performance was due to overall better profits or turnaround in all segments, especially the Furniture segment.
Table 2: Jaycorp's segmental results for QE31/7/2018
Graph: Jaycorp's last 32 quarterly results
Financial position is deemed healthy with current ratio at 2.5 times and gearing ratio at 0.35 time.
Jaycorp (closed at RM0.94 last Friday) is now trading at a PE of 12.5 times (based on last 4 quarters' EPS of 7.52 sen). At this multiple, Jaycorp is deemed fairly attractive.
Jaycorp is struggling to stay at its long-term uptrend line at RM0.90.
Chart : Jaycorp's weekly chart as at Sep 28, 2018 (Source: Malaysiastock.biz)
Based on the improved financial performance, healthy financial position and fairly attractive valuation, I consider a good stock for long-term investment.
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