For QE30/9/2018, Boxpak returned to the black after 7 quarters of losses. It made a net profit of RM1.2 million on a revenue of RM168 million. Group revenue rose 12.6% q-o-q mainly due to increased sales volume in Q3, 2018. Gross profit increased from RM11.3 million in Q2, 2018 to RM15.4 million in Q3, 2018, as a result of higher sales tonnage and improved margins contributed by higher selling prices. Consequently, the Group recorded a profit before taxation of RM1.0 million in Q3, 2018 as compared to a loss before taxation of RM2.8 million in Q2, 2018.
Table: Boxpak's last 8 quarterly results
Graph: Boxpak's last 54 quarterly results
Due to its rapid growth, Boxpak's financial position is a bit stretched. Liquidity is tight with current ratio at 1.0 time as at 30/9/2018 while gearing is elevated with total liabilities to total equity at 1.7 times.
Boxpak (closed at RM0.87 yesterday) is now trading at a Price to Book of 0.40 time (based on NTA per share of RM2.15).
Boxpak has been sliding for the past 3 years, from a high of RM3.00 to a recent low of RM0.87. There is no sign yet that it is even attempting to make a bottom. That might change with the report of its first quarterly profit after nearly 2 years.
Chart: Boxpak's monthly chart as at Nov 21, 2018 (Source: Malaysiastock.biz)
Based on its return to profitability and deeply discounted share price, Boxpak could be a good stock for long-term investment. Share price recovery will come slowly and it will be dependent on the continuity and magnitude of its profitable financial performance.