In QE31/10/2018, Superln's net profit rose 48% q-o-q or 16% y-o-y to RM4.2 million while its revenue rose 5% q-o-q but declined 12% y-o-y to RM27 million. The higher revenue coupled with an increase in gross profit to about 36% as compared to 30% in the preceding quarter (due to more favorable exchange rate environment and better efficiency) led to an increase of 46% in profit before tax to RM5.7 million. Correspondingly, profit after tax for the group increased by RM1.4 million to RM4.2 million as compared to the preceding quarter.
Table: Superln's last 8 quarters' results
Graph: Superln's last 23 quarters' results
As at 31/10/2018, Superln's financial position is deemed healthy with current ratio at 3.4 times and gearing ratio at 0.26 time.
Superln (closed at RM1.26 yesterday) is now trading at a trailing PER of 16x (based on last 4 quarters' EPS of 7.7 sen). At this PER, Superln is deemed fully valued. Superln paid out dividend totaling 3.5 sen for FYE30/4/2018. I think it may do the same for FYE30/4/2019. This will give the stock a dividend yield of 2.8%.
Superln has been moving sideways for the past 9 months. If the share price can go above RM1.50, the next upleg may begin.
Chart: Superln's weekly chart as at Dec 12, 2018 (Source: Malaysiastock.biz)
Based on improved financial performance, healthy financial position and fair valuation, Superln is a good stock for long-term investment.
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