For QE31/3/2019, Penta's PBT increased by 4% q-o-q or 171% y-o-y to RM19.6 million while revenue rose 6% q-o-q or 20% y-o-y to RM119 million. Group revenue rose q-o-q due to increase in sales from automated equipment operating segment. Group profit before taxation rose by 9% q-o-q which was in tandem with the increase in revenue.
Table: Penta's last 8 quarterly results
Graph: Penta's last 25 quarterly results
Penta's financial position is satisfactory, with current ratio at 3.6 times and gearing ratio at 0.3 time. In addition, it is noted that Penta has a net cash balance of RM373 million or RM1.18 per share!!
Penta (closed at RM4.20 yesterday) is now trading at a PER of 19 times (based on last 4 quarters' EPS of 21.9 sen). Based on an earning CAGR of 42% over the past 3 years, PENTA's PEG ratio is at 0.5 time. At this PEG ratio, Penta is deemed a very attractive growth stock.
Penta is rising in a long term uptrend (in blue). However the current rally may be hitting the resistance from the line connecting its recent peaks (in red). Unless there is a breakout above the red line (at RM4.50), Penta's upside will be limited.
Chart: Penta's weekly chart as at May 15, 2019 (Source: Malaysiastock.biz)
Based on good financial performance & financial position and attractive valuation, Penta is a good stock for long term investment.
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