Thursday, September 28, 2006

Juan posted higher net profit for QE31/7/06

Juan's net profit for QE31/7/06 increased 33.0% q-o-q or 66.9% y-o-y to RM5.4 mil. Its turnover has increased by 4.1% q-o-q or 4.4% y-o-y to RM60.3 mil. The big jump in net profit was attributable to the exceptonal gain on disposal of a subsidiary company of RM1.57 mil. If this gain is excluded, Juan's net profit would be lower than the preceding quarter's net profit by 5.6% but still 18.5% higher than the net profit for last year's corresponding quarter (see the table below).

Based on the last quarter's net profit (excluding the exceptional gain) of RM3.84 mil, Juan's annualized net profit would come to RM15.36 mil. EPS would be about 28.9 sen. Using this morning clsoing price of RM1.08, the stock is trading at a PE of 3.7 times. This is fairly attractive. [You may recall that I've highlighted this stock as a good long-term investment in July.]

Juan's share price went up 9.5 sen to close at RM1.08 at the end of the morning session. This has resulted in Juan share price breaking out of its descending triangle at the RM1.03 level. If the share price can sustain above the RM1.03 level, there is a good chance that the stock may go up further.

Chart: Juan's weekly chart as at Sep 27

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