Ye Chiu Metal has a good quarter & a bullish breakout

Yechiu has a very good quarterly result for QE30/9/2006. Its net profit increased by 108% to RM6.4 mil on the back of a 63%-increase in turnover of RM265.2 mil. For the 9-month ended 30/6/2006, net profit increased by 140% to RM22.6 mil on the back of a 57%-increase in turnover to RM689.9 mil, when compared to the same period last year.

Based on the 9-month’s EPS amounted to 27.64 sen, Yechiu’s full year EPS could be 36.8 sen. Yechiu closed at RM1.33 yesterday; giving a PE of 3.6 times.

Chartwise, the stock has just broken out of its descending triangle at RM1.28 yesterday.



Based on attractive valuation & bullish breakout, Yechiu is a BUY.