Willowglen MSC Bhd ("Willow") is involved in the research, development & supply of computer-based control systems. Its systems can cater for a wide range of applications in key areas such as water management industry, oil & gas pipeline systems public utility systems & ntegrated monitoring systems.
Recent Financial Results
From the table below, you can see that Willow's net profit for the last 4 quarters has increased by 86% to RM8.0 million when compared to the preceding 4 quarters. This was achieved on a 8.5%-increase in turnover form RM36.4 million to RM39.4 million. EPS has increased from 1.75 sen to 3.25 sen.
Valuation
Based on the closing price of RM0.245 for February 14 & the EPS of 3.25 sen for the last 4 quarters, Willow is trading at a PE of 7.5 times. At that multiple, Willow is deemed relatively inexpensive for a Mesdaq stock.
Technical Outlook
Willow has been in an uptrend since May 2005. This medium-term uptrend line will provide support at the RM0.17 level while the immediate uptrend line support at RM0.22.
Chart: Willow's daily chart as at February 14
Conclusion
Based on reasonable valuation & nice technical outlook, Willow would be a good buy (though not a screaming buy) if you believe that Mesdaq stocks may be poised to go higher.
No comments:
Post a Comment