HPI maintained its good performance

I’ve highlighted the good financial performance of HPI, a manufacture of corrugated carton & plastic packaging products in January this year (go here). Except for a quick price run-up from RM0.86 to RM0.98 in January (which was maintained for a period of a few weeks up to end-February), the share price has since drifted back to the RM0.80-85 level again.

Yesterday, HPI announced its results for QE28/2/2007 where its net profit has increased by 5.0% q-o-q or 43.3% y-o-y to RM3.3 million. Its turnover, which has increased by 20.6% to RM70.0 million from RM58.0 million recorded in the previous corresponding quarter, is marginally lower than the preceding quarter's turnover.



Based on today (April 11)'s closing price of RM0.82 & the last 4 quarters' EPS of 28.1 sen, HPI is trading at a PE of 2.9 times. How is that for being cheap?


Chart: HPI's daily chart as at April 11

From the above chart, we can see that HPI is in a short-term uptrend, with support at RM0.78.

Based on cheap valuation, HPI is a very good stock for medium-term investment.