Friday, June 29, 2007

VS reported continued growth in net profit for QE30/04/2007

VS has just announced its results for QE30/4/2007. The results show that VS’ net profit has increased 6.7% q-o-q or 129% y-o-y to RM17.7mil. Its turnover has also increased by 9.2% q-o-q or 60.0% y-o-y to RM289mil.

If we compared VS’ latest 4 quarters with the preceding 4 quarters, we can see that its net profit has doubled from RM20.7mil to RM42.0mil, while turnover increased by 46% from RM668mil to RM978mil. EPS has similarly doubled from 20.7 sen to 42.0 sen.

Based on its trading price of RM3.38 as at 11.00 am today & its EPS of 42.0 sen, VS is now trading at a PE of 8.0 times. This is considered inexpensive in view of VS’ strong growth.

The share price has run quite a bit since I highlighted the potential of this stock (go here). The last 4 weeks' price run-up is very sharp (see the chart below). If the price weakened back to RM3.00-3.20, you may want to gain entry into this growth stock.

Chart: VS' weekly chart as at June 28 (courtesy of Quickcharts)

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