Tong Herr reported higher net profit for QE30/6/2007

Tong Herr has just announced its results for QE30/6/2007. Its net profit increased by 30.5% q-o-q or 122.5% y-o-y to RM24.7 million while its turnover increased by 25.3% q-o-q or 118.7% y-o-y to RM139.5 million.

Tong Herr’s last 4 quarterly result is substantially better than the preceding 4 quarterly result, with net profit jumping 196% from RM28.1 million to RM83.1 million, while turnover more than doubled from RM207.8 million to RM442.8 million. EPS has also jumped from 33 sen to 98 sen during these periods.

Based on its closing price of RM5.85 for today & last 4 quarter’s EPS of 98 sen, Tong Herr is now trading at a PE of 6.0 times.

Technically, Tong Herr is still in an uptrend line, with support at RM4.80. In addition, it has a strong horizontal support at RM5.00.

Chart: Tong Herr' weekly chart as at August 8 (courtesy of Quickcharts)

Based on cheap valuation & good technical outlook, Tong Herr is a good stock to invest in for the long term.