Friday, November 02, 2007

Unisem's net profit for QE30/9/2007 soared

Unisem announced its results for QE30/9/2007 yesterday. The announcement shows that Unisem's net profit has increased by 13% q-o-q or 73% y-o-y to RM31.1 million while turnover has jumped by 89% q-o-q or 71% y-o-y to RM304.5 million. This quarterly results clearly shows the positive contribution from its recently acquired subsidiary, Advanced Interconnect Technologies Ltd (with the acquisition was completed on July 18).

While the net profit has grown by 13% q-o-q, we must bear in mind that the net profit for QE30/6/2007 was pushed up by reversal of deferred taxation expenses (leading to a positive tax credit of RM5.1 million).

Assuming that Unisem can repeat the same performance, its annual EPS could jump to 26.4 sen. Based on today's closing price of RM1.79, Unisem is now trading at a PE of 6.8 times. This is deemed very undemanding.

Technically speaking, the share price is still in a downtrend. The downtrend would be deemed to be over when the share price has surpassed the RM1.94/95 level.

Chart: Unisem's monthly chart as at November 1 (courtesy of Quickcharts)

Nevertheless, based on attractive valuation, Unisem would be a BUY for long-term investment.

No comments: