Wednesday, December 19, 2007

VS' net profit grew at slower pace

VS' net profit increased by 3.0% q-o-q or 30.9% y-o-y to RM21.1 million, while its turnover increased by 4.7% q-o-q or 19.0% y-o-y to RM290 million. For the past 3 quarters, you would notice that VS' turnover was holding steady at about RM280-290 million, while net profit was holding steady at about RM20-21 million (for past 2 quarters).

VS has experienced a very rapid growth in the past 2 years, but the past few quarters may have shown that a slowdown may have occurred. While this maybe a good thing for any company, investors might become jittery & decide to take some profit. Nevertheless, it is heartening to note that VS' share price is still not too far off its recent high of RM4.20-26. It may not be a bad idea to cash in some profit from this investment (see earlier post). Admittedly, the chart has not given any SELL signal at this moment, but a sharp correction after its recent sharp rise cannot be ruled out.

Chart: VS' weekly chart as at December 18 (courtesy of Quickcharts)

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