HPI reported another good set of results

HPI, which manufactures corrugated carton & plastic packaging products, reported a better results for 2Q2008 (or, QE30/11/2007). For the period under review, HPI's net profit increased 10.6% q-o-q or 30.4% y-o-y to RM4.0 million. Its turnover of RM74.3 million was up slightly when compared to 2Q2007 turnover of RM70.8 million but was lower than the immediate preceding quarter's turnover of RM78.0 million.



Based on the last 4 quarter's EPS of 30.3 sen & today's closing price of RM1.01, HPI is now trading at a PE of 3.3 times.


Chart: HPI's daily chart as at January 9 (courtesy of Tradesignum.com)

From the above chart, it seems that HPI is trading near its medium-term uptrend line support of RM0.95.

Based on attractive valuation & nice technical picture, HPI is a good BUY for the medium-term.