For QE31/12/2007, Kwantas' net profit jumped by 157% q-o-q or 347% y-o-y to RM54.4 million. Turnover jumped 82% q-o-q or 134% y-o-y to RM1.02 billion. The improvement in both topline & bottomline was attributable to increased CPO prices, better product margin & higher volume of palm & soya oil processed by its China operation.
Note: Kwantas carried out a 2:1 share split in December 2007.
Based on last Friday's closing price of RM4.14, Kwantas is now trading at a trailing PE of 10 times (using its last 4-quarter EPS of 41 sen) or at a Price to Book of 1.8 times (using its NTA per share of RM2.32 as at 31/12/2007). However, if the better performance of QE31/12/2007 can be sustained going forward, Kwantas' forward PE could be much lower- as low as 6 times.
Chartwise, Kwantas is in an uptrend line, with support at RM4.00-4.10.
Chart: Kwantas' daily chart as at February 22, 2008 (courtesy of Quickcharts)
Based on its exciting prospective earning, Kwantas could be a good BUY for the medium-term.
You may get more information on Kwantas' business operations from this article in Starbiz.
I think BKAWAN is one of the most valuable plantation stocks with PE less than 9 times. Earning should be higher coming quarter in view of higher CPO.
ReplyDeleteWhat's more attractive about this counter is that each BKAWAN is holding about 1.14 shares of KLK and yet it is trading at about 0.6 time of KLK's price. Furthermore, BKAWAN has it has its own profitable business besides holding KLK