Based on the 8-quarters results below, Engtex's financial performance has improved significantly in the past 2 quarters. The increase in revenue and net profit were mainly due to "the strong market demand of its metal-related trading products and manufactured steel products in tandem with the uptrend in international and domestic metal prices".
If Engtex can maintain its last 2 quarters' performance, its full year's Basic EPS could be about 20 sen [or, Diluted EPS of 13.7 sen]. As such, Engtex (closed at RM1.11 yesterday) is now trading at a trailing PE of 5.6 times. While this may look inexpensive, this is higher than Hiaptek's trailing PE of about 3.7 times (based on Hiaptek's closing price of RM1.57 & annualized EPS of 42 sen [using last 2 quarters' EPS of 21 sen)]. For more on Hiaptek, go here.
Engtex share price has been rising steadily for the past one month, from a low of RM0.68 in July 7th (see Chart 1 below). What's more interesting is that the share price is poised to test the long-term downtrend line resistance at RM1.11-15 soon (see Chart 3 below). A break above that level (with good volume) would be very bullish for this stock. The next resistance would be the horizontal lines of RM1.35 & RM1.80.
Chart 1: Engtex's daily chart as at August 6th (source: Quickcharts)
Chart 2: Engtex's weekly chart as at August 6th (source: Quickcharts)
Chart 3: Engtex's monthly chart as at August 6th (source: Quickcharts)
While a break above RM1.11-15 could be bullish, one must take note that Engtex's share price has risen by 63% in a span of just one month. As such, this potential investment (or trade) should be viewed with caution & protective stop should be employed.
No comments:
Post a Comment