Panasonic Malaysia ('Panamy') is involved in the business of sales, service and marketing for the Panasonic brand of electrical and electronic in Malaysia.
Recent Financial Results
The table & Chart 1 below shows Panamy's steady performance was affected by the recent economic slowdown. Panamy normally suffered a drop in turnover & profit in its 4th quarter due to higher sale in the preceding quarter, which coincedes with the calender year-end. For FY2009, the drop was aggravated by a drop in consumer confident due to the Global Financial Crisis.
Table: Panamy's last 8 quarterly results
Chart 1: Panamy's 9 quarterly results
Valuation
Panamy (closed at RM12.30 on July 31) is now trading at a trailing PE of 15 times (based on last 4 quarters' EPS of 82 sen). Assuming a dividend payout of 105 sen, its dividend yield is about 8.5%. Panamy is trading near its fair value but it may still command some following due to its attractive dividend yield.
Note: Panamy will be paying a dividend of 90 sen soon. The entitlement date of August 24 while the payout date is on September 18.
Technical Outlook
Panamy has been trapped in an expanded triangle (or, trading band) between RM10.00 & RM12.00 since June 2007. Assuming it's an expanded triangle, Panamy has broken to its upside last Friday. The breakout was however not accompanied by increased volume. Higher volume was not seen in the morning session today. Keep an eye on this stock because if the breakout gather pace, the potential target for this upside move is RM14.00-14.50.
Chart 2: Panamy's weekly chart as at August 3, 2009_12.00noon (Source: Quickchart)
Conclusion
Based on potential technical breakout, Panamy could be a good trading BUY.
hi alex,
ReplyDeletecan u please advice jti? it's high divden yield ctr too..n it keep on rising these few days. can i go in now?
Hi Lofan,
ReplyDeleteIf you look at the 2-year chart of JTInter (try using Tradesignum), you will see that the stock has risen sharply in April-May 2008 (ahead of the payout of a 43 sen dividend) & July 2008 (ahead of the announcement of capital repayment of 75 sen). We saw the sharp rise in April-May 2009 (the payout of the capital repayment of 75 sen). The current rally may have something to do with an announcement of a hefty dividend. Even if this is true, the rally may have substantially factored in this dividend payout, so the upside is now limited. In fact, there is a risk that the share price may correct after the announcement.
Hi Alex,
ReplyDeleteCan you comment about SAAG? is tat can buy it now?
Hi Teh,
ReplyDeleteSAAG is in a short-term downtrend after the sharp rally off its recent low on March 17. In any rebound, SAAG will encounter resistance from the horizontal line of RM0.30 & the short-term downtrend line of RM0.34.
However, an uptrend line can be drawn for SAAG from its recent low made on March 17. That uptrend line will provide support at RM0.26.