WTHorse has just announced its results for QE31/3/2010. The first calender quarter is usually a quiet period due to the slow construction activities during the long lunar new year break. This is reflected in the q-o-q decline in turnover & net profit by 15% & 44%, respectively. However, its net profit increased by 40% y-o-y on the back of a 14%-increase in turnover.
Table 1: WTHorse's last 8 quarterly results
Chart 1: WTHorse's 19 quarterly results
Valuation
WTHorse (closed at RM1.54 yesterday) is trading at a PER of 5.5 times (based on last 4 quarters' EPS of 28 sen). At this multiple, WTHorse is deemed inexpensive. If we were to value it at a PER of 8 times, its fair value could be about RM2.24.
Technical Outlook
WTHorse broke above its long-term downtrend line at RM1.05 in January 2009. The 20-week SMA line (presently at RM1.46) is a good proxy for a medium-term uptrend line for the stock. Immediate resistance is at RM1.70 & then RM1.88-90.
Chart 2: WTHorse's weekly chart as at May 12, 2010 (Source: Quickcharts)
Conclusion
Based on good financial performance, attractive valuation & good technical outlook, WTHorse is still rated a HOLD.
Hi Alex ,
ReplyDeleteHow about KKB after the Bonus in 12 May 2010,the share split will be in 24 May 2010,have this share good trading buy b4 24 May 2010?
Hi Phkoay,
ReplyDeleteSee my earlier post. I call a SELL INTO STRENGTH if/when the stock approaches the RM7.00 level. The all-time high is at RM7.30.
At the time of the post, the stock was trading at RM6.40. If you were gung-ho enough, you could have gone in then & made a bit. To get in now, you need more than MOJO. You gotta to be a bit reckless, like George W Bush!!!