Ogawa World Bhd ('Ogawa') is involved in designing, marketing, retailing, distributing, and servicing of health care equipment and supplementary appliances. It provides a range of health and wellness equipment comprising various relaxation, therapeutic, fitness, diagnostic, and hygiene products.
Recent Financial Results
Ogawa's net profit increased by 256% q-o-q or 88% y-o-y to RM6.1 million, while turnover increased by 29% q-o-q or 14% y-o-y to RM47.7 million. The improved performance was attributable to higher sales & higher gross profit margin.
Table: Ogawa's last 8 quarterly results
Chart 1: Ogawa's last 8 quarterly results
Valuation
Ogawa (closed at RM0.44 last Friday) is now trading at a trailing PER of 6.4 times (based on last 4 qaurters' EPS of 6.9 sen). At this multiple, Ogawa is deemed fairly valued.
Technical Outlook
Ogawa is trying to break above the horizontal resistance of RM0.44. A break above that level could be the start of an upleg for this stock. Its immediate resistance is at RM0.51-52 & then at RM0.82.
Chart 2: Ogawa's weekly chart as at Aug 20, 2010 (Source: Quickcharts)
Conclusion
Based on improving financial performance & a possible upside break out above its horizontal resistance at RM0.44, Ogawa is worth tracking closely. If it succeed in breaking above the RM0.44 level with good volume, the stock could be a good trading BUY.
Thanks Alex for your comments and opinions
ReplyDeletehi alex. Proton annouce its 1st Q result with EPS 15.4sen. how u think ? Good or within expectation ??
ReplyDeleteProton share price is play up and down by EPF la. think no worth to keep, think to sell it. how u think ??
Hi wong
ReplyDeleteProton did better in QE30/6/2010. However, it still lags behind other car assemblers, such as TChong & UMW.
Technically speaking, it has good support at its 200-day SMA line at RM4.33 but faces strong resistance at RM4.80 & then RM5.00. You can make better use of your funds than having it tied down in Proton.
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ReplyDeleteHi Alex,
ReplyDeleteCan I have your opinions on Faber, technical and fundamental wise?
Thanks.
Hi TRULY MALAYSIAN
ReplyDeleteI will give you the technical outlook for Faber. I will cover the fundamental aspect at another occasion.
Technically, Faber is still in an uptrend line, with support at RM2.50-55. The indicators are fairly weak now, which means that it may slide to the uptrend line. If you are keen to buy, do it when the stock has found support at the uptrend line.