KKB has just announced its results for QE30/9/2010. Its net profit increased by 73% q-o-q or 123% y-o-y to RM23.3 million while turnover increased by 9% q-o-q or 40% y-o-y to RM68.6 million.
Table 1: KKB's last 8 quarterly results
Chart 1: KKB's 12 quarterly results
Valuation
KKB (at RM2.08 as at 11.30am this morning) is trading at a trailing PE of 7.9 times (based on last 4 quarters' EPS of 26.3 sen). At this multiple, KKB is reasonably valued. It can potentially trade up to a PE of 9-10 times- giving the stock a potential upside of 30-55 sen.
Technical Outlook
KKB has been consolidating in a triangle ('ABC'). This morning, it broke above the triangle at RM1.98-2.00. It also broke above the psychological-cum-horizontal resistance at RM2.00-2.02. Its immediate resistance would be the recent high of RM2.18.
Chart 2: KKB's weekly chart as at Nov 12, 2010_9.45am (Source: Quickcharts)
Conclusion
Based on good financial performance, reasonable valuation & bullish technical breakout, KKB could be a good trading BUY. However, you should exercise careful discretion in any trade given the current weak market condition.
Note: Previous posts (here & here).
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