GAB announced its results for QE31/3/2011 yesterday. Net profit dropped 24.2% q-o-q to RM49.0 million on the back of a 16.5%- decline in turnover to RM352 million. The lower turnover was attributed to the timing of Chinese New Year. This is also the reason why its turnover was lower y-o-y. However, its net profit was higher by 5.4%, mainly due to supply chain efficiencies.
Table 1: GAB's last 8 quarterly results
Chart 1: GAB's last 21 quarterly results
Valuation
GAB (closed at RM10.24 yesterday) is now trading at a PE of 16.5 times (based on the last 4 quarters' EPS of 62 sen). Being a blue chip, GAB could potentially trade up to a PE multiple of 18 times- thus giving a target of RM11.16 or an upside of 9%.
Technical Outlook
GAB is rising slowly in an upward channel, with support at RM10.00 & resistance at RM10.50.
Chart 2: GAB's daily chart as at May 6, 2011_11.30am (Source: Quickcharts)
Conclusion
Based on positive technical outlook, I would rate GAB a HOLD.
Hi Alex,
ReplyDeleteCan I find out if Kenanga Global trading account allows the purchase of US ETFs, e.g. ETFs traded on the NYSE, for example? Most international trading services with local banks do not.
Hi mydma
ReplyDeleteYou can buy ETFs via Kenanga's Global Trading platform. I have done it for some for my clients.