Fimacor's net profit increased by 62% q-o-q or 17% y-o-y to RM27 million while turnover increased by 33% q-o-q or 12% y-o-y to RM91 million. The improved financial performance was attributable to higher sale of oil palm products.
Table: Fimacor's last 8 quarterly results
Chart 1: Fimacor's last 15 quarterly results
Valuation
Fimacor (closed at RM5.43 today) is now trading at a PE of 5.3 times (based on last 4 quarters' EPS of 104 sen). At this multiple, Fimacor is deemed attractive.
Technical Outlook
From the chart below, we can see that Fimacor has broken below its uptrend line support at RM6.00. This bearish breakdown could signal the end of its uptrend which started in early 2009.
Chart 2: Fimacor's weekly chart as at August 8, 2011 (Source: Tradesignum)
Conclusion
This is a case where the fundamental analysis contradicts with the technical analysis. The likely outcome is that the stock would trade sideway for a while & a new price direction would then reveal itself. I believe the outcome would likely hinge on the price direction of CPO.
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