Results Update
Panamy has just announced its results for QE30/6/2011. Its net profit increased by 28% q-o-q but declined by 3% y-o-y to RM19 million while its turnover increased by 47% q-o-q or 8% y-o-y to RM222 million. The increased sales was attributed to higher domestic sales & transfer of manufacture & sales of fans from China to Malaysia.
Table: Panamy's last 8 quarterly results
Chart 1: Panamy's last 15 quarterly results
Valuation
Panamy (closed at RM23.70-today) is now trading at a PE of 17.6 times (based on last 4 quarters' EPS of 135 sen). At this multiple, Panamy could command a PE of 18 times. As such, Panamy is nearly fully valued.
Technical Outlook
Based on the chart below, I believe Panamy's support is at the 10-week SMA line of RM21.50, which coincides with the horizontal line of RM21.00-21.50. Its resistance is the recent high of RM25.00.
Chart 2: Panamy's weekly chart as at August 8, 2011_plotted on log scale (Source: Tradesignum)
Conclusion
Based on limited upside from valuation angle, I would maintain my earlier rating for this stock, which is to sell into strength.
The past few days Bursa experience some turbulence, with some buying and selling opportunities.
ReplyDeleteWhat will the market be in the next few weeks.
Hope U can comment on the market direction.
Hi Ahmad Rozian
ReplyDeleteI believe we have made a top & we are now in the bear rally stage, which could last for a few weeks.