SEG has reported its results for QE30/9/2011. Its net profit increased by 66% y-o-y to RM18 million while its turnover increased by 24% y-o-y to RM70 million. When compared to the immediate preceding quarter (QE30/6/2011), the bottom-line & top-line were relatively unchanged (which is expected as the college is well into its term).
Table: SEG's last 8 quarterly results
Chart 1: SEG's last 14 quarterly results
Valuation
SEG (closed at RM1.86 yesterday) is now trading at a PE of 14.3 times (based on last 4 quarters' EPS of 13.15 sen). At this PE multiple, SEG is deemed fully valued.
Technical Outlook
SEG has just broken above its medium-term downtrend line at RM1.70. With this breakout, the stock may revisit its recent high of RM2.10.
Chart 2: SEG's weekly chart as at Nov 9, 2011 (Source: Quickcharts)
Conclusion
While SEG could be a good stock for long-term investment, its upside potential is limited for the medium-term due to its valuation. However, the technical outlook has turned positive and this means that the stock could see a small rally to retest its high at RM2.10.
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