Huayang- top-line & bottom-line increased

Results Update

Huayang has announced its results for QE30/6/2012. Its net profit increased by 26% q-o-q or 43% y-o-y to RM16.5 million while turnover rose by 16% q-o-q or 59% y-o-y to RM98 million.


Table: Huayang's last 8 quarterly results


Chart 1: Huayang's last 16 quarterly results

Valuation

Huayang (closed at RM1.97 yesterday) is now trading at a PE of 4.9 times (based on last 4 quarters' EPS of 40 sen). At this PE, Huayang is deemed attractive.

Technical Outlook

Huayang is in a steady uptrend since breaking above the 'horizontal' resistance at RM0.95.


Chart 2: Huayang's monthly chart as at July 18, 2012 (Source: Tradesignum)


Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Huayang is rated a good stock for long-term investment.