Daiboci- bottom-line increased despite lower top-line

Results Update

For QE30/9/2012, Daiboci's net profit increased by 8% q-o-q or 52% y-o-y to RM6.9 million while revenue declined by 7% q-o-q or 3% y-o-y to RM65.7 million. The decline in revenue was attributed to the phasing out of the property business (see Chart 1).


Table 1: Daiboci's last 8 quarterly results


Chart 1: Daiboci's last 6 quarterly segmental performacne

Bottom-line improved due to better waste control for packaging segment while there is no contribution from property segment, which was being phased out


Chart 2: Daiboci's last 20 quarterly results

Valuation

Daiboci (closed at RM2.62 on Friday) is trading at a PE of 12 times (based on last 4 quarters' EPS of 21.65 sen). Daiboci's dividend yield is quite attractive at 4.8%. At these multiples, Daiboci is deemed fairly valued.

Techncial Outlook

Daiboci surpassed its February 2010 high of RM2.28 in early October. The current upleg could possibly send the stock to a high of RM3.00.


Chart 3: Daiboci's weekly chart as at Oct 25, 2012 (Source: Quickcharts)

Conclusion

Based on good financial performance & bullish technical outlook, Daiboci is a good proxy to gather a foothold in the consumer sector.

Note: 
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Daiboci.