For QE30/9/2012, Huayang's net profit increased by 3.6% q-o-q or 22.8% y-o-y to RM17.1 million while revenue increased by 6% q-o-q or 36% y-o-y to RM104 million. The improvement was attributed to steady construction progress recognition for its apartment projects in Klang Valley (One South) and its on-going projects in Taman Pulai Tasek at Johor Bahru and Bandar Universiti Seri Iskandar in Perak.
Table: Huayang's last 8 quarterly results
Chart 1: Huayang's last 17 quarterly results
Valuation
Huayang (closed at RM1.61 yesterday) is now trading at a PE of 3.8 times (based on last 4 quarters' EPS of 41.91 sen). At that multiple, Huayang is deemed very attractive.
Technical Outlook
The stock is still in an uptrend, with support at the 50-day EMA line at RM1.49 & 100-day EMA line at RM1.41. Since the stock has broken above the recent high of RM1.60, there is a fairly high chance that it is about to move to the next level, possibly RM1.80.
Chart 2: Huaynag's daily chart as at Oct 17, 2012 (Source: Quickcharts)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Huayang is a good stock for long-term investment.
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, Huayang.
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