Boxpak- bottom-line improved further

Result Update

For QE30/9/2012, Boxpak's net profit increased by 15% q-o-q or 36% y-o-y to RM6.1 million while revenue was mixed- dropped 3% q-o-q but rose 6% y-o-y to RM65 million. The lower revenue was attributed to two reasons, firstly factory shutdown in Malaysia for Hari Raya and selling price adjustment in Vietnam. Despite lower revenue, profit increased due to better sale mix.


Table: Boxpak's last 8 quarterly results


Chart 1: Boxpak's last 20 quarterly results

Valuation

Boxpak (closed at RM2.18 yesterday) is now trading at a PE of 6.5 times (based on last 4 quarters' EPS of 33.35 sen). At this PE, Boxpak is deemed quite attractive.

Technical Outlook

Boxpak is still consolidating within a triangle, with upside resistance at RM2.35 & downside support at RM2.15. A breakout of this triangle will point the way forward for the stock.


Chart 2: Boxpak's weekly chart as at Nov 19, 2012 (Source: Quickcharts)

Conclusion

Based on good financial performance and reasonably attractive valuation, Boxpak is a good stock for medium-term investment. Its shar price performance will depend on whether the stock can break out of its triangle.

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, Boxpak.