Kianjoo- bottom-line boosted by one-off gain

Result Update

For QE30/9/2012, Kianjoo's net profit increased by 53% q-o-q but declined by 1% y-o-y to RM28 million while revenue dropped by 8% q-o-q but rose by 1% y-o-y to RM280 million. The increased net profit q-o-q was attributable to the gain on disposal of a subsidiary of RM8.1 million. If this one-off item is excluded, the net profit only increased by 8.5% q-o-q & dropped by 30% y-o-y to about RM20 million.


Table: Kianjoo's last 8 quarterly results


Chart 1: Kianjoo's last 24 quarterly results

Valuation

Kianjoo (closed at RM2.18 yesterday) is now trading at a PE of 12 times (based on last 4 quarters' EPS of 18 sen- adjusted for one-off gain). At this multiple, Kianjoo is deemed fully valued.

Technical Outlook

Kianjoo broke its strong horizontal support at RM2.25 yesterday. Its next support will be the psychological RM2.00 mark which coincides with the uptrend line, S-S1.


Chart 2: Kianjoo's monthly chart as at Nov 22, 2012_2.45pm (Source: Tradesignum)

Conclusion

Based on full valuation & weaker technical outlook, Kianjoo is rated either a HOLD or a trading SELL.

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, Kianjoo.