UMW- improved its bottom-line

Results Update

For QE30/9/2012, UMW's net profit rose 33% q-o-q or 104% y-o-y to RM299 million while revenue was mixed- rose 7.4% y-o-y but declined 4.2% q-o-q to RM3.96 billion.


Table 1: UMW's last 8 quarterly results

The improved bottom-line was attributable to substantially better results for the Oil & Gas segment. The same can be said for the Automotive segment which continued to improve. However, the Equipment segment was mixed- better than last year but was lower compared to the immediate preceding quarter.


Table 2: UMW's segmental performance for 9-month ended 30/9/2012


Chart 1: UMW's last 22 quarterly results 

Valuation

UMW (closed at RM10.08 at the end of the morning session) is now trading at a PE of 15 times (based on last 4 quarters' EPS of 68.02 sen). At that multiple, UMW is deemed fairly valued.

Technical Outlook

UMW is rising in a long-term upward channel, with support at RM7.00 and resistance at RM14.00.


Chart 2: UMW's weekly chart as at Nov 23, 2012 (Source: Tradesignum)

Conclusion

Based on good financial performance & positive technical outlook, UMW is still a good stock for long-term investment. Its upside potential is limited as it is fairly valued.

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, UMW.