For QE31/12/2012, Huayang's net profit increased by 17% q-o-q or 37% y-o-y to RM20 million while revenue was unchanged q-o-q but rose 24% y-o-y to RM105 million. The improved performance was due to steady recognition of construction work done for projects such as One South in the Klang Valley, Taman Pulai Indah & Taman Pulai Hijau in Johore and Bandar Universiti Seri Iskandar in Perak.
Table: Huayang's last 8 quarterly results
Chart 1: Huayang's last 27 quarterly results
Valuation
Huayang (at RM1.61 now) is trading at a PE of 3.9 times (based on last 4 quarters' EPS of 42 sen). At this PE, Huayang is deemed attractive.
Technical Outlook
Huayang is in a steady uptrend, with resistance at RM1.70. Its support is goven by the 20-week EMA line at RM1.57.
Chart 2: Huayang's weekly chart as at Jan 25, 2012_9.30am (Source: quickcharts)
Conclusion
Based on good financial performance, attractive valuation & positive technical outlook, Huyang 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.
This is one of the companies which look to be doing well but whose share prices are being valued at a discount by the market. Its PER is extremely low and this counter looks to be a real bargain.
ReplyDeleteBut that's the problem with the stockmarket - a counter is never guaranteed to go up even if it is doing well. It's not surprising therefore that major shareholders would want to take their companies private when they see their shares being continuous ignored and undervalued. It's even more grating when they see some deadbeat companies running losses almost year having their prices chased up by investors and speculators.
Hi Alex,
ReplyDeleteCould you please comment about the SBC Corp? Kiara East project, response looks very good!