For QE31/12/2012, QL's net profit dropped 14% q-o-q or 8% y-o-y to RM31.5 million while revenue was mixed- dropped 3% q-o-q but rose 8% y-o-y to RM537 million. The q-o-q decline in bottom-line was due to poorer results from the Integrated Livestock segment where revenue dropped RM31 million while pre-tax profit dropped by RM9 million. This had more than off-set the increase in revenue & pre-tax profit from the Palm Oil segment of RM15 million & RM2 million, respectively.
Table: QL's last 8 quarterly results
Chart 1: QL's last 19 quarterly results
Valuation
QL (closed at RM3.00 this morning) is now trading at a PE of 19 times (based on last 4 quarters' EPS of 15.83 sen). Based on this PE multiple, QL is deemed overvalued.
Technical Outlook
QL is now trading sideway, with horizontal support at RM3.00. Overhead resistance is at RM3.25.
Chart 2: QL's weekly chart as at Feb 22, 2013 (Source: quickcharts)
Conclusion
Based on weaker financial performance, unattractive valuation & unexciting technical outlook, QL is rated a REDUCE.
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, QL.
Hi Alex,
ReplyDeleteYou have rated Canone a good buy some weeks ago. With the recent fines on Canone Directors by Bursa Securities due to breaching of the Main LR over the UMA of the company shares, will this management integrity issue affect your rating on the company now? Thanks.
HI vincent chua
ReplyDeleteTo me, Canone's directors' failure to disclose is a sign of ignorance rather than the wish to hide something. This news will eventually break out and they were rather silly not to confirm it.
Nevertheless, ignorance is not a good thing for a company that is on the verge of joining the Big League.