For QE31/1/2013, Apollo's net profit increased by 21% q-o-q or 64% y-o-y to RM9.3 million while revenue increased by 9% q-o-q or 14% y-o-y to RM57 million.
Table 1: Apollo's last 8 quarterly results
We can see from Chart 1 below that revenue from both the domestic & export markets had increased for the 9-month ended 31/1/2013 as compared to the same period last year. Segmental result shows a huge jump in the contribution from the export market.
Chart 1: Apollo's Segmental Performance for 9-month for FY2013, FY2012 & FY2011
From Chart 2 below, we can see that Apollo's bottom-line had been rising over the past 2 years due to rising revenue (or, sales) as well as rising profit margin. All in all, a very healthy development for this company.
Chart 2: Apollo's last 22 quarterly results
Valuation
Apollo (at RM3.74 as at 3:00pm) is now trading at a PE of 9 times (based on last 4 quarters' EPS of 42 sen). At this PE, Apollo is deemed fairly attractive. It could command a PE of 10-12 times.
Technical Outlook
Apollo is in a gradual long-term uptrend. It has just surpassed its 2010 high of RM3.50. Thus, the stock is poised to continue in its uptrend, with its next resistance at RM4.00.
Chart 3: Apollo's monthly chart as at Mar 28, 2013 (Source: Tradesignum)
Conclusion
Based on good financial performance, attractive valuation and interesting technical outlook, Apollo could be a good stock for a 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, Apollo.
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