Friday, April 26, 2013

Daiboci- bottom-line improved marginally

Result Update

For QE31/3/2013, Daiboci's net profit rose 14% q-o-q or 39% y-o-y to RM7.1 million while revenue was mixed, up 7% y-o-y but declined marginally by 1% q-o-q to RM74 million. The increased net profit was due to better performance from its two segments, where the Property segment recorded higher pre-tax profit of RM324k in QE31/3/2013 from a mere RM35k in QE31/12/2012 and the Packaging segment saw a small drop in revenue from RM72.9 million to RM71.6 million but a better pre-tax profit of RM9.18 million as compared to RM8.65 million in the immediate preceding quarter (due to favorable sales mix and lower raw material cost).

Table: Daiboci's last 8 quarterly results

Chart 1: Daiboci's last 22 quarterly results


Daiboci (closed at RM3.10 yesterday) is now trading at a PE of 13.2 times (based on last 4 quarters' EPS of 23.48 sen). At this PE, Daiboci is deemed fairly valued, with limited upside.

Technical Outlook

Daiboci broke above its recent high of RM2.88 yesterday. This indicates that the stock may continue with its current uptrend.

 Chart 2: Daiboci's daily chart as at April 25, 2013 (Source: quickcharts)

Chart 3: Daiboci's weekly chart as at April 25, 2013 (Source: quickcharts)


Based on good financial performance & positive technical, Daiboci remains a good stock for long-term investment. However, it is trading at its fair value where its medium-term upside potential may be limited.

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, Daiboci.

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