APM- bottom-line boosted by Yen devaluation

Result Update

For QE31/3/2013, APM's net profit increased by 29% q-o-q but dropped 14% y-o-y to RM28 million while revenue dropped 5% q-o-q but increased by 3% y-o-y to RM285 million.  The improved bottom-line on q-o-q basis was mainly due to "weakening of Japanese Yen against Ringgit at end of 2012 resulted to devaluation of Japanese Yen denominated inventory in 4Q12".


Table: APM's last 8 quarterly results


Chart 1: APM's last 25 quarterly results

Valuation

APM (closed at RM5.44 yesterday) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 55 sen). At this PE, APM is deemed fully valued.

Technical Outlook

APM broke above the horizontal line at RM5.25. It may revisit its January 2013 high of RM6.00.


Chart 2: APM's weekly chart as at May 15, 2013 (Source: quickcharts)

Conclusion

Despite the improvement in its financial performance, APM's upside is deemed limited as it is trading at its full value. Technically speaking, the stock may continue to rise & retest its recent high at RM6.00. For those holding the stock, my recommendation is Sell into Strength if the stock approaches the RM6.00 mark.

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, APM.