For QE30/6/2013, Gtronic's net profit increased by 39% q-o-q or 46% y-o-y to RM14.1 million while its revenue increased by 10% q-o-q or 23% y-o-y to RM85 million. the company attributed its improved top-line and bottom-line to higher volume loadings from customers, better economy of scale, and improved productivity improvement & cost control program.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi8agH65vrhI-qXa7V2T_gHgEUfuKP6UtviXJaip_4Yp8FX2KH3-ZxVliFxUgQaMXBYpbFH50xm_3sl_LkbnwrnGl-8D_Zb_fkMzwqujVSBHOP96WFtC2WZhg4pI4HuReDD_2uu/s320/Gtronic's+8Qs_20130630.gif)
Table 1: Gtronic's last 8 quarterly results
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEihcVxtuJnZSXRe-narUzyJuvuQHpbOduPJT1j9E65XcXqFVGs8Jrsn8AWdHRj-FF4RDs9aLOAZnlc9LwVRu7Cic93Ks1BxoRunvxgJ0IMHN1B6J2PF6mMcNA1CtxpXG9d3zRK0/s320/Gtronic's+25Qs_1.gif)
Chart 1: Gtronic's last 25 quarterly results
Valuation
Gtronic (closed at RM2.60 yesterday) is now trading at a PE of 14 times (based on last 4 quarters' EPS of 18 sen). At that PE multiple, Gtronic is deemed fairly valued.
Technical Outlook
Gtronic has been in a steady uptrend after breaking above its strong horizontal line at RM1.30 in July 2012. The stock is presently trading in overbought territory and could face short-term profit-taking.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhcsqo7J2FcE-RdXRNsqMrlSnfB9Bf1DOdooGSlboBScsOcHHdjI7ThPOpeBlcogm4xnqlTjrF0qoOz_EVCc9HLHmSEEjTaliTVLYlFufRAgcYLeob9idcaroqY-isz1-6rXTxh/s320/Gtronic+w20130730.gif)
Chart 1: Gtronic's daily chart as at July 30, 2013 (Source: Quickcharts)
Conclusion
Based on good financial performance, Gtronic could be a good stock for long-term investment. Its upside potential is limited as it is trading at fair valuation.
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, Gtronic.