Apollo- Bottom-line jumped

Result Update

For QE31/7/2013, Apollo's net profit increased 50% q-o-q or 34% y-o-y to RM11 million while revenue was mixed: up 5% q-o-q but lower by 2% y-o-y to RM57 million. Higher demand from both local and export markets had contributed to a q-o-q increase in revenue. The higher sales and the lower operating costs had contributed to the increase in profit.


Table 1: Apollo's last 8 quarterly results


Chart 2: Apollo's last 24 quarterly results

Valuation

Apollo (closed at RM4.14 on August 30) is now trading at a PE of 10 times (based on last 4 quarters' EPS of 43 sen). For a consumer stock, Apollo's valuation is deemed undemanding.

Technical Outlook

Apollo has been holding above RM4.00 for the past 3 months for the past 6 months. The RM4.00 mark will be the strong support for this stock.


Chart 2: Apollo's monthly chart as at Sep 2, 2013_3.00pm (Source: Quickcharts) 

Conclusion

Based on good financial performance, attractive valuation & still positive technical outlook, Apollo remained 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.