Tuesday, October 22, 2013

Fibon- a cheap smallcap

Fibon Bhd ('Fibon') is involved in the formulation of polymer matrix fibre composites as well as in the manufacture and sales of electrical insulators, electrical enclosures, and meter boards.

Fibon reported a net profit of RM4.9 million for FYE31/5/2013 on a revenue of RM16.6 million. This compared with a net profit of RM4.5 million on a revenue of RM16.9 million last year. As at 31/5/2013, the company's financial position is deemed healthy with no borrowings; total liabilities of RM1.4 million versus shareholders' fund of RM31.8 million. Cash in hand is about RM20 million or RM0.20 per share.

Fibon is now trading at a PE of 10 times (based on FY2013 EPS of 5 sen & current price of RM0.52).

Fibon broke above its downtrend line at RM0.30 in mid-May. Since then, it has been moving sideway, with horizontal resistance at RM0.45. Yesterday, it broke above that resistance.

With this breakout, Fibon is expected to begin its upleg. Its next resistance is at RM0.70.


Chart: Fibon's weekly chart as at Oct 22, 2013_2.45pm (Source: Quickcharts)

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, Fibon.
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2 comments:

  1. JimTuesday, October 22, 2013 9:21:00 PM

    Hi Alex,

    Can you comment on MUDA?

    Thanks.

    ReplyDelete
  2. Alex LuWednesday, October 23, 2013 8:49:00 AM

    Hi Jim,

    Muda broke above its long-term downtrend line at RM0.70 in May this year. Since then, it has been moving sideway with resistance at the horizontal line RM0.83. Yesterday, it broke above that resistance as well as the horizontal line at RM0.87. It looks like it may continue with its upleg and possibly going to RM1.00 mark.

    Financial results are nothing to shout about. Last quarter, its net profit jumped due to an exceptional or extraordinary gain of RM17.42 million gain from the disposal of equity interest in KL Resources Pte Ltd. If that is excluded, Muda's bottom-line actually declined.

    Assuming an earning of 8 sen, the stock is now trading at a PE of 11 times. However, its PB is low at only 0.4 time.

    It could be a trading BUY based on technical consideration.

    ReplyDelete