Wednesday, October 09, 2013

LPI- bottom-line lifted by investment income


Result Update

For QE30/9/2013, LPI's net profit increased by 30% q-o-q or 27% y-o-y to RM60 million while revenue remained unchanged q-o-q but increased by 7% y-o-y to RM282 million. The q-o-q in net profit was mainly due to higher investment income received.


Table 2: LPIs last 8 quarterly results


Chart 1: LPI's last 30 quarterly results

Valuation

LPI (closed at RM15.44 yesterday) is now trading at a PE of 17.3 times (based on last 4 quarters' EPS of 89 sen). At this PE multiple, LPI is deemed fully valued.

Technical Outlook

LPI is in an uptrend line, SS.  In early July, it broke above the line connecting the recent high (AB) at RM14.80. Now the recent high of RM15.60 will act as the temporary resistance while the line, AB will act as a support (at RM14.96-15.00).


Chart 2: LPI's weekly chart as at Oct 8, 2013(Source: Quickcharts)
 
Conclusion

Based of good financial performance and positive technical outlook, LPI is rated a HOLD. However, its upside is deemed limited as the valuation is fairly demanding.
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, LPI.
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10 comments:

  1. ETThursday, October 10, 2013 2:57:00 AM

    hey,i'm a student who need to doing a share report. Can you kindly what is QE and how to calculate EPS and dividends?thx.

    ReplyDelete
  2. benThursday, October 10, 2013 12:42:00 PM

    Hi Alex,

    What do you think about TEXCHEM?
    Thanks

    ReplyDelete
  3. hngFriday, October 11, 2013 9:46:00 AM

    Hi Alex

    What is the technical view for YTLP after it break resistance level at RM 1.85, Will share price continue uptrend? What is the possible reason YTLP-WB still laggard behind with widen margin 5-6sen?

    ReplyDelete
  4. luckystock2Friday, October 11, 2013 11:28:00 AM

    Hi Alex ,
    Can you comment on MPI's latest technical outlook?
    Tx!

    ReplyDelete
  5. JimFriday, October 11, 2013 12:51:00 PM

    Hi Alex,

    Can you kindly comment on GUH?

    Will the proposed bonus issue exercise will boost up share price in near term?

    Thanks.

    ReplyDelete
  6. Alex LuMonday, October 14, 2013 1:24:00 PM

    Hi Ellba Tang

    I don't think I would do justice to the complicated topic of QE. I would suggest that you check out the Wikipedia write-up.

    On EPS and dividend(or, dividend per share?), it is normally given in the account.

    EPS is arrived at by dividing net profit attributable to shareholders by the number of outstanding shares.

    Dividend yield (presumably that's what you want) is arrived at by dividing dividend p.s. with the current share price.

    ReplyDelete
  7. Alex LuMonday, October 14, 2013 1:29:00 PM

    Hi ben

    TEXCHEM had a breakout of a long-term downtrend line at RM0.60 in March. It then rallied above the horizontal lines at RM0.65 & RM0.68 & zoomed past the horizontal line at RM0.85. It failed to reach the RM1.00 psychological level and it is now consolidating just below the RM0.85 mark. If it can stay above RM0.85, it may make another attempt at the RM1.00 mark but any further weakness, the rally for this stock may be over.

    ReplyDelete
  8. Alex LuMonday, October 14, 2013 1:31:00 PM

    Hi hng

    YTLP was very promising on Friday when it traded above the RM1.85. The only no-show was the YTLPpwr-WB which did not break above the RM0.62 mark.

    Now that the share is back below RM1.85, I fear that the play for this stock will take a breather.

    ReplyDelete
  9. Alex LuMonday, October 14, 2013 1:36:00 PM

    Hi luckystock2

    MPI is still in a long-term downtrend line, with resistance at RM3.10-3.15. In addition, it has to contend with the horizontal line at RM2.90.

    Assuming i can convincingly clear the downtrend line and also the horizontal line at RM3.20, its next resistance is at RM3.50.

    Despite my earlier post on semicon sector, I have to note that this sector is still very weak. However, I feel that the weakness of the sector is baked into the share price. So, any surprise will probably be on the upside. I rate MPI and, even, Unisem as a HOLD.

    ReplyDelete
  10. Alex LuMonday, October 14, 2013 2:27:00 PM

    Hi Jim

    GUH's bottom-line is recovering after a slow decline over the past 4 years. The improvement is due to the strong growth in the property segment as compared to the Printed Circuit Boards segment. Last 4 quarters' EPS is at 17 sen as compared to previous 4 quarters' EPS is at 22 sen. Thus its PE is now at 9-10 times- fairly reasinable.

    Chartwise, the stock is rising in an irregular upward channel. It is now pressing against the upper boundary of that channel. Unless a breakout happens soon, the stock may see a pullback.

    Based on slightly negative technical outlook & nearly full value, I think GUH deserves to be rated as a HOLD.

    ReplyDelete