Zhulian- another great quarter!

Result Update

For QE31/8/2013, Zhulian's net profit increased 4% q-o-q or 40% y-o-y to RM40 million while revenue increased 17% q-o-q or 12% y-o-y to RM124 million. Revenue increased q-o-q due mainly to the increase in overseas sales. Net profit also increased q-o-q due to the increase in share of profit of equity accounted investee and increase in overseas sales.


Table: Zhulian's last 8 quarterly results


Chart 1: Zhulian's last 28 quarterly results 

Valuation

Zhulian (closed at RM4.01 yesterday) is now trading a PE of 13 times (based on last 4 quarters of 30.1 sen). Its PEG ratio is about 0.7 time (based on earning CAGR of at least 20%). As such, Zhulian is still deemed attractive.

Technical Outlook

Zhulian's uptrend continued after it broke above the horizontal line at RM2.90 in May (see this earlier post). The stock is likely to consolidate around the RM4.00 after its sharp rally in the past 2 months.


Chart 2: Zhulian's weekly chart as at Oct 16, 2013 (Source: quickcharts)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Zhulian is still a good stock for 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, Zhulian.