Tuesday, November 26, 2013

Unimech- may have a bullish breakout


Unimech group designs, fabricates, installs, and maintains boilers, combustion equipment, and piping systems. It also manufactures rubber flexible joint and mould products, pressure gauges and thermometer, and metal stamped parts.

For FYE31/12/2012, it reported a net profit of RM22 million (or, a pre-tax profit of RM34 million) on a revenue of RM220 million (here). For 1H2013, it reported a net profit of RM10.8 million (or, a pre-tax profit of RM12.6 million) on a revenue of RM108 million (here). Annualized EPS for FY2013 is 18 sen. As such, the stock is now trading at a PE of 9.5 times (based on share price of RM1.71 now)

The stock has broken above the ascending triangle at RM1.60, albeit on very thin volume. The warrant- with exercise price of RM1.50 & expiring in September 2018 (here)- has surpassed its recent high of RM0.33.

  
Chart 1: Unimech's daily chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)

 
Chart 2: Unimech's weekly chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)

 
Chart 3: Unimech-WA's daily chart as at Nov 26, 2013_2.50pm (Source: Quickcharts)

Based on technical breakout, Unimech & its warrant could be a trading BUY.

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, Unimech.

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2 comments:

  1. cykoayWednesday, November 27, 2013 8:44:00 AM

    Hi Alex,
    Just to check with you if I were the Unimech-LA holder, is that mean to convert to mother share right now , according to its LA profile, "1 ICULS: 1 Unimech" + conversion price of RM1.00, i need to fork out addtional RM1 for every share I wish to convert? Please advise. Thanks.

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  2. Alex LuWednesday, November 27, 2013 9:01:00 AM

    HI cykoay,

    Your reading is correct. The reason why the ICULs trade at a discount to the share is because the period for conversion. To wit:

    "The ICULS may be convertible into new Unimech Shares on any market day within a period from the third (3rd) anniversary date of the issuance of the ICULS up to and including the last market day of the period of five (5) years from (and including) the date of the issuance of the ICULS"

    ReplyDelete