Prlexus: Time to take profit!

Results Update

For QE30/4/2014, Prlexus's net profit dropped 67% q-o-q by 17% y-o-y to RM2.2 million while revenue was mixed- dropped 37% q-o-q but rose 14% y-o-y to RM53 million. Revenue dropped q-o-q from RM84.4 million to RM53.3 million due to lower revenue from the garment division. Net profit dropped q-o-q due to lower revenue and unrealised forex loss of RM1.7 million as compared to a unrealised forex gain of RM2.2 million in QE31/1/2014.

 
Table 1: Prlexus's last 8 quarterly results


Chart 1: Prlexus's last 23 quarterly results

Valuation

Prlexus (closed at RM1.81 yesterday) is now trading at a PE of 8.6 times (based on last 4 quarters' EPS of 21 sen). At this PE, Prlexus is deemed fully valued.

Technical Outlook

Prlexus is in a long-term uptrend. The stock should have good support at the 10-week SMA line and 20-week EMA line at RM1.62 & RM1.50 respectively.


Chart 2: Prlexus's weekly chart as at Jun 23, 2014 (Source: Tradesignum)

 Conclusion

Based on weaker financial performance & full valuation, it may be time to take profit on Prlexus. However, there is no need to rush to sell as the technical outlook for Prlexus is still positive. 

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, Prlexus.