Jobst: Top-line & Bottom-line improved

Result Update

For QE30/6/2014, JOBST's net profit increased by 29% q-o-q or 19% y-o-y to RM19.8 million while revenue increased by 8% q-o-q or 10% y-o-y to RM51.3 million. The q-o-q increase in revenue was mainly due to higher sales from online job posting services and dividends received from quoted investments in Hong Kong. In terms of profitability, pre-tax profit rose by 15.9% q-o-q mainly due to the aforementioned factor and the increase in the share of profit of associates.


Table: JOBST's last 8 quarterly results

 
 Chart 1: JOBST's last 33 quarterly results

Valuation

JOBST (closed at RM2.57 last Friday) is now trading at a PE of 25 times (based on last 4 quarters' EPS of 10.3 sen). At this multiple, JOBST is deemed fully valued.

Technical Outlook

JOBST has been moving sideway for the past 6 months, with support at RM2.40. If we ignore the spike-up in February this year, then we can see that the resistance is at RM2.50-2.55. A breakout above that level could signal the continuation of its prior uptrend.

 
Chart 2: JOBST's weekly chart as at Aug 22, 2014 (Source: Tradesignum)

Conclusion

Based on commanding position in the market & satisfactory financial performance, JOBST is a good stock to hold for long-term investment. However, its valuation is a bit stretched and until there is an upside breakout above RM2.55 (preferably RM2.60), the stock will continue to trade sideways.

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, JOBST.