For QE30/6/2014, Tomypak's NP dropped 46% q-o-q or 77% y-o-y to RM0.8 million while revenue eased back by 8% q-o-q or 11% yo-y to RM51.3 million.
For 1HFY14, Tomypak recorded a lower PBT of RM3.7 million against the PBT of RM9.7 million in the previous corresponding period, mainly due to lower sales in local market coupled with a decline in profit margin due to competition in the export market and also increased cost of production arising from higher energy and labour cost.
Table 1: Tomypak's last 8 quarterly results
Chart 2: Tomypak's last 27 quarterly results
Valuation
Tomypak (closed at RM1.30 yesterday) is now trading at a demanding PE of 15 times (based on last 4 quarters' EPS of 8.76 sen). Its dividend yield is quite attractive at 5.4%.
Technical Outlook
Tomypak has been trapped within a triangle for the past 1 year. At the time of writing this post, Tomypak was trading at RM1.23. This means that the stock has broken to the downside of the triangle- a bearish development.
Chart 2: Tomypak's daily chart as at Aug 13, 2014 (Source: Tradesignum)
Chart 3: Tomypak's weekly chart as at Aug 13, 2014 (Source: Tradesignum)
Conclusion
Based on poor financial performance, full valuation & bearish technical outlook, Tomypak is now rated a SELL.
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, Tomypak.
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