Scientx: Bottom-line and top-line improved

Result Update

For QE31/7/2014, Scientx's net profit increased by 34% q-o-q or 61% y-o-y to RM48.8 million while its revenue was mixed, dropped by 3% q-o-q or 12% y-o-y to RM415 million. The improved bottom-line on a q-o-q basis was attributable to higher operating profit from both the consumer packaging products and property development divisions. However, consumer packaging products division's revenue dropped 6% q-o-q.


Table 1: Scientex's last 8 quarterly results


Table 2: Scientex's segmental results


Chart 1: Scientex's last 36 quarterly results

Valuation

Scientex (at RM6.95 yesterday) is now trading at a trailing PE of 10.4 times (based on last 4 quarters' EPS of 67 sen). With strong growth of 32% last 4 quarters - and likely to continue in the next 3 years - Scientx is an attractive growth stock with PEG ratio is about 0.3 time only.

Technical Outlook

The stock is in an uptrend.The uptrend continues after the share price broke above the horizontal resistance at RM6.00-6.10 in August.


Chart 2: Scientex's weekly chart as at Sep 24, 2014 (Source: Tradesignum)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Scientex remains a good stock for medium to 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, Scientex.