LPI: Bottom-line jumped q-o-q due to investment income

Result Update

For QE30/9/2014, LPI's net profit increased by 25% q-o-q or 6% y-o-y to RM64 million while revenue inched up 3% q-o-q or 6% y-o-y to RM301 million. The improved bottom-line was mainly contributed by higher investment income received. LPI seems to have a jump in profit every 3rd quarter for the past 7 years.


Table 2: LPIs last 8 quarterly results


Chart 1: LPI's last 35 quarterly results


Chart 2: LPI's last 10 yearly results

Valuation

LPI (closed at RM17.48 yesterday) is now trading at a PE of 17.5 times (based on last 4 quarters' EPS of 99 sen). At this PE multiple, LPI is deemed fairly valued.

Technical Outlook

LPI is consolidating within a triangle, ABC. If it can break to the upside of the triangle at RM17.70, its uptrend may continue. For now, LPI will find support at RM17.00, which also happens to be the 40-week EMA line.


Chart 2: LPI's weekly chart as at Oct 8, 2014 (Source: Tradesignum)

Conclusion

Based on good financial performance, reasonable valuation & positive technical outlook, LPI is still rated a HOLD.

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, LPI.