For QE31/12/2014, Johotin's net profit increased by 76% q-o-q or 33% y-o-y to RM5.2 million while revenue increased by 15% q-o-q or 62% y-o-y to RM105 million. PBT increased sequentially due to increase in PBT from tin manufacturing segment from RM1.33 mil to RM4.1 mil as well as increase PBT from F&B segment from RM2.95 mil to RM3.04 mil.
Table 1: Johotin's last 8 quarterly results
Chart 1: Johotin's last 21 quarterly results
Valuation
Johotin (closed at RM1.61 on Friday) is now trading at a trailing PE of 11.5 times (based on last 4 quarters' EPS of 13.9 sen). If Johotin can maintain its earnings achieved in QE31/12/2014 of 5.5 sen, its full-year earnings could be 22 sen. Its PER would improve to 8 times. Thus, Johotin's valuation is not demanding.
Technical Outlook
Johotin is in a long-term uptrend line, with support at RM1.35. Any pullback towards this support would be a buying opportunity. Its intermediate downtrend line resistance is at RM1.65. A breakout above RM1.65 could signal the start of the next upleg for the stock.
Chart 2: Johotin's monthly chart as at Feb 27, 2015 (Source: Share Investor.com)
Conclusion
Based on improved financial performance, fair-to-attractive valuation and positive technical outlook, Johotin is a good stock for 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, Johotin.
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