For QE31/1/2015, SCGM's net profit rose 27% q-o-q or 17% y-o-y to RM3.8 million while revenue rose 5% q-o-q or 11% y-o-y to RM27 million. Revenue increased q-o-q in line with improved demand from the general Asian and Australian markets. Bottom-line improved due to higher sales, lower raw material costs and foreign exchange gains - as a result of a stronger U.S. dollar.
Table: SCGM's last 8 quarterly results
Chart 1: SCGM's last 24 quarterly results
Valuation
SCGM (closed at RM2.69 yesterday) is now trading at a PE of 16.6 times (based on last 4 quarters' EPS of 16.18 sen). At this PE, SCGM is fully valued. It is no longer a penny stock trading at RM0.50 in December 2012 with a PE of 5.3 times.
Technical Outlook
SCGM is in a long-term uptrend line with support at RM2.10. Last week, it broke above its recent high of RM2.50.
Chart 2: SCGM's weekly chart as at Mar 18, 2015 (Source: ShareInvestor.com)
Chart 3: SCGM's monthly chart as at Mar 18, 2015 (Source: ShareInvestor.com)
Conclusion
Based on good financial performance & positive technical outlook, SCGM is still a good stock for long-term investment. However, its upside may be limited given its current high PER.
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, SCGM.
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