AEON has just broken above its triangle, ABC at RM3.20. This followed the upside breakout of its intermediate downtrend line at RM3.10 in mid-April. See Chart 1.
Chart 1: AEON's daily chart as at Apr 29, 2015_2.45pm (Source: ShareInvestor.com)
Similar breakout of the downtrend line was seen in Mar 2014 where the share price rose from RM3.60 to about RM4.10. See Chart 2 below.
Chart 2: AEON's weekly chart as at Apr 29, 2015_2.45pm (Source: ShareInvestor.com)
Recent Results
AEON's latest results for QE31/3/2015 should be out in 1-2 weeks time. Meanwhile if you look at the results for QE31/12/2014, we can see that the NP was marginally lower y-o-y at RM75 million while revenue was up 4% to RM972 million. The last calender quarter, which has always been the best quarter for AEON. as such, we saw a big jump in the bottom-line of 72% over the immediate preceding quarter, despite a small 4%-imcrease in revenue.
Table: AEON's last 8 quarterly results
Chart 3: AEON's last 32 quarterly results
Valuation
AEON (closed at RM3.22 as at 2.45pm today) is now trading at a PE of 21.3 times (based on last 4 quarters' EPS of 5.15 sen). At this PE, AEON is deemed fairly valued.
Conclusion
Based on good financial performance & bullish technical outlook, AEONCR is still a good stock for trading BUY or medium-term investment. However, its upside may be capped by its high valuation.
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, AEON.
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