For QE31/3/2015, SEG's net profit rose 131% q-o-q or 50% y-o-y to RM10.8 million while revenue increased by 14% q-o-q or 10% y-o-y to RM67 million. The improvement is due to seasonally factor.
Table: SEG's last 8 quarterly results
Chart 1: SEG's last 28 quarterly results
Valuation
SEG (closed at RM1.46 yesterday) is now trading at a PE of 36 times (based on last 4 quarters' EPS of 4.11 sen). At this PE multiple, SEG is deemed over valued.
SEG paid out dividend totaling 11 sen for FY2014. For FY2015, the interim dividend of 7 sen is higher than FY2014 interim of 5 sen. Assuming the final dividend is similar to the interim dividend, FY2015 dividend will amount to 14 sen. Thus, SEG's DY is very attractive at 10%.
Technical Outlook
SEG broke above its intermediate downtrend line, RR at RM1.45-1.46 in April. The upside is capped by the horizontal line at RM1.48. See Chart 2.
Chart 2: SEG's weekly chart as at May 14, 2015_10.30am (Source: ShareInvestor.com)
If SEG can surpass the resistance at RM1.48 (preferably, the psychological RM1.50 too), the stock may revisit its high at RM2.00.
Chart 3: SEG's monthy chart as at May 14, 2015_10.30am (Source: ShareInvestor.com)
Conclusion
Based the improved financial performance & mildly positive technical outlook, SEG could be a good stock for a trading BUY. Its high DY would certainly make it an income stock.
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, SEG.
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