Scientx: Top-line & bottom-line continued to rise

Result Update

For QE30/4/2015, Scientx's net profit  increased by 19% q-o-q or 18% y-o-y to RM43 million while revenue was mixed- dropped 2 %q-o-q but rose 7% y-o-y to RM455 million. Revenue dropped q-o-q due to 3% decline in revenue from the manufacturing division.Net profit rose due to higher profit from the manufacturing division (mainly due to higher profit margin) and from the property division (due to marginal increase in revenue & profit margin). Finally, bottom-line was boosted by lower forex losses.


Table 1: Scientex's last 8 quarterly results


Table 2: Scientex's segmental results


Chart 1: Scientex's last 39 quarterly results

Valuation

Scientex (closed at RM6.76 yesterday) is now trading at a trailing PE of 9.5 times (based on last 4 quarters' EPS of 71 sen). With strong growth of about 20% in the last 4 quarters, Scientx is an attractive growth stock with PEG ratio is about 0.5 time only.

Technical Outlook

Scientx has been in an uptrend, guided by the 10 & 21-month SMA line. With the MACD falling below the MACD Signal line, we can expect the share price to consolidate for a while. This consolidation may bring the share price to the 21-month SMA line at RM6.30-6.50.


Chart 2: Scientex's weekly chart as at Jun 29, 2015 (Source: ShareInvestor.com)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Scientex remains a good stock for medium to 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, Scientex.