For QE30/4/2015, VS's net profit increased by 45% q-o-q but rose 595% y-o-y to RM26.5 million while revenue dropped 10% q-o-q or rose 12% y-o-y to RM420 million. VS's PBT rose q-o-q mainly due to better sales mix contributed by the Malaysia operations as compared to the preceding quarter.
Table 2: VS's last 8 quarterly results
Chart 1: VS's last 41 quarterly results
Valuation
VS (closed at RM4.49 yesterday) is trading at a trailing PE of 7.5 times (based on last 4 quarters' EPS of 60 sen). Based on the low PE, VS is deemed attractively valued.
Technical Outlook
VS is trading at its all-time high. The share price and indicators appear to be topping out- reflecting investors' cautious stand on this stock. They may be wondering: Is this stock at peak earning? If so, we must be cautious in the event of earning reversal.
Chart 3: VS's monthly chart as at Jun 23, 2015 (Source: ShareInvestor.com)
Conclusion
Based on satisfactory financial performance and attractive valuation, VS is a good stock for long-term investment. However, I would advise caution not to buy excessively as the stock could be at peak earning.
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, VS.
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