For QE30/9/2015, Panamy's net profit increased by 27% q-o-q or 54% y-o-y to RM40 million while revenue increased by 5% q-o-q or 13% y-o-y to RM281 million. Revenue increased q-o-q mainly due to export market for Home Shower products have increased as compared to the preceding quarter as these products are seasonally higher in the current quarter. Profits increased q-o-q mainly attributed by higher share of profits from associated company amounting to RM6.2 million in this quarter as compared to RM2.6 million registered in the preceding quarter.
Table: Panamy's last 8 quarterly results
Chart 1: Panamy's last 35 quarterly results
Valuation
Panamy (at RM22.56 last Friday) is trading at a PE of 11 times (based on last 4 quarters' EPS of 202 sen). At this PER, Panamy is deemed attractively valued. In addition, Pananmy has announced dividend totaling 142 sen, which translates to an attractive DY of 6.3%.
Technical Outlook
Panamy is a long-term upward channel, with support at RM20.00. If Panamy can surpass its 2013 high of RM23.50, it may continue with its uptrend.
Chart 2: Panamy's monthly chart as at Nov 27, 2015 (Source: ShareInvestor)
Conclusion
Based on good financial performance, attractive valuation and positive technical outlook, Panamy is still a good stock for 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, Panamy.
I am still wondering how can panamy traded at such low valuation for so many years. Is there any big risk that I couldn't see? It has very strong cash flow and 1/3 of market cap's cash pile. Excellent management and solid back bone parent company. The retail is focus on mid-end products which is the most conservative. Not to mention the company's consistent dividend payout to shareholders.
ReplyDeleteAlso, I am interested to know your opinion on the fundamental area of Bonia.
Thank you and appreciate your kind sharing as always. Bravo!
Hi steve,
ReplyDeleteI agree with you on Panamy. It reminds me of Aji(nomoto). Cheap & good!
As for Bonia, it is resting at its long-term uptrend line at RM0.70. Its rolling 4-Q revenue rose 4% to RM689 million while net profit declined by 5% to RM49 million, leading to a decline in EPS from 6.4 to 6.1 sen.
At RM0.72, it is trading at PER of 12x or Price to Book of 1.6x. This makes Bonia a more attractive stock than Padini which has a PER of 13.2x & a PB of 2.9x.
I rate Bonia a good BUY for long -term.