For QE30/9/2015, Tomypak's NP improved by 3.6% q-o-q or 171% y-o-y to RM6 million while revenue increased by 12% q-o-q or 8% yo-y to RM56 million. Profits increased due to the better sales mix, gain on foreign exchange and continuous improvement in production efficiency.
Table 1: Tomypak's last 8 quarterly results
Chart 1: Tomypak's last 32 quarterly results
Valuation
Tomypak (closed at RM2.76 at the end of the morning session) is now trading at a fairly attractive PER of 14.5 times (based on last 4 quarters' EPS of 19.1 sen). At this PER, Tomypak is deemed fairly valued.
Technical Outlook
This morning, Tomypak made an intraday low of RM2.65 before closing at RM2.76. This means it is still above its intermediate uptrend line, with support at RM2.75.
Chart 2: Tomypak's daily chart as at Nov 25, 2015_12.30pm (Source: ShareInvestor.com)
Tomypak, which had surpassed its all-time high of RM2.05, had touched what I would regard as its target price of RM3.00 (on November 18). Having gone do far, investors must be asking the perennial question: Is there more to come?!
Chart 3: Tomypak's monthly chart as at Nov 25, 2015_12.30pm (Source: ShareInvestor.com)
Conclusion
Based on improved financial performance and positive technical outlook, I would rate Tomypak a HOLD. However, since its scorching run in the past 3 months, some profit-taking is not a bad idea.
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, Tomypak.
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