Harbour: Earnings Took A Heavy Knock

Result Update

For QE30/9/2016, Harbour's net profit dropped 53% q-o-q or 15% y-o-y to RM8.8 million while its revenue dropped 30% q-o-q or 3% y-o-y to RM112 million.


Table 1: Harbour's last 8 quarterly results

All 4 segments suffered q-o-q decline in revenue & profits.


Table 2: Harbour's segmental results for QE30/9/2016 & QE30/6/20165


Graph 1: Harbour's last 37 quarterly results

Valuation

Harbour (closed at RM0.80 in the morning session) is now trading at a PE of 5.5 times (based on last 4 quarters' EPS of 14.36 sen). At this PER, Harbour is deemed attractively valued. 

Technical Outlook

Harbour is in a long-term "uptrend line" with support at RM0.55.


Chart 2: Harbour's monthly chart as at Nov 24, 2016_3.30pm (Source: ShareInvestor)

Conclusion

Despite the weak financial performance, I am keeping my rating for Harbour as a BUY based on attractive valuation and mildly positive technical outlook.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.