Yeelee: At The Cusp of Uptrend Acceleration?

Result Update

For QE30/9/2016, YeeLee's net profit increased by 8% q-o-q or 28% y-o-y to RM10.9 million while revenue was mixed - down 6% q-o-q but up 25% y-o-y to - RM248 million. PBT rose q-o-q mainly due to higher sales of aerosol cans and palm oil mill able to turnaround in this quarter with better OER and higher fresh fruit bunches ("FFB") processed offsetting the lower sales of consumer products in trading division. {Note: The result for QE30/9/2016 was announced on November 24, 2016.]


Table: YeeLee's last 8 quarterly results


Graph: YeeLee's last 41 quarterly results

Valuation

YeeLee (closed at RM2.55 at the close of the morning session) is now trading at a PE of 10.9 times (based on last 4 quarters' EPS of 23.5 sen). At this PER, YeeLee is deemed quite attractive for a well-diversified group with large exposure to consumer spending. While its dividend yield is low at 1.4%, it's trading at a discount of 14% to its book value (of RM2.97 as at 30/9/2016).

Technical Outlook

YeeLee is in a long-term uptrend. Its uptrend is however capped by the line connecting its recent peaks, RR. The stock is now pushing against that resistance line. If it can break above this line at RM2.55-2.60, its uptrend may accelerate.


Chart 1: YeeLee's monthly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)

I have also appended the weekly and daily charts to show the critical resistance level of RM2.55-2.60 that's checking the stock's upside.


Chart 2: YeeLee's weekly chart as at Jan 10, 2017_12.30 (Source: Chartnexus)


Chart 3: YeeLee's daily chart as at Jan 10, 2017_12.30 (Source: Chartnexus)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, YeeLee is a good stock to hold for long-term investment. The uptrend may accelerate once the share price can breach the resistance level of RM2.55-2.60.


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.