Thursday, February 16, 2017

HEIM: Earnings Soared

Results Update

In QE31/12/2016, HEIM's net profit increased by 84% q-o-q or 15% y-o-y to RM105 million while turnover rose 50% q-o-q or 10% q-o-q to RM578 million. Revenue rose sharply q-o-q principally driven by higher volumes from festive demand, improved brand portfolio performance and the stabilization of the market following lower volumes observed in the immediate preceding quarter. PBT rose 63.4% q-o-q on the back of increased revenue and timing of commercial spend. PAT rose more than PBT due to lower tax rate as a result of RM13.4 million deferred tax used to reduce tax charge.


Table: HEIM's last 8 quarterly results

 
Graph: HEIM's last 45 quarterly results

Valuation

HEIM (closed at RM15.92 yesterday) is now trading at a trailing PER of 17.6 times (based on last 4 quarters' EPS of 90.47 sen). Its dividend yield is very attractive at 6.0%. Based on PER & DY, HEIM is deemed fairly attractive.

Technical Outlook

HEIM is in an long-term uptrend line. Its immediate support comes from the horizontal line at RM15.90-16.00.


Chart: HEIM's weekly chart as at Feb 15, 2017 (Source: MalaysiaStock.Biz)


Conclusion

Based on good financial performance, fairly attractive valuation & positive technical outlook, HEIM could be a good stock for your investment portfolio.

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.

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