For QE30/4/2017, Prlexus's net profit plunged 79% q-o-q or 54% y-o-y to RM1.6 million on the back of lower
revenue which dropped 43% q-o-q or 15% y-o-y to RM62 million. Revenue dropped q-o-q mainly due to lower revenue from the apparel division. This led to the q-o-q drop in profits.
Table: Prlexus's last 8 quarterly results
Graph: Prlexus's last 35 quarterly results
Valuation
Prlexus (closed at RM1.55 last Friday) is now trading at a PE of 10.2 times (based on last 4 quarters' EPS of 16.25 sen). At this PER, Prlexus is deemed fairly valued.
Technical Outlook
Prlexus has been consolidating between RM1.35 & RM1.65 for the past 1 year. In view of the poor result, the share price is likely to drop to the support at RM1.35. If the support at RM1.35 failed, Prlexus's downtrend may continue.
Chart 1: Prlexus's monthly chart as at Jun 30, 2017 (Source: ShareInvestor)
Chart 2: Prlexus's weekly chart as at Jun 30, 2017 (Source: ShareInvestor)
Conclusion
Despite the poor financial performance, Prlexus is rated a HOLD as it is trading at reasonable valuation. If Prlexus breaks below RM1.35, the HOLD rating will be revised to a SELL.
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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