Topglov: Revenue & Profits soared

Results Update

For QE30/11/2017, Topglov's net profit rose 7% q-o-q or 44% y-o-y to RM105 million while revenue rose 4% q-o-q or 19% y-o-y to RM938 million. Topglov attributed its outstanding performance to a 8%-growth in Sales Volume (due to strong demand growth); improvements in production efficiency & quality, and the coming on-stream of new capacity. It is a very exciting time for Topglov as its revenue closes in on the RM1 billion mark for quarterly revenue just as it surpasses the RM100 million mark for quarterly net profit.

 
Table: Topglov's last 8 quarterly results


Graph: Topglov's last 46 quarterly results

Valuation

Topglov (closed at RM7.48 yesterday) is now trading at a trailing PE of 26X (based on last 4 quarters' EPS of 29 sen). At this PER, Topglov is deemed fairly valued.

Technical Outlook

Yesterday, Topglov rallied past its recent high of RM7.05 and rose to RM7.48. The breakout of the RM7.05 level is also significant in another level because that level was close to the all-time high recorded in late 2016. Thus, Topglov is now entering blue-sky territory. It is possible to go to RM9.00.


Chart 1: Topglov's daily chart as at Dec 19, 2017 (Source: Malaysiastock.biz)


Chart 2: Topglov's weekly chart as at Dec 19, 2017 (Source: Malaysiastock.biz)

Conclusion

Based on improved financial performance and positive technical outlook, I think Topglov is poised to go higher. 

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.