Results Update
For QE31/3/2018, Panamy's net profit dropped 41% q-o-q or 6% y-o-y to RM27 million while revenue was mixed- dropped by 13% q-o-q but rose 12% y-o-y to RM277 million. Revenue dropped q-o-q mainly due to lower sales from Home Shower products which was seasonally higher in the preceding quarter. As a result, its PBT dropped 34% to RM33.6 million from RM50.9 million in the preceding quarter.
Table: Panamy's last 8 quarterly results
Graph: Panamy's last 52 quarterly results
Valuation
Panamy (closed at RM38.30 yesterday) is trading at a PE of 17.7 times (based on last 4 quarters' EPS of 216 sen). At this PER, Panamy is deemed fairly attractive. In addition, Panamy pays a decent dividend- with DY of 6.5% (including special dividend of RM1.00 per share) or.3.9% (excluding special dividend).
Technical Outlook
Panamy has been range-bound for the past 2 years. Its immediate support & resistance are at RM33 & RM41.
Chart: Panamy's weekly chart as at May 21, 2018 (Source: ShareInvestor.com)
Conclusion
Despite the weaker financial performance, Panamy is still a good stock for long-term investment based on attractive valuation and 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.
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