Result Update
In QE30/9/2018, SKPRES's net profit rose by 9.2% q-o-q but declined by 19.9% y-o-y to RM28.1 million. Its revenue rose by 10.9% q-o-q but declined by 19.7% y-o-y to RM477 million. Its profit before taxation also increased by 9.4% from RM33.5 million to RM36.6 million as a result of higher sales during this quarter. (Note: The result for QE30/9/2018 was released on November 29, 2018.)
Table: SKPRES's last 8 quarterly results
Graph: SKPRES's last 42 quarterly results
Financial Position
As at 30/9/2018, SKPRES's financial position is deemed very healthy with good current ratio at 2.3x while gearing ratio improved to 0.5x.
Valuation
SKPRES (closed at RM1.03 last Friday) is now trading at a PER of 11.3 times (based on last 4 quarters' EPS of 9.1 sen). At this PER, SKPRES is deemed very attractive after a decline of 55% from its peak of RM2.30 in February 2018.
Technical Outlook
SKPRES has broken below its long-term uptrend line, SS at RM1.40 in June 2018. Despite a strong rebounce that sent the share price above the uptrend line again in July 2018, the stock failed to stay above the uptrend line. It is now resting on the strong support from the horizontal line at RM1.00.
Chart: SKPRES's weekly chart as at Jan 4, 2019 (Source: Malaysiastock.biz)
Conclusion
Based on good, albeit weaker financial performance, good financial position and attractive valuation, SKPRES could be a good stock to consider for long-term investment. while bearish technical outlook may lead to further price weakness,
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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