Scientx: Earnings Soared

Result Update

For QE31/7/2019, Scientx's net profit rose 83% q-o-q or 51% y-o-y to RM133 million while revenue was rose 13% q-o-q or 28% y-o-y to RM939 million. The increase in revenue and profits were contributed by better sales performance from both the manufacturing and property divisions.


Table: Scientex's last 8 quarterly results


Graph: Scientex's last 56 quarterly results

Financial Position

As at 31/7/2019, Scientex's financial position is deemed satisfactory with current ratio at 1.3 times and gearing ratio at 0.7 time.

Valuation

Scientex (closed at RM8.89 yesterday) is now trading at a trailing PE of 13.4 times (based on last 4 quarters' EPS of 66.26 sen). At this PER, Scientex is deemed fairly attractive.

Technical Outlook

Scientx was in an uptrend line, SS with support at RM8.00. Its upside is capped by the intermediate downtrend line, RR at RM9.20. An upside breakout above RM9.20 could signal the continuation of its uptrend.


Chart: Scientex's weekly chart as at Sep 26, 2019 (Source: Malaysiastock.biz)

Conclusion

Based on good financial performance, strong financial position, fairly attractive valuation and positive technical outlook, Scientex remains a good stock for medium to long-term investment.

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.