Results Update
For QE30/9/2019, QL's net profit increased by 38% q-o-q or 15% y-o-y to RM69 million while revenue increased by 8% q-o-q and 17% y-o-y to RM1.073 billion. The result was announced on November 29.
Table: QL's last 8 quarterly results
From the graph below, we can see that QL's quarterly revenue has surpasssed the RM1 billion mark though quarterly profits are shy of its recent new high!!
Graph: QL's last 46 quarterly results
Financial Position
As at 30/9/2019, QL's financial position is deemed satisfactory, with current ratio at 1.58 times and gearing ratio at 0.92 time.
Valuation
QL (closed at RM7.45 last Friday) is now trading at a PE of 52 times (based on last 4 quarters' EPS of 14.33 sen). At this PER, QL is more than fully valued.
Technical Outlook
QL is steady uptrend, and is poised to test its all-time high of RM7.58 which was recorded in November 2018.
Chart: QL's weekly chart as at Dec 6, 2019 (Source: Malaysiastock.biz)
Conclusion
Based on satisfactory financial performance, QL can be a good stock for long-term investment. Its demanding valuation makes it very difficult to call a BUY on the stock. For now, it deserves a HOLD rating because of its promising technical set-up for an upside breakout of its all-time high.
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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