Table: Pohuat's last 8 quarterly results
Graph: Pohuat's last 52 quarterly results
As at 31/10/2020, Pohuat's financial position is very healthy with current ratio at 2.9 times while total liabilities to total equity was at 0.3 time. Net cash in hand was equivalent to 83 sen per share.
Pohuat (closed at RM1.78 yesterday) is now trading at a trailing gross PER of 9.3 times (based on last 4 quarters' EPS of 19.14 sen). At this PER, the stock is fairly attractive. In addition, the stock pays dividend totaling 8 sen in last 4 quarter, which translates to an attractive Dividend Yield of 4.5%.
Pohuat has recovered from the low of RM0.68 in Mar to a recent high of RM2.06. An intermediate uptrend line, SS will provide support if the share price were to retreat in the near future.
Chart 1: Pohuat's daily chart as at Dec 23, 2020 (Source: Malaysiastock.biz)
Looking at the weekly chart, we can see a line connecting the recent peaks for the stock. This line, denoted as RR, will provide resistance for any near term rally. However, if the share price can surpass this resistance, the ensuing rally can be expected to be strong.
Chart 2: Pohuat's weekly chart as at Dec 23, 2020 (Source: Malaysiastock.biz)
Based on good financial performance, healthy financial position and fairly attractive valuation, Pohuat is a good stock for long-term investment.
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