Table 1: Boxpak's last 8 quarterly results
Looking at the full year segmental reporting, you can see clearly that Boxpak's earnings turnaround was due to lower operating expenses.
Table 2: Boxpak's full year segmental performance for FY2020 and FY2019
Graph: Boxpak's last 53 quarterly results
Due to its rapid growth, Boxpak's financial position is a bit stretched. Liquidity is tight with current ratio at 0.94 time as at 31/12/2020 while gearing is elevated with total liabilities to total equity at 1.6 times.
Boxpak (closed at RM1.50 yesterday) is now trading at a PE of 15 times (based on last 4 quarters' EPS of 9.95 sen). While the PE ratio is fair, this ratio can improve as the earnings of the company continue to improve.
Boxpak has started on its uptrend. While the uptrend is not strong, it is likely to pick up pace once the MACD cross into the positive territory.
Chart 1: Boxpak's monthly chart as at Feb 24, 2020 (Source: Malaysiastock.biz)
Based on improved financial performance and positive technical outlook, Boxpak is a good stock for long term investment.