PANAMY: A Bumper Dividend Coming

Results Update

For QE31/3/2018, Panamy's net profit dropped 41% q-o-q or 6% y-o-y to RM27 million while revenue was mixed- dropped by 13% q-o-q but rose 12% y-o-y to RM277 million. Revenue dropped q-o-q mainly due to lower sales from Home Shower products which was seasonally higher in the preceding quarter. As a result, its PBT dropped 34% to RM33.6 million from RM50.9 million in the preceding quarter.


Table: Panamy's last 8 quarterly results


Graph: Panamy's last 52 quarterly results

Valuation

Panamy (closed at RM38.30 yesterday) is trading at a PE of 17.7 times (based on last 4 quarters' EPS of 216 sen). At this PER, Panamy is deemed fairly attractive. In addition, Panamy pays a decent dividend- with DY of 6.5% (including special dividend of RM1.00 per share) or.3.9% (excluding special dividend).

Technical Outlook

Panamy has been range-bound for the past 2 years. Its immediate support & resistance are at RM33 & RM41.


Chart: Panamy's weekly chart as at May 21, 2018 (Source: ShareInvestor.com) 

Conclusion

Despite the weaker financial performance, Panamy is still a good stock for long-term investment based on attractive valuation and positive technical outlook.

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.

Panamy: Earnings Dropped

Results Update

For QE31/3/2017, Panamy's net profit dropped by 14% q-o-q or 26% y-o-y to RM27 million while revenue dropped by 13% q-o-q or 1% y-o-y to RM247 million. Revenue dropped q-o-q due to slower demand for Home Appliances products for both domestic and export market. The slowdown in market demand was mainly due to volatility of Middle East region, shortfall from Thailand sales and stiffer competition. PBT decreased by 33.6% or RM13.4 million as compared to combined profit before tax of RM39.7 million in the preceding quarter. (Panamy's latest result was announced on May 30.)


Table: Panamy's last 8 quarterly results


Graph: Panamy's last 48 quarterly results

Valuation

Panamy (at RM35.04 last Friday) is trading at a PE of 16.8 times (based on last 4 quarters' EPS of 209 sen). Notwithstanding a drop in dividend, Panamy still pays a decent DY of 3.3%.

Technical Outlook

Panamy is a long-term upward channel, with support at RM26.00.


Chart 1: Panamy's monthly chart as at Jun 2, 2017 (Source: ShareInvestor)

Panamy is now hanging onto the horizontal line at RM35.00.



Chart 2: Panamy's daily chart as at Jun 2, 2017 (Source: ShareInvestor) 

Conclusion

Despite the weaker financial performance, Panamy is still a good stock for long-term investment based on attractive valuation and positive technical outlook.

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.

BAT Shutting Down Its PJ Plant (Updated)

BAT has announced that it will shut down its plant located in Petaling Jaya. This will lead to the retrenchment of 230 workers (here).


 via The Edge Financial Daily

The immediate impact will be mixed. The stock is trading near its long-term uptrend line support at RM53.00. I expect the uptrend line to hold. 


Chart 1: BAT's monthly chart as at Mar 17, 2016 (Source: ShareInvestor.com)

I expect the long-term benefit of the closure to the company will be positive. A good example is to look at is Panamy (then known as Matsushita)'s closure of its Bangi appliance plant in 2005. The share price has risen from around RM7.00 to above RM27.00 today. [In 2013, Panamy also closed its LCD plant in Shah Alam.]

 
Chart 2: Panamy's monthly chart as at Mar 17, 2016 (Source: ShareInvestor.com)  

I included here the upward trend in the financial performance of Panamy since the closure of its Bangi Plant in 2005.


Chart 4: Panamy's financial performance from QE31/3/2005 to QE31/12/2015

Based on the Panamy positive experience, I would recommend a HOLD on BAT. If the share price were to drop to RM52-53, it would be a long-term BUY.

 Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, BAT & Panamy.

Panamy: Earnings soared

Results Update

For QE30/9/2015, Panamy's net profit increased by 27% q-o-q or 54% y-o-y to RM40 million while revenue increased by 5% q-o-q or 13% y-o-y to RM281 million. Revenue increased q-o-q mainly due to export market for Home Shower products have increased as compared to the preceding quarter as these products are seasonally higher in the current quarter. Profits increased q-o-q mainly attributed by higher share  of  profits  from  associated  company  amounting  to  RM6.2 million  in  this  quarter  as compared to RM2.6 million registered in the preceding quarter.


Table: Panamy's last 8 quarterly results


Chart 1: Panamy's last 35 quarterly results

Valuation

Panamy (at RM22.56 last Friday) is trading at a PE of 11 times (based on last 4 quarters' EPS of 202 sen). At this PER, Panamy is deemed attractively valued. In addition, Pananmy has announced dividend totaling 142 sen, which translates to an attractive DY of 6.3%.

Technical Outlook

Panamy is a long-term upward channel, with support at RM20.00. If Panamy can surpass its 2013 high of RM23.50, it may continue with its uptrend.


Chart 2: Panamy's monthly chart as at Nov 27, 2015 (Source: ShareInvestor)

Conclusion

Based on good financial performance, attractive valuation and positive technical outlook, Panamy is still a good stock for long-term investment.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Panamy.