Wednesday, July 25, 2012
PWRoot- Time to Power Up!
PWRoot has just announced its results for QE31/5/2012. Its net profit
increased by 77% q-o-q or 35% y-o-y to RM7.8 million while revenue rose
21% q-o-q or 40% y-o-y to RM71 million. The company attributes its
better performance to increased sales to oversea markets.
Table: PWRoot's last 8 quarterly results
The chart below shows a company whose revenue is soaring while maintaining its profit margin. That's a commendable performance.
Chart 1: PWRoot's last 16 quarterly results
PWRoot (at RM0.72) is now trading at a PE of 11 times (based on last 4
quarters' EPS of 6.5 sen). At this PE multiple, the company is still
deemed attractive due to its steady growth.
PWRoot has just broken above its horizontal resistance at RM0.70. With this breakout, the stock may continue its steady rise.
Chart 2: PWRoot's weekly chart as at July 24, 2012 (Source: Quickcharts)
Based on good financial performance, reasonable valuation & positive
technical outlook, PWRoot could be a good stock for medium-term