For QE31//5/2017, Pantech's net profit rose 24% q-o-q or 73% y-o-y to RM14 million while its revenue was mixed - down 1% q-o-q but up 22% y-o-y - to RM152 million. Net profit rose due to higher profit margin as a result of better product mix achieved.
Table: Pantech's last 8 quarterly results
Graph: Pantech's last 41 quarterly results
Pantech (closed at RM0.635 yesterday) is now trading at a PE of 13 times (based on last 4 quarters' EPS of 4.99 sen). Dividend yield is decent at 3.4%. At these multiples, Pantech is priced fairly for a stock in the O&G sector where recovery is still a work in progress.
Pantech's monthly chart shows that the stock is on a recovery path.
Chart 1: Pantech's monthly chart as at July 26, 2017 (Source: Shareinvestor.com)
Its immediate resistance is the May high of RM0.66 & immediate support is its uptrend line at RM0.61.
Chart 2: Pantech's daily chart as at July 26, 2017 (Source: Shareinvestor.com)
Based satisfactory financial performance, fair valuation & positive technical outlook, Pantech is a good stock for long-term investment.
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