SCIENTX (4731) : Quarterly PBT Hit a New High!

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Result Update

For QE31/10/2017, Scientx's net profit remained unchanged q-o-q but rose 39% y-o-y to RM72 million while revenue was rose 2% q-o-q or 23% y-o-y to RM659 million. The increase in revenue was contributed by better sales performance from both the manufacturing and property segments. The increase in profits is consistent with the increase in revenue.


Table 1: Scientex's last 8 quarterly results

It is very encouraging that Scinetx's performance is fired by both the manufacturing & property development segments.


Table 2: Scientex's Segmental Results for QE30/10/2017

It is even more encouraging that Scientx achieved a new high in term of PBT in the last quarter. Prior to the last 4 quarters, the highest PBT was about RM80 million recorded in QE31/10/2015. The PBT in the past 4 quarters were all above RM80 million!


Graph: Scientex's last 49 quarterly results

Valuation

Scientex (closed at RM8.58 yesterday) is now trading at a trailing PE of 15 times (based on last 4 quarters' EPS of 58.42 sen). At this PER, Scientex is deemed fairly attractive.

Technical Outlook

Scientx is now trading just below its long-term uptrend line at RM8.80. While MACD has hooked down, the share prices did not drop much but were moving sideways. DMI is still "positive" which suggest that the uptrend may not be over. (Note: My gut feeling is that Scientx's share price is dragged down by the concern about the group's property development segment.


Chart: Scientex's weekly chart as at Dec 6, 2017 (Source: Malaysiastock.biz)

Conclusion

Based on good financial performance & attractive valuation, Scientex remains a good stock for medium to long-term investment. My only concern is the mildly negative technical outlook, which I hope will be resolved favorably after the latest quarter outstanding performance.

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.

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