Harta- top-line & bottom-line improved further

Result Update

For QE31/3/2013, Harta's net profit rose by
3% q-o-q or 25% y-o-y to RM62 million while revenue rose by 4% q-o-q or
12% y-o-y to RM270 million. The improved bottom-line & top-line was
due to increase in sales volume.

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Table: Harta's last 8 quarterly results

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Chart 1: Harta's last 22 quarterly results

Valuation

Harta
(at RM5.57 at end of morning session) is trading at a PE of 17.4 times
(based on last 4 quarters' EPS of 32 sen). At this PE multiple, Harta
is deemed fully valued.

Technical Outlook

Harta is
in an upward channel. It has just broken above the horizontal line
RM5.30 and it may test the upper boundary of the channel at
RM5.60-5.65. A breakout of that channel would lead to an acceleration
in the current gradual move. Given the high valuation, I believe
Harta's rise would be subdued and prices would remain within the
channel.

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Chart 2: Harta's daily chart as at May 8, 2013_12.30pm (Source: quickcharts)

Conclusion

Based
on satisfactory financial performance & positive technical outlook,
Harta remained 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, HARTA.

Author: Alex Lu