Boxpak- poised to rise?

Result Update

For QE31/3/32013, Boxpak's net profit
dropped 13% q-o-q or 1% y-o-y to RM3.5 million while revenue was higher
by 135 y-o-y but dropped 7% q-o-q to RM61 million. Revenue dropped
q-o-q as previous quarter was higher due to festive carton in Vietnam
operations. Bottom-line dropped q-o-q due to implementation of minimum
wages in Malaysia & revision to minimum wages in Vietnam.

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Table: Bixpak's last 8 quarterly results

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Chart 1: Boxpak's last 22 quarterly results

Valuation

Boxpak
(closed at RM2.45 yesterday) is now trading at a PE of 7.8 times (based
on last 4 quarters' EPS of 31.6 sen). At this multiple, Boxpak is
deemed fairly valued for a small-cap stock.
Technical Outlook

Boxpak
is in a gradual uptrend. For the past 1 years, Boxpak has been trapped
with a symmetrical triangle with resistance at RM2.30. On May 15, it
broken above that resistance, albeit on thin volume. If it can recruit
more support, Boxpak may continue with its prior gradual uptrend.

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Chart 2: Boxpak's weekly chart as at May 21, 2013 (Source: quickcharts)

Conclusion

Based
on satisfactory financial performance & potentially bullish
technical breakout, Boxpak could be a good stock for long-term
investment. Its valuation is however not cheap for a small-cap.

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, Boxpak.

Author: Alex Lu