ZHULIAN quarterly result remain satisfactory

FY31/5/10
Financial Result
Zhulian revenue increase 6% from RM73.5m to RM77.9m this quarter, profit before tax sees a marginally increase to RM20.6m. Therefore, EPS also increase from RM0.048 to RM0.052. Year to date(6 months), revenue and net income of the company was RM164.3 and RM42.9 respectively.

Compare with preceding quarter, revenue was lower RM9m lower, mainly due to drop in overseas demand. Profit before tax was also RM11m lower compare to RM31.5m recorded during preceding quarter, inline with drop in revenue.

Technical Outlook
Zhulian share price has been in uptrend pretty consistently between support and resistance for the past 7 months. If the history does repeat itself, it should retest RM2.90, and RM3.00 in near term. Its share price is also well support at RM2.63.
*price may change after bonus issue on 21/7/10.

Stock Valuation
Trailing twelve month, Zhulian has EPS of RM0.264. With today closing of RM2.68, it is trading at PE10.2x. I think it is well valued.

Overall
Company has declare dividend of 3cent along with current result announcement. Don't forget there is still a bonus issue of 1:3 ex on 21th July 2010. Therefore, Zhulian remain ACCUMULATE for me.