ZHULIAN weather the storm well

31/8/2011
Financial Result
Zhulian has just announced its FY2011 third quarter result. To compare with 3Q2010, company's revenue jump 25% to RM91.8m. Following the top line, company's bottom line also sees a 23% increase to RM24.3m. This translate into a EPS of RM0.053.

For the 9 months period, company recorded net profit of RM67.3m. Base on the consistent performance for the past few quarter, Zhulian net profit for FY2011 should exceed RM87m, it achieve for FY2010.

Technical Outlook
Zhulian share price is in a medium downturn since Jun 2010. It recorded a high of RM2.09(adjusted) on 21/6/2010, then all the way south to a low of RM1.50 on 26/9/2011. However, it manage to hold its ground and climbing slowly. MACD positive, ADX positive, MA(14d) to cross over MA(50d) is crucial.

Today, share price (RM1.70) is sitting on the fence of the downtrend line. Can it fall to the right site? Let's keep that in the watch list.

Stock Valuation
For the past twelve month, Zhulian recorded EPS of RM0.198. Base on current share price, it is trading at P/E 8.6x. Being a high yield counter, it should demand 10xPER. Fair price should be RM1.98.

Overall
Zhulian has been declare dividend every quarter. For the last couple of years, company has declare more than 60% of its earning. Despite the generosity, Zhulian's piggy bank worth RM0.29 per share. I think Zhulian is a good dividend stock to hold, providing cash flow in the bull or bear.

Read more...

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.

Read more...

ZHULIAN has another good quarter

1Q 2010 Financial Results

Compare to 1Q 09, company revenue increase 21% to RM86.3m from RM71.1. Net income jumped to RM24.9m compare to RM16.8m same quarter preceding year. It is a increase of 48%.

Immediate preceding quarter comparison shows that company revenue was RM0.9m slightly lower, mainly due to drop in sales overseas but offset by better local sales. Anyhow, net earning for the current quarter still able to match preceding quarter with RM24.9m.

Dividend of RM0.03 was announced, ex on 10th May 2010.

Technical Outlook
Chart wise, Zhulian uptrend is pretty stabe. I notice that every quarterly announcement will trigger another price rise. I think will be the same for the next few days.

Stock Valuation
I came out with EPS RM0.269(ttm), rather then using EPS for FY09. With today's closing of RM2.29, it is trading at P/E 8.5. It is worth to buy.

Overall
We has been assured with another promising quarter today. Zhulian is a very simple stock to play, just accumulate to let it growth.

Read more...

ZHULIAN technically looks promising.

Company Profile
An investment holding company involve in manufacturing and selling consumer products mainly costume jewelery(25%) and nutritional(20%) via MLM concept. Founded 1989, listed in KLSE on 2007. Its revenue contributed by extensive network in Asian region being Malaysia(60%), Thailand(32%) and others.

Financial Result
For the past 5yrs, PBT has been firm from RM52.7m in FY04 to RM95m in FY08, which is pretty consistent. For the 9months FY09, it had recorded net income of RM57.3m, RM18m shy of FY08 net profit RM74.7m, which i think is achievable. It current ratio is healthy at 4.6x thanks to more effective sales receivable.

Technical Outlook

Closing price RM1.65 on 8/1/10 is an immediate support. Fibonacci shows RM1.65 as a breakout point too. Few days observation is needed to ensure it stay above. If so, i can see a CUP forming by end of this month. MACD cross down is a bad sign tough.

Stock Valuation
ZHULIAN has a P/E of 7.6x and div yield of 6.7% based on rm1.65. Based on its steady performance for the past 5yrs, and dividend payout policies of at least 60% net profit. This stock is attractive.

Overall

FY09 last quarter result due to announce in 2 weeks time. I dont expect its eps to match 3rd quarter as we know its 3rd quarter use to be a peak season in conjunction with Hari Raya celebration. However, the full year earning should be as good as FY08. I also fancy the technical outlook and this is the time to ACCUMULATE.

Read more...