Results Update
For QE31/3/2015, Sign's net profit increased by 10% q-o-q or 225% y-o-y to RM13.4 million while revenue grew by 23% q-o-q or 109% y-o-y to RM88 million.
Table: Sign's last 8 quarterly results
Chart 1: Sign's last 29 quarterly results
Valuation
Sign (closed at RM2.38 yesterday) is now trading at a trailing PE of 6.9 times (based on last 4 quarters' EPS of 34.4 sen). At this PE multiple, Sign is deemed very attractive.
Technical Outlook
Sign broke out of a Cup-with-handle formation at RM1.60. A simple 1-to-1 price extension would put the price target at RM2.60-2.70.
Chart 2: Sign's monthly chart as at May 25, 2015 (Source: ShareInvestor.com)
Conclusion
Based on strong financial performance, attractive valuation & positive technical outlook, Sign is rated 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, Sign.
SIGN (7246) - Sign: Strong earning continued
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