SIGN (7246) : An attractive stock
Signature International Bhd ('Sign') is involved in the design, manufacture and retail of kitchen and wardrobe systems segment, marketing and distribution of white goods segment, and manufacture of glass and aluminum products segment.
Recent Financial Results
From the Chart 1 below, we can see that Sign's top-line and bottom-line have been trending higher since QE30/6/2011. Its profit margin is also rising- a very healthy sign.
Table: Sign's last 8 quarterly results
Chart 1: Sign's last 28 quarterly results
Valuation
Sign (closed at RM1.80 on Friday) is now trading at a trailing PE of 6.7 times (based on last 4 quarters' EPS of 26.7 sen). It is trading at a PB of 1.5 times (based on NTA of RM1.17 per share as at
31/12/2014). Based on PER & PB, Sign is deemed fairly attractive.
Technical Outlook
Sign is in an uptrend since 2012. Its immediate support is at the horizontal line of RM1.70. That coincides with the 10-month SMA line.
Chart 2: Sign's monthly chart as at Feb 13, 2015 (Source: ShareInvestor.com)
(Updated) I have appended below Sign's monthly chart adjusted for the 1-for-2 Bonus in July 2010. The stock has just broken to a new high.
Chart 3: Sign's monthly chart as at Feb 16, 2015_9.35am (Source: ShareInvestor.com)
Conclusion
Based on satisfactory financial performance, fairly 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.
http://nexttrade.blogspot.com/
