For QE31/3/2015, Efficen's net profit rose 135% q-o-q & 78% y-o-y to RM2.6 million while revenue increased by 30% q-o-q & 15% y-o-y to RM14.3 million. Profit increased q-o-q due to increase in revenue as well as higher margin from the services rendered for data and document processing contributed by adhoc projects.
Table: Efficen's last 8 quarterly results
Chart 1: Efficen's last 28 quarterly results
Valuation
Efficen (traded at RM0.275 as at 11.45am today) is now trading at a trailing PE of 29 times. At this multiple, Efficen is deemed overvalued.
Technical Outlook
Efficen has been trading in a large triangle formation from 2007 to middle of 2014. In middle of 2014, it broke above the triangle formation (at RM0.22) and rose to a high of RM0.42. Since then, the stock has corrected & consolidated. It should find support at the horizontal line at RM0.25 or the upper line of the triangle at RM0.22.
Chart 2: Efficen's monthly chart as at 29/2/2015_11.45am (Source: ShareInvestor)
Conclusion
Based on improved financial performance & improving technical outlook, Efficen is a stock worth tracking. If the earnings continue to improve - and the valuation may become less demanding - a case can be made for buying into this stock.
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, Efficen.
EFFICEN (0064) - Efficen: Earnings began to rise again
http://nexttrade.blogspot.com/2015/05/efficen-earnings-began-to-rise-again.html
