Technical Outlook
On thin volume (143,000 shares), Vitrox broke above its horizontal resistance of RM3.80 yesterday. Despite the thin volume, the share price continues to rise today. As at 3.45pm, it is trading at RM3.95 on volume of only 30,000 shares.
Chart 1: Vitrox's weekly chart as at July 28, 2016_2.45pm (Source: Kenanga BTX/Chartnexus)
Chart 2: Vitrox's monthly chart as at July 28, 2016_2.45pm(Source: Tradesignum)
Recent Financial Results
For QE31/3/2016, Vitrox's net profit increased by 67% q-o-q & y-o-y to RM15.6 million while revenue increased by 17% q-o-q or 68% y-o-y to RM56 million. PAT increased due to tax credit of RM4.6 million which was the result of 2 subsidiaries obtaining pioneer status for their products, namely embedded high density electronic modules (1/1/2013-31/12/2017) and embedded intelligent robotic inspection system and machine with M2M connectivity and predictive analytic capability for semiconductor and electronics industries (17/6/2015-16/6/2020).
Table: Vitrox's last 8 quarterly results
Chart 3: Vitrox's last 34 quarterly results
Valuation
Vitrox (closed at RM3.95 at the time of writing) is now trading at a PE of 18.2 times (based on last 4 quarters' EPS of 21.71 sen). At this PER, Vitrox is deemed fully valued.
Conclusion
Based on improving financial performance & bullish technical outlook, Vitrox could be a good trading BUY. As always, you should exercise careful discretion as the stock is at its all-time high.
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, Vitrox.
VITROX (0097) - Vitrox: Making New High on Thin Volume
http://nexttrade.blogspot.my/2016/07/vitrox-making-new-high-on-thin-volume.html
