Thursday, November 19, 2015

Canon Update: Solutn 19/11/2015

Solutn stock that we choose on 6th November for result play and it had strike out TP of 0.45 on 17/11/2015 which we have harvest 75% of our position and left with 25% for the result play.



Solutn had announced their Quarter result today where we saw the Profit jump 110% y-o-y from RM0.7m to RM1.473m, however the profit slide 3% q-o-q from RM1.52m to RM1.473m. The revenue drop 26.52% y-o-y from RM8.1m to RM5.95m while rose 1.95% q-o-q from RM5.838m to RM5.952m.

Why is the revenue drop but profit able to move up?

Looking at the quarter report

Note B1 Review of performance, B2 Material change in PT
We can see that the company don’t have any one off gain, but it was due to higher margin and better cost control (highlighted in the photo).

The Balance Sheet of the company, we can also see that the company is a net cash company (excluding trade payables) with RM16.925m which translate to RM0.0847 per share.

As what we can see, the company is still doing well though it doesn’t have a very bombastic quarter result. However, we will still maintain our TP of RM0.45 for momentum play and we have a trailing RUN ROAD price of RM0.41. We have shifted our RUN ROAD Price upwards from RM0.38 so that we can exit the counter with profit.

May all the HUAT be with us!

Regards
Big Canon Finance

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