Technical Outlook

UMW has just broken above its strong horizontal resistance at RM6.50. The next resistance is at RM6.80 & then at RM7.50.


Chart: UMW's weekly chart as at April 12, 2010_11.45am (Source: Quickcharts)

Results Update

For FYE31/12/2009, UMW's net profit dropped by 37% to RM371 million from RM586 million on the back of a 16%-drop in turnover to RM10.698 billion from RM12.770 billion. We can see from Table 1 that all its divisions suffered a drop turnover and neraly all the divisions (except Oil & Gas) suffered a drop in profit contribution.


Table 1: UMW's Segmental Results for FY2009 & FY2008

For details of its last 8 quarterly results, see Table 2.


Table 2: UMW's last 8 quarterly results

From Chart 2 below, we can that UMW's financial performance has recovered in the past 3 quarters. I believe this recovery is likely to continue.


Chart 2: UMW's last 11 quarterly results

Conclusion

Based on the upside breakout above RM6.50, UMW may continue its prior uptrend.