"Reported revenue has ...decreased by ..$60,000,000 odd due to Pfizer effects and profit grew by $26,000,000 odd due to market share gains. Does this mean API also dropped by a similar margin on both factors????"
While you may be right about API likely to see revenue decline, I am not sure that profit would necessarily fall if not increase. As I interpret Sigma's reported figures for the full year, much of its profit increase relative to FY11 results has been as a result of substantial decrease in financing costs and absence of goodwill writedown taken in the previous FY, as well as due to cost reduction and market share gain. I believe API has also been working to reduce its cost base and should obtain full cost benefit from the distribution centre rationalisation. So, hopefully, it would be able to maintain its profit if not increase much.
While Sigma has indicated further profit improvement for FY13, I think with EPS of around 4.3c/share its current SP (implying PE of 15+) already reflects that improvement and is probably at its short-term peak.
In comparison, API's SP has significant upside potential even if the company in its forthcoming results does no more than maintain last FY's underlying profit (with PE of around 7 or less?).
API Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
