Astino is involved in the manufacture & sale of metal roof sheets & other building related products.
Recent Financial Results
Astino has just reported its quarterly result for QE31/1/2007, where its net profit increased 7.6% q-o-q or 193% y-o-y to RM5.3 million while its turnover increased by 14.2% q-o-q or 43.1% y-o-y to RM72.9 million. When we compared the last 4 quarters with the preceding 4 quarters, we can see that its net profit has increased by 94.5% from RM8.5 million to RM16.5 million while its turnover has increased by 36.7% from RM200 million to RM274 million.
Valuation
Based on the last 4 quarters' EPS of 13.1 sen & Astino's closing price of RM0.67 as at March 30, Astino is now trading at a PE of 5.1 times. This is an undemanding multiple for any stock, even a small-cap such as Astino.
Technical Outlook
Astino's technical picture has not been exciting for a long while until end of December last year. This was when the stock has finally broken above its long-term downtrend line at the RM0.53/55 level. After a sharp run-up in the share price to RM0.80, the share has corrected back to the RM0.50 level! For the past 1 month, the stock has been rising steadily, with support at RM0.64/65 & RM0.60. These could be good entry level for this stock
Chart: Astino's daily chart as at March 30
Conclusion
Astino is an attractive small-cap stock. Its technical outlook may have turned positive as its share price had finally broken above its downtrend line. Based on this, Astino is a good BUY for medium-term investment.
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