MSNiaga's net profit improved in QE31/12/2007

MSNiaga has just announced its results for 4Q2007 ended 31/12/2007. For QE31/12/2007, MSNiaga's net profit increased by 148% q-o-q or 75% y-o-y to RM8.6 million. Turnover increased by 38% q-o-q or 36% y-o-y to RM119 million. For FY2007, MSNiaga's net profit declined by 14% from RM14.7 million to RM12.7 million, while its turnover has increased by 12.5% from RM316 million to RM356 million. The lower net profit for FY2007 was attributable to lower margins & increased investment in human resources.



MSNiaga (closed at RM1.47 as at Feb 27) is now trading at a trailing PE of 7 times (using its FY2007 EPS of 21 sen) or at Price to Book of 0.5 times (using its NTA per share of RM2.95 as at 31/12/2007). At these multiples, MSNiaga is deemed inexpensive.

Chartwise, MSNiaga is still trending lower, with horizontal support seen at RM1.45. There is no sign yet that the stock is about to reverse upwards.


Chart: MSNiaga's daily chart as at February 27, 2008 (courtesy of Quickcharts)

Based on improving performance, MSNiaga is good for slow accumulation. This stock was recommended as a possible contrary play earlier (go here).