Mamee-Double Decker (M) Bhd ('Mamee') is principally involved in the manufacture and marketing of fast moving consumer products, such as food, dairy products and soft drinks.
Recent Financial Results
Its recently announced results for 2Q2009 ended 30/6/2009 shows that Mamee can maintain its top-line & bottom-line in the difficult economic environment. Its net profit increased by 1.4% q-o-q or 185% y-o-y to RM10.7 million while turnover increased by 12.5% q-o-q or 4.3% y-o-y to RM103 million.
Table 1: Mamee's 8 quarterly results
Over 21 quarters, Mamee's turnover grew from RM69 million in QE30/6/2004 to RM103 million in the recently completed QE30/6/2009- a compounded annual growth rate of 9%. At the same time, its net profit grew from RM2.6 million to RM10.7 million- a compounded annual growth rate of 33%.
Chart 1: Mamee's 21 quarterly results
Valuation
Mamee (closed at RM2.50 yesterday) is now trading at a trailing PE of 5.4 times (based on last 4 quarters' EPS of 46 sen) or at Price to Book of only 1 time. At these multiples, Mamee is deemed very attractive. With its high growth rate, I believe Mamee could easily trade at a PE of 10 times; thus giving the stock a target of at least RM4.60.
Technical Outlook
Mamee is in a short-term uptrend, with support at RM2.30. Its immediate resistance is at RM2.60 and thereafter at RM2.75. See the daily & weekly charts below.
Chart 2: Mamee's daily chart as at Aug 20, 2009 (Source: Quickcharts)
Chart 3: Mamee's weekly chart as at Aug 20, 2009 (Source: Quickcharts)
Conclusion
Based on good financial performance; attractive valuation; and positive technical outlook, Mamee is a good stock for medium- & long-term investing.
3 comments:
Sharing more info about Mamee:
1) http://ooibenghooi.blogspot.com/2009/08/mamee-yum-yum.html
2) http://ooibenghooi.blogspot.com/2009/06/mamee-double-decker-undervalued-gem.html
Hi Ooi Beng Hooi,
Thanks for the info. I've visited your blog. I see that you have also posted on Success Transformer, which is having a good rally. I enjoyed your post on Cheras Woo Pin Fish Head Noodle. Visiting Makan blogs is one of my favorite pastime.
Links: http://ooibenghooi.blogspot.com/2009/08/success-transformer-corporation-has-her.html
http://ooibenghooi.blogspot.com/2009/08/cheras-woo-pin-fish-head-noodle.html
Hi Alex Lu & Ooi Beng Hooi,
Thank you very much on all the sharing & effort. I have always wanted to learn more on investment and financial related knowledge but don't know where and how to start, read books somtimes also not truely understand the financial meaning.
I have finally met the right person and glad that i join the investment program though it is a paid program but no regret of it cos i met the right fren who introduce your blog next trade to me and lead me to an eye open world on investment with all FOC. Special thanks to Mei Yong Ng whom i met in the class .
I really appreciate all of your effort to share and interest bond us together.
Hope one day I can master the knowledge and do the same as yours and helping those who interested on investment.
Last but not least, thank you all of you and wishing you a good health and prosperity.
Sincerely,
ppfoo
Post a Comment