Measat has just announced its results for QE31/3/2010. Its net profit increased by 137% q-o-q to RM49.8 million on the back of a marginal 1.1%-increase in turnover to RM70.5 million. Compared to the previous corresponding quarter, Measat's bottom-line turned around from a net loss of RM41.5 million (in QE31/3/2009) while turnover was up 30.4%. The improved bottom-line was attributable to forex translation gain of RM41.7 million. If the impact of the forex translation gain is excluded, Measat's net profit would still be up by 42% to RM12.5 million.
Table 1: Measat's last 8 quarterly results
Table 2: Measat's adjusted profit for QE31/3/2010 cf QE31/12/2009 (Source: Link to the filling on Bursa Malaysia)
Chart 1: Measat's 12 quarterly results
Valuation
Based on Measat (closed at RM2.93 on Friday) is now trading at a PER of 23 times (based on annualized, adjusted net profit of RM12.5 million fro QE31/3/2010). At this multiple, Measat is deemed fully valued.
Technical Outlook
Measat has strong resistance at RM2.90-3.00. Its support is at RM2.40-2.50.
Chart 2: Measat's week chart as at May 17, 2010 (Source: Tradesignum)
Conclusion
Measat is deemed fully valued at the present price. As such, it is a good idea to take profit on this stock.
2 comments:
Dear Alex,
Is Petra(7108)now worth buying at double bottom?
Thank you.
Hi Yumi,
The horizontal support of RM1.20 has been tested many times since October 2008 and it's still standing. To me, that's a very strong support. A trader can try a trade at this level.
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