Maybulk has announced its results for QE30/9/2010 recently. Its net profit increased by 178% q-o-q or 26% y-o-y to RM88 million while turnover increased by 14% q-o-q or 11% y-o-y to RM109 million. In the past few quarters, Maybulk's performance was freed from the lumpy gain from the disposal of vessels. For QE30/9/2010, Maybulk's turnover grew due to increased revenue days even though the shipping rates slipped slightly. Higher turnover coupled with a slightly lower operating expense led to higher net profit.
Table: Maybulk's last 8 quarterly results
Chart 1: Maybulk's 18 quarterly results
Valuation
Maybulk (closed at RM2.91 yesterday) is now trading at a trailing PE of 11 times (based on last 4 quarters' EPS of 26 sen). With the weak outlook for shipping rates, Maybulk is deemed fairly valued at the present PE multiple.
Technical Outlook
Maybulk has been consolidating within a symmetrical triangle for the past 18 months. A breakout above RM3.00 could signal the start of an upleg for the stock. Conversely, a break below RM2.80-85 would signal a bearish outlook for the stock.
Chart 2: Maybulk's weekly chart as at Nov 22, 2010 (Source: Quickcharts)
Conclusion
Based on improving financial performance, Maybulk is worth close monitoring. A breakout above RM3.00 would be a trigger for a trading BUY for this stock.
2 comments:
May u give comment n enlighten us on CCB , Haio and Star for its future outlook on long term investment . Pls accept my thanks in advance.
Hi ayseng
I will give you a mixture of technical & fundamental take:
1. Haio's operational results have not stabilized. Note the recent spate of funny new ventures that it has invested in. This is a sign of desperation. Avoid Haio for now.
2. CCB is in a downtrend. Its immediate support at RM4.00 & then RM3.50. This stock can be a long-term BUY at these levels.
3. Star was starting to move up as investors began to discover its improving performance. However the takeover by MCA could put a spanner at this work-in-progress. We will have to wait & see how this new management team can maintain Star's recent good run.
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