Technical Outlook
Muda broke to the upside of its ascending triangle at RM0.97 today. In addition, it broke above the psychological RM1.00 level. The next resistance is at RM1.20-1.40. See Chart 1 & 2 below.
Chart 1: Muda's weekly chart as at July 11, 2011 (Source: Quickcharts)
Chart 2: Muda's monthly chart as at July 1, 2011 (Source: Quickcharts)
Recent Financial Results
Muda's top-line has grown steadily over the past 2 years. Its bottom-line has been flattish. For QE31/3/2011, Muda's net profit dropped by 32% q-o-q or 9% y-o-y to RM7.5 million while its turnover was up 7% q-o-q or 21% y-o-y to RM262 million. The company attributed the lower net profit to adverse movement in USD-RM exchange rate & higher raw material cost.
Table: Muda's last 8 quarterly results
Chart 3: Muda's last 20 quarterly results
Valuation
Muda (at RM1.05 as at 2.55pm) is trading at a PE of 8.8 times (based on last 4 quarters' EPS of 11.82 sen). At this PE, Muda's upside potential may be limited. It could command a PE of 10 times.
Conclusion
Based on technical consideration, Muda could be a good trading BUY.
1 comment:
i think MUDA got buy signal on 27/06/2011.
Post a Comment