Chart: MBSB's daily chart as at Oct 31, 2011 (Source: Quickcharts)
1st UPDATE: MBSB has just reported a very good set of results for QE30/9/2011. Its net profit for 9-month ended 30/9/2011 is RM241.6 million- an increase of 81% over the net profit for the same period last year. If it can maintain its current growth, it is likely to achieve a full-year EPS of 40 sen for FY2011. At RM1.73, MBSB is now trading at a current PE of 4.3 times. It will be very interesting to see how the cheap valuation would match-up against the technical resistance as noted in this post. If it can break above the resistance, the technical outlook would change from cautious to bullish.
2nd UPDATE: A reader, 小混混 has pointed out that the 9-month EPS should be about 20 sen. That's correct because MBSB had a Right Issue of 5-for-7 (c/w 1 free warrant for every share subscribed) in May. Based on this, the annualized EPS for FY2011 should be about 28 sen. Based on its closing price of RM1.73 yesterday, MBSB is now trading at a current PE of 6.2 times. Hat tip to 小混混.
5 comments:
Mbsb just posted 134% profit jump qoq... Will you think it will break 1.80 even if the market sentiment not so good?
Hi Butcher,
MBSB reported a good result for QE30/9/2011. The timing of my post could be "better". If you annualized its EPS & factored in further growth to its earning, you may get a fullyear EPS of 40 sen for FY2011. At the current price of RM1.73, its current PE if only 4.3 times. There is a good chance that MBSB would blast above the resisatnce of RM1.80.
EPS should not be 40 sen, MBSB just completed it's right issue, the shares issued is increased from 700M to 1.2B, the actual EPS up to date is approx 20sen.
The actual EPS up to date is approx 20sen because of total shares issued are increased to 1.2B from 700M through it's right issue recently.
Hi Alex, what is your take in Olympia?
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