Monday, February 04, 2013

MBSB- bottom-line soared

Results Update

For QE31/12/2012, MBSB's net profit increased by 104% q-o-q or 119% y-o-y to RM184 million while revenue was mixed- dropped by 6% q-o-q but rose by 40% y-o-y- to RM487 million. Pre-tax profit increased q-o-q due to higher income from Islamic banking operations, higher other operating income & lower allowance for impairment losses on loans, advances & financing. This was partially offset by higher other operating expenses. Net Profit jumped q-o-q due to over-provision for taxation for prior years of RM21.9 million. Interestingly, MBSB provided for under-provision for taxation for prior years of RM22.3 million for QE30/9/2012.

Table: MBSB's last 8 quarterly results

Chart 1: MBSB's last 34 quarterly results


MBSB (closed at RM2.26 last Thursday) is trading at a gross PE of 6.2 times (based on gross EPS for the last 4 quarters of 36.74 sen). After including the 503 million warrants outstanding, the net EPS would be about 26 sen. This would give us a net PE of 8.7 times. Overall, MBSB is deemed quite attractive.

Technical Outlook

The stock is still in an uptrend. It is resting on the 40-week EMA line & horizontal line at RM2.20.

Chart 2: MBSB's weekly chart as at Jan 31, 2013 (Source: quickcharts)


Based on good financial performance, attractive valuation & positive technical outlook, MBSB is rated a good stock for long-term investment.

In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, MBSB.

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