Friday, May 03, 2013

MBSB- an attractive finance stock

Result Update
MBSB has just announced its result for QE31/3/2013. Its net profit dropped 9.5% q-o-q but rose 109% y-o-y to RM166 million while revenue rose 15% q-o-q or 48% y-o-y to RM562 million. The q-o-q decline in net profit was attributable to the gain of RM55.4 million from the disposal of property development by a wholly-owned subsidiary accounted for in the immediate preceding quarter, QE31/12/2012. If this exceptional gain is excluded, MBSB's pre-tax profit actually rose by 25% or RM47 million.


Table: MBSB's last 8 quarterly results


Chart 1: MBSB's last 35 quarterly results

Valuation

MBSB (at RM2.77 as at 4.15pm) is now trading at a PE of 5.3 times (based on annualized EPS of 52 sen). At this PE, MBSN is deemed very attractive.

Technical Outlook

MBSB is in a steady uptrend, with immediate support at RM2.65.


Chart 2: MBSB's daily chart as at May 3, 2013_4.15pm (Source: quickcharts)


Chart 3: MBSB's weekly chart as at May 3, 2013_4.15pm (Source: quickcharts)

Conclusion

Based on improving financial performance & relatively attractive valuation, MBSB is a good stock for long-term investment.

Note: 
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.

2 comments:

yvonne yip said...

Hi Alex

Is it the right time to buy MBSB now since the price is low? Also how about airasia?

Thank you

Cheers
Yvonne

Alex Lu said...

Hi yvonne yip

MBSB has just broken its uptrend line at RM2.40 in October last year. It is now trading in sideways but if it breaks below RM2.20, it may enter into a downtrend.

In January, I posted that Airasia has broken its long-term uptrend line at RM2.50. If I were to redraw that uptrend line (or shift it lower), the support of the long-term uptrend line would be at RM2.20-2.25. Recently, it tested this support & recovered some lost ground. We will have to wait & see whether it will continue to recover from here.

Based on the above, I would rate these stocks a HOLD. Airasia could be a trading BUY if it can surpass the RM2.50 level while MBSB could be a trading SELL if it breaks the RM2.20 level.