Friday, May 10, 2013
MNRB- finally broke above its RM3.20 horizontal resistance
MNRB has broken above the rising 'horizontal line' (AB) at RM3.20 which has capped its advances for the past 4 years. With this breakout, MNRB could enter into an upleg, with next resistance at RM3.60 & RM4.00. Indicators are supportive of an upside move.
Chart 1: MNRB's monthly chart as at May 10, 2013_12.30pm (Source: quickcharts)
Recent Financial Result
Its latest financial result in QE31/12/2012 shows MNRB reported a net profit of RM59 million, a turnaround a net loss of RM12 million incurred in the preceding quarter (QE30/9/2012). This was attributable to an improvement in the claims experience of the Group's reinsurance subsidiary.
Table: MNRB's last 10 quarterly results
Chart 1: Tienwah's last 25 quarterly results
MNRB (at RM3.37 as at 3.45pm) is now trading at a PE of 5.2 times (based on last 4 quarters' EPS of 65.2 sen). At this PE, MNRB is deemed very attractive.
Based on satisfactory financial performance, attractive valuation & positive technical outlook, MNRB could be 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, MNRB.