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Friday, May 10, 2013

MNRB- finally broke above its RM3.20 horizontal resistance


Technical Outlook

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

Valuation

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.

Conclusion

Based on satisfactory financial performance, attractive valuation & positive technical outlook, MNRB could be 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, MNRB.

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