For QE30/6/2013, MBSB reported a net profit of RM165 million- unchanged from the immediate preceding quarter (of RM166 million) but a big jump from the same quarter last year (of RM94 million). The company attributed the q-o-q improvement in bottom-line to the profit contribution from Islamic operations, lower amortisation cost associated to the personal financing disbursement and was partially set off by higher operating expenses and impairment allowance.
Table: MBSB's last 8 quarterly results
Chart 1: MBSB's last 36 quarterly results
Concern about 'Shadow Banking'?
MBSB (at RM3.10 yesterday) is now trading at a PE of 8.4 times (based on last 4 quarters' EPS of 36.74 sen). At this PE, MBSN is still deemed very attractive.
MBSB is in a steady uptrend since breaking above the strong horizontal line at RM0.85 in March 2011. Its immediate resistance is at the horizontal line at RM3.20 while its immediate support is at the psychological RM3.00 mark.
Chart 3: MBSB's monthly chart as at July 31, 2013 Source: quickcharts)
Based on improving financial performance & relatively attractive valuation, MBSB is still a good stock for long-term investment. However, regulatory changes are coming to the NBFIs and this will certainly restrict the ability of MBSB to report continued growth in its earning. We must keep a close watch on this development and take action if the need arises. For now, the rating for MBSB should be lower from BUY to HOLD.
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.