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Sunday, December 27, 2015

Magni: Earnings continued to rise

Results Update

For QE31/10/2015, Magni's net profit rose 39% q-o-q or 170% y-o-y to RM21.6 million while revenue rose 2% q-o-q or 22% y-o-y to RM197 million. Revenue increased q-o-q mainly due to the favorable effects of USD against Ringgit arising from export of garments. PBT for the current quarter increased q-o-q mainly due to favorable currency exchange rate, lower operating expenses and higher other operating income.


Table: Magni's last 8 quarterly results


Chart 1: Magni's last 27 quarterly results

Valuation

Magni (trading at RM4.49 on Dec 23, 2015) has a trailing PE of 6.8 times (based on last 4 quarters' EPS of 65.7 sen). At this PER, Magni's valuation is still attractive. 

Technical Outlook

Magni is in an upward channel with support at RM2.80 & resistance at RM4.80.


Chart 2: Magni's monthly chart as at Dec 23, 2015 (Source: ShareInvestor.com)

From the daily chart, we can see a line ('AB') connecting all the recent peaks. If the stock can breajk through this at RM4.60, it may go to RM5.50-5.60.


Chart 3: Magni's daily chart as at Dec 23, 2015 (Source: ShareInvestor.com)
 

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Magni is still 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, Magni.

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