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Friday, February 26, 2016

Mudajya: Is this recovery?

Result Update

QE31/12/2015 is the 2nd profit quarter for Mudajya after it reported a huge net loss of RM100 million in QE31/12/2014. In the latest quarter [QE31/12/2015], Mudajya's net profit increased by 13% q-o-q to RM16 million while revenue rose 52% to RM164 million. Its PBT grew 13% q-o-q due to improved PBT achieved by all the 4 segments: construction, property, power & others. Except for the power segment, the other segments saw sequentially higher revenue. The sharpest rise in revenue came from the construction segment due to the completion of major projects such as MRT & Pengerang Cogen.


Table: Mudajya's last 8 quarterly results


Chart 1:Mudajya's last 29 quarterly results

Valuation

Mudajya (closed at RM1.15 yesterday) is now trading at a PBR of 0.6 times (based on NTA of RM2.05 as at 31/12/2015). Mudajya has a negative EPS which makes its PER not meaningful.

Technical Outlook

Mudajya has broken above its intermediate downtrend line at RM1.10 in October last year. Despite the breakout, the share price slipped back to test the psychological RM1.00 mark before rallying to a high of RM1.50 in early January. A medium-term uptrend line has formed and its support is at RM1.15.


Chart 2: Mudajya's weekly chart as at Feb 25, 2016 (Source: ShareInvestor)
 

Chart 3: Mudajya's monthly chart as at Feb 25, 2016 (Source: ShareInvestor)

Conclusion

Based on improved financial performance & improving technical outlook, Mudajya could be a stock for a 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, Mudajya.

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