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Monday, March 21, 2016

Magni: Earnings continued to grow

Results Update

For QE31/1/2016, Magni's net profit rose 20% q-o-q or 49% y-o-y to RM26 million while revenue rose 36% q-o-q or 34% y-o-y to RM269 million. Revenue for the current quarter increased q-o-q mainly due to higher revenue for the garment & packaging segments, increase of 42.2% and 3.2% respectively mainly due to higher sales orders received. PBT increased by 19% q-o-q mainly due to higher revenue but was aprtially offset by lower other operating income (due to lower currency exchange gain).


Table: Magni's last 8 quarterly results


Chart 1: Magni's last 28 quarterly results

Valuation

Magni (trading at RM4.48 last Friday) has a trailing PE of 9.1 times (based on last 4 quarters' EPS of 49.04 sen). At this PER, Magni's valuation is still attractive. 

Technical Outlook

Magni is in a strong uptrend. Indicators are generally positive.


Chart 2: Magni's monthly chart as at Mar 18, 2016 (Source: ShareInvestor.com)

Conclusion

Based on good financial performance, attractive valuation & positive technical outlook, Magni remains 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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