Monday, August 22, 2016

Tunepro: Quarterly Earnings at a New High

Results Update

For QE30/6/2016, Tunepro's net profit rose by 17% q-o-q or 64% y-o-y to RM26.5 million while revenue was mixed- down 3% q-o-q but rose 9% y-o-y to RM126 million. Revenue dropped by RM4.0 million q-o-q due to decrease of RM6.9 million in GEP which was partially offset by increase in investment income of RM2.9 million. PBT increased by RM9.2 million q-o-q mainly due to an increase of RM12.8 million in pre-tax profits in general insurance, which was partially offset by decreases of RM2.1 million in pre-tax profits in general reinsurance and RM0.7 million in share of profits of associates in Thailand.

Table: Tunepro's last 8 quarterly results

From the chart below, we can see that PBT was able to surpass the previous high of RM27 million convincingly. Is Tunepro's earnings due for takeoff?

Chart 1: Tunepro's last 19 quarterly results

Tunepro (closed at RM1.64 last Friday) is now trading at a PER of 14.4 times (based on last 4 quarters' EPS of 11.36 sen). Tunepro's earning grew by 19.7% in the past 4 quarters- giving the stock a PEG ratio of 0.7 time. As the PEG ratio is less than 1 time, Tunepro is deemed attarctive.

Technical Outlook

Tunepro broke above its downtrend line, RR at RM1.25 in late February. Tunepro is now in an uptrend line, SS with support at RM1.50. Its immediate resistance is from its overhead horizontal line at RM1.80.

Chart 2: Tunepro's weekly chart as at Aug 19, 2016 (Source: 


Based on improved financial performance, reasonable valuation & bullish technical outlook, Tunepro remains a good stock for long-term investment. 

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision

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