Tuesday, October 04, 2016

BIMB: Potential Bullish Breakout

Technical Outlook

BIMB broke above its upper line of its very gradual downward channel at RM4.15 today. This downward channel dates back to August 2013 or 3 years old. Any price breakout of a long-established "trend" could lead to a significant move.

Chart 1: BIMB's weekly chart as at Oct 4, 2016-10.10am (source: Chartnexus)

Recent Financial Performance

BIMB's latest quarterly results shows its net profit rose 6% q-o-q or 11% y-o-y to RM144 million. Its revenue is mixed- down 6% q-o-q but rose 3% y-o-y to RM839 million.

Table: BIMB's last 8 quarterly P&L

Chart 2: BIMB's last 17 quarterly P&L


BIMB (closed at RM4.14 last Friday) is now trading at a trailing PER of 11.5 times (based on last 4 quarters' EPS of 36 sen). Its price to book is at 1.66 times (based on NTA of RM2.48 per share as at 30/6/2016). In term of valuation, BIMB is fairly valued.


Based on satisfactory financial performance, fairly valuation & potentially bullish technical outlook, BIMB could be a good stock for a trading BUY.


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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