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Tuesday, October 25, 2016

IBhd: Good Earnings Reported

Result Update

For QE30/9/2016, IBhd's net profit rose 53% q-o-q or 162% y-o-y to RM22.4 million while revenue rose 31% q-o-q or 106% y-o-y to RM114 million. The better performance in both the revenue and profit was mainly due to higher revenue recognition of on-going projects for the Property Development segment as well as higher revenue and profit before tax for the Leisure segment.


Table: IBhd's last 8 quarterly P&L


Chart 1: IBhd's last 13 quarterly P&L

Valuation

I-Bhd (closed at RM0.61 yesterday) is now trading at a trailing PER of 9.4x (based on last 4 quarters' EPS of 6.53 sen). At this PER, I-Bhd is deemed fairly valued.

Technical Outlook

IBhd will soon test the strong resistance from the horizontal line at RM0.63. Looking at the charts for IBhd-LB & IBhd-WA, I believe that there is a fairly good chance that IBhd will soon break above this horizontal line.


Chart 2: I-Bhd's weekly chart as at Oct 24, 2016 (Source: Chartnexus)


Chart 3: I-Bhd-LB's weekly chart as at Oct 24, 2016 (Source: Chartnexus)


Chart 4: I-Bhd-LB's weekly chart as at Oct 24, 2016 (Source: Chartnexus)

Conclusion

Based on good financial performance and fair valuation, I-Bhd could be a good stock to consider for long-term investment. Its near-term outlook may still be neutral as the stock has not yet launched into its next upleg.

Note:

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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