For QE30/9/2016. MFCB's net profit rose 35% q-o-q or 35% y-o-y to RM36 million while revenue rose 9% q-o-q or 48% y-o-y to RM215 million. Net profit rose more than the increase in PBT due to lower effective tax rate - mainly due to the lower effective tax rate for construction profit from the Don Sahong Hydropower project, foreign exchange translation gains which are non-taxable and over-provision of income tax in the previous financial year- and foreign currency translation difference for foreign operations of RM8.0 million and fair value changes of available-for-sale financial assets of RM3.3 million.
Table: MFCB's last 10 quarterly results
Graph: MFCB's last 13 quarters' P&L
MFCB (closed at R2.34 last Friday) is now trading at a trailing PER of 6.7x (based on last 4 quarters' EPS of 34.99 sen).MFCB enjoys steady growt, with earnings CAGR of 20% in the past 2 years. This gives the stock a PEG ratio of less than 1 time.
In October, MFCB has broken above the resistance from the horizontal line at RM2.12. This breakout could send the stock to RM2.50.
Chart: MFCB'sweekly chart as at Nov 25, 2016 (Source: Chartnexus)
Based on good financial performance, attractive valuation and bullish technical outlook, MFCB is a good stock for long-term investment.