For QE30/9/2016, MKH's net profit rose 34% q-o-q or 107% y-o-y to RM50 million while revenue rose 43% q-o-q or 16% y-o-y to RM404 million. Profit before taxation rose y-o-y mainly contributed by the property and construction division from its on-going and new development projects and the turnaround in the plantation division from a loss before tax of RM31.1 million (included unrealized foreign exchange losses of RM17.7 million) in QE30/9/2015 to a profit before tax of RM12.7 million (included unrealized foreign exchange gains of RM7.4 million). PBT improved q-o-q mainly due to
Table: MKH's last 10 quarterly results
Graph: MKH's last 15 quarterly results
MKH (closed at RM2.82 last Friday) is now trading at a trailing PER of 5.8x (based on last 4 quarters' EPS of 48.9 sen). In addition to being very attractively priced at a low PER, MKH has a high growth - with earnings CAGR of 36% in the past 2 years. This gives the stock a PEG ratio of less than 1 time. This makes MKH an exceptional growth stock, trading like a cheap value stock.
(Updated: MKH has announced a dividend of 7 sen which will go ex on December 16. For more, go here)
MKH is in an intermediate uptrend line with support at RM2.70. Immediate resistance will come from the overhead horizontal line at RM2.98-3.00.
Chart: MKH's weekly chart as at Nov 25, 2016 (Source: Chartnexus)
Based on satisfactory financial performance, attractive valuation and positive technical outlook, MKH is rate a STRONG BUY as a growth/value stock.