Last month, it announced plan to acquire AFE Solutions Ltd from its 2 shareholders, Reuters International Holdings S.A.R.L. and Systex Capital Group Inc for USD20.6 million. The acquisition of AFE would enable N2N to have a strong presence in the provision of financial data & trading solution in Hong Kong, Macau & Vietnam. For more, go here.
Historical Financial Performance
N2N's financial performance has been on a steady rise after the Global Financial Crisis.
Graph 1: N2N's last 10 years' P&L
Recent Financial Result
Table: N2N's last 8 quarters' P&L
Graph 2: N2N's last 12 quarters' P&L
Latest Financial Position
N2N's financial position is very strong. As at 30/9/2016, it has net cash, FDs & financial assets totaling RM101 million (or, 21 sen per share). This gave the group a current ratio of 18x and a gearing ratio of less than 0.1x.
N2N (closed at RM0.78 yesterday) is now trading at a PER of 33x (based on last 4 quarters' EPS of 2.4 sen). If the net cash is deducted from the share price, its PER would be reduced to 24x. Based on earning CAGR of 28% over the past 3 years, its PEG ratio is 0.86x. This means its valuation is acceptable.
N2N is resting on its "arching" uptrend line support of RM0.75.
Chart: N2N's monthly chart as at Dec 5, 2016 (Source: ShareInvestor)
Based on good financial performance, strong financial position, fairly attractive valuation & still positive technical outlook, N2N could be a good stock for long-term investment.
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