For QE31/12/2016, CMSB's net profit rose 73% q-o-q or 30% y-o-y to RM102 million while revenue was mixed, up 26% q-o-q but down 11% y-o-y to RM450 million. The divisions that reported higher PBT q-o-q were the Construction Materials & Trading, Construction & Road Maintenance, Property Development and the Others Divisions. Share of joint ventures’ results also improved almost by threefold. The Property Development Division reported a higher PBT in the current quarter due to the profit recognition from a land sale. The ‘Others’ Division recorded a higher PBT from the profit recognition from a land sale and foreign exchange difference in the current quarter.
Table: CMSB's last 8 quarters' P&L
Graph: CMSB's last 14 quarters' P&L
CMSB (closed at RM4.10 last Friday) has a PER multiple of 26 times (based the last 4 quarters' EPS of 15.76 sen). However, if CMSB can maintain its earning similar to what it had achieved in the last 2 quarters, then CMSB's full-year EPS would be about 30 sen. This will lower its PER to about 14 times. At a PER of 14 times, CMSB is deemed fairly attractive.
CMSB broke above its intermediate downtrend line, RR and the horizontal line at RM4.00 about 6 weeks ago. Coupled with its MACD going above the zero line, we can conclude that CMSB is now in an uptrend.
Chart: CMSB's weekly chart as at Feb 24, 2017 (Source: ShareInvestor.com)
Based on good financial performance, exciting prospect, fairly attractive valuation and positive technical outlook, CMSB could be a good stock for long-term investment.