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Thursday, February 16, 2017

GASMSIA: Strong Earnings Growth Sustained

Results Update

For QE31/12/2016, Gasmsia's profit after zakat and taxation rose 19% q-o-q or 402% y-o-y to RM51.6 million while revenue dropped 2% q-o-q or 10% y-o-y to RM1.05 billion. Profits rose q-o-q mainly due to higher gross profit in line with the increase in volume of gas sold and tolling fees.
   

Table: Gasmsia's last 14 quarterly results


Graph: Gasmsia's P&L  for last 20 quarterly results

Valuation

Gasmsia (closed at RM2.76 yesterday) is now trading at a PE of 21.5 times (based on lats 4 quarters' EPS of 12.86 sen). Its dividend yield is decent at 2.9%. At this PER & DY, Gasmsia is deemed fairly valued.

Technical Outlook

Gasmsia broke above its downtrend line at RM2.40 in August last year. It is now hoovering around the horizontal support of RM2.75-2.80. Its next resistance will come from the horizontal line at RM3.10.


Chart: Gasmsia's weekly chart as at Feb 15, 2017 (Source: MalaysiaStock.Biz)

Conclusion

Based on improved financial performance and positive technical outlook, Gasmsia is considered a good stock for long-term investment.

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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