For QE30/6/2017, Asiafle's net profit dropped by 12% q-o-q to RM14.2 million on the back of an unchanged revenue of RM91 million. Compared to the same quarter last year, net profit rose marginally by 1% while revenue was also unchanged.
Profit before tax dropped 9.4% q-o-q mainly due to a much lower share of profit of associate (June 2017: RM0.94 million cf. Mar 2017: RM 3.64 million) which was partially offset by improvement in investing results (June 2017: RM 2.0 million cf. Mar 2017: RM 1.4 million) and higher foreign exchange gain (June 2017: RM 1.4 million cf. Mar 2017: RM 368,000). (Note: Asiafle's QE30/6/2017 was announced on 29 August.)
Table: Asiafle's last 8 quarterly results
Graph: Asiafle's past 48 quarterly results
Asiafle's financial position is deemed satisfactory as at 30/6/2017, with current ratio at 5.0x and gearing ratio at 0.15x. It was sitting on a net cash balance of RM43 million.
New Business Venture
Asiafle (closed at RM3.05 yesterday) is now trading at an attractive PER of 10.5 times (based on last 4 quarters' EPS of 29.08 sen). The stock pays a decent dividend yield of 5.2%. Based on attractive DY and fair PER, Asiafle is deemed to be an attractively priced.
From the monthly chart below, we can see that Asiafle is now testing its long-term uptrend line at RM3.00.
Chart 1: Asiafle's monthly chart as at Oct 16, 2017 (Source: Malaysiastock. biz)
Chart 2: Asiafle's weekly chart as at Oct 16, 2017 (Source: Malaysiastock. biz)
Based on satisfactory financial performance & position, fairly attractive valuation & positive long-term technical outlook, Asiafle could be a good stock for long-term investment.
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