For QE30/9/2017, Freight's net profit increased by 1.8% q-o-q & 12.5% y-o-y to RM5.9 million while revenue rose 2.9% q-o-q & 21.9% y-o-y to RM128 million. Revenue increased q-o-q mainly due to higher activities in Airfreight, 3PL & Warehousing, Landfreight and other Supporting services.
PBT decreased by 1.7% due to higher losses in Tug & Barge service despite better performance from other divisions such as Seafreight and Airfreight. NP however rose q-o-q due to lower tax expense as a result of higher deferred tax recognized.
Table: Freight's last 8 quarterly results
Graph: Freight's last 38 quarterly results
As at 30/9/2017, Freight's financial position is deemed satisfactory with current ratio at 2.3x and gearing ratio at 0.6x.
Freight is struggling to hang onto its long-term uptrend line, though it's not very convincing. Strictly speaking, it is below my preferred uptrend line, SS. However if we choose to be a bit lenient, we can fit the price trend into the next uptrend line, S-S1. The deciding factor will be whether the MACD can climb back above the zero line. the jury is out.
Chart: Freight's monthly chart as at Nov 29, 2017 (Source: Malaysiastock.biz)
Freight (closed at RM1.25 yesterday) is trading at a PE of 10.7 times (based on last 4 quarters' EPS of 11.67 sen). The stock is trading near its fully value.
Based on good financial performance and position, Freight is considered a good stock for long-term investment. However its next upleg may not begin until it has sorted out the technical picture, which is mildly negative.
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