In QE31/10/2017, Astino's net profit rose by 88% q-o-q or 71% y-o-y to RM9.5 million while its revenue rose by 12% q-o-q or 22% y-o-y to RM139 million. Revenue rose q-o-q primarily due to increase in local and oversea market demand. PBT rose q-o-q mainly due to increase in sales and profit margin.
Astino's financial performance recovered from the sharp q-o-q drop in both revenue & profits in QE31/7/2017. In that quarter, revenue dropped q-o-q due to decrease in local market demand. PBT dropped q-o-q mainly due to allowance for diminution in value of inventories amounted to RM5.2 million and decrease in gross profit margin.
(Note: The results for QE31/10/2017 was announced on Dec 28, 2017.)
Table: Astino's last 8 quarters' results
Graph: Astino's last 42 quarters' results
Astino's financial position as at 31/10/2017 is deemed healthy with current ratio at 3.1x and gearing ratio at 0.3x.
Astino (closed at RM1.10 last Friday) is now trading at a trailing PER of 7.9x (based on last 4 quarters' EPS of 14.03 sen). At this PER, Astino is deemed reasonably valued.
Astino is in a long-term uptrend. Its recent peak was in July 2017 and thereafter the share price dropped due to poorer financial performance. See the monthly chart below.
Chart 1: Astino's monthly chart as at Jan 26, 2018 (Source: Malaysiastock.biz)
In early January, Astino broke above its intermediate downtrend line, RR at RM1.00-1.02. This may signal the start of its recovery. See the daily chart below.
Chart 2: Astino's daily chart as at Jan 26, 2018 (Source: Malaysiastock.biz)
Based on improved financial performance, reasonable valuation and mildly bullish technical outlook, Astino could be a good stock for long-term investment.
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