For QE31/1/2019, BAuto's net profit rose 10% q-o-q or 100% y-o-y to RM81 million while revenue rose 13% q-o-q or 39% y-o-y to RM778 million.
Group revenue rose q-o-q mainly due to higher sales volume from both the domestic and the Philippine operations. Domestic sales continues to be strong post GST tax holiday period as the Group is still anchored to meeting unfulfilled customers booking comprising mostly of the CX-5 and CX-3 models as a result of the Group's offer to absorb the SST for bookings received prior to 1 September 2018 but vehicle delivery made after the re-introduction of SST.
The Group pre-tax profit improved by RM8 million or 9% mainly due to increase in the Group's revenue, partly offset by lower gross profit margin from both the domestic and the Philippine operations.
Table: BAuto's last 8 quarters' financial performance
Graph: BAuto's last 27 quarters' financial performance
As at 31/1/2019, BAuto's financial position is deemed satisfactory with current ratio at 2.2 times and total liabilities to total equity at 0.8 time.
BAuto (closed at RM2.24 yesterday) has a fair PER of 10 times (based on last 4 quarters' EPS of 22.61sen). BAuto paid quarterly dividends which totaled 15.75 sen over the past 4 quarters. This translates to a dividend yield of 7.0%. Based on the above, BAuto is a fairly attractive stock.
BAuto has been moving in sideways manner for the past 3 years. For now, the range is between RM1.85 and RM2.40.
Chart: BAuto's weekly chart as at Mar 13, 2019 (Source: Malaysiastock.biz)
Based on satisfactory financial performance & financial position and fair valuation, BAuto is a good stock for long-term investment.
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