In QE31/3/2019, Carlsbg's net profit increased 30% q-o-q or 8% y-o-y to RM88 million while revenue rose 26% q-o-q or 20% y-o-y to RM660 million.
The Group's revenue increased q-o-q mainly due to higher sales in Malaysia following the successful execution of Chinese Near Year promotions. The Group’s profit from operations increased q-o-q mainly due to higher revenues in Malaysia partly offset by the increase in commercial investments.
Table: Carlsbg's last 8 quarterly results
From Chart 1 below, we can see that Carlsbg's quarterly revenue and profits are all at all-time high.
Graph: Carlsbg's last 54 quarterly results
Carlsbg (closed at RM24.24 yesterday) is now trading at a PE of 26 times (based on an annualized EPS of 92.86 sen). At this PER, Carlsbg is deemed fairly valued. In addition, it has an attractive dividend yield of 4.2%.
From the monthly chart, it looks like Carlsbg may continue with its prior uptrend. As the MACD has crossed above its MACD signal line, it is likely that Carlsbg may experience near term weakness.
Chart 1: Carlsbg's weekly chart as at May 15, 2019(Source: Malaysiastock.biz))
Chart 2: Carlsbg's monthly chart as at May 15, 2019(Source: Malaysiastock.biz))
Based on satisfactory financial results, fair valuation & constructive technical outlook, I would rate Carlsbg a HOLD for now.