For QE310/4/2019, Redtone's net profit dropped 11% q-o-q but rose 53% y-o-y to RM4.8 million while revenue rose 62% q-o-q or 132% y-o-y to RM73 million. Revenue rose q-o-q mainly due to higher revenue from Managed Telecommunication Network Services ("MTNS") segment.
Table: Redtone's last 8 quarterly results
Graph: Redtone's last 33 quarterly results
As at 30/4/2019, Redtone's financial position is healthy with current ratio at 2.5 times and gearing ratio at 0.5 time.
Redtone (closed at RM0.305 yesterday) is now trading at a trailing PE of 15 times (based on last 4 quarters' EPS of 2.01 sen). At this PE, Redtone is still deemed attractive for a turnaround stock with room for further growth.
Redtone is trying to stay above its long-term downtrend line, RR as well as its intermediate uptrend line, RR- both at RM0.29.
Chart 1: Redtone's weekly chart as at Jun 25, 2019 (Source: Malaysiastock.biz)
Chart 2: Redtone's daily chart as at Jun 25, 2019 (Source: Malaysiastock.biz)
Based on improved financial performance, healthy financial position and mildly bullish technical outlook, Redtone could be a good stock for long-term investment.
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