In QE31/7/2019, Astino's net profit dropped 35% q-o-q but rose 131% y-o-y to RM5.5 million while its revenue rose 8% q-o-q or 19% y-o-y to RM153 million. Revenue increased q-o-q primarily due to increase in local market demand. The Group registered a profit before taxation of RM7.3 million, a decrease of RM3.6 million as compared to QE3/4/2019, which was recorded at RM10.9 million, mainly due to allowance for diminution in value of inventories was RM5.0 million higher than the immediate preceding quarter.
Table: Astino's last 8 quarters' results
Graph: Astino's last 49 quarters' results
Astino's financial position as at 31/7/2019 is deemed healthy with current ratio at 2.1x and gearing ratio at 0.4x.
Astino (closed at RM0.71 last Friday) is now trading at a trailing PER of 8.2x (based on last 4 quarters' EPS of 8.7 sen). At this PER, Astino is deemed fairly valued.
Astino has broken above its downtrend line at RM0.65 in early September.
Chart: Astino's weekly chart as at Sep 27, 2018 (Source: Malaysiastock.biz)
Despite the weaker financial performance, Astino could be a good stock for long-term investment based on satisfactory financial position and fair valuation. The stock has a mildly bullish technical outlook after it broke above its downtrend line.
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