For QE30/9/2020, Petgas's net profit increased by 8% q-o-q or 37% y-o-y to RM591 million while revenue rose 0.5% q-o-q or 5.2% y-o-y to RM1.407 billion. The Group maintained its strong performance for plant and facilities reliability across all segments during the quarter under review. Gross profit improved by 9.0% or RM61.0 million to RM735.8 million on the back of lower operating costs by Regasification and Gas Transportation segments mainly due to lower internal gas consumption cost offset by higher repair and maintenance costs. PBT and profit for the quarter were higher by 13.5% or RM96.2 million and 11.5% or RM65.8 million respectively as higher gross profit was supported by higher unrealised foreign exchange gain, negated by lower share of profit from joint venture. During the quarter, the Group recorded higher unrealised foreign exchange gain on translation of USD assets and liabilities totalling RM92.8 million due to strengthening of RM against USD compared to gain of RM20.5 million in the preceding quarter. Lower share of profit was mainly attributable to scheduled shutdown during the quarter at Kimanis Power Sdn Berhad, the Group's 60% joint venture.
Table: Petgas's last 8 quarterly results
Graph: Petgas's last 57 quarterly results
Petgas (closed at RM16.32 in the morning session) is now trading at a PE of 18x (based on last 4 quarters' EPS of 91.6 sen). At this PER, Petgas is deemed fairly attractive.
Petgas has dropped back to its long-term uptrend line with support at RM15.20.
Chart: Petgas's monthly chart as at Nov 19, 2020_12.30pm (Source: Malaysiastock.biz)
Based on satisfactory financial performance, fairly attractive valuation & mildly positive technical outlook, I think Petgas is a good stock for long-term investment.
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