MFlour has just announced its results for 3Q2009 ended 30/9/2009. Its net profit increased by 73% q-o-q or 59% y-o-y to RM24.6 million. Turnover increased by 3.7% q-o-q but dropped 4.5% y-o-y to RM302 million. MFlour's pre-tax & net profit for QE30/9/2009 matched or nearly matched the high recorded in QE31/3/2008. The q-o-q improvement was attributable to higher revenue in the feeds segment and better margin for the feeds & flour segments.
Table 1: MFlour's 8 quarterly results
Chart 1: MFlour's 14 quarterly results
Financial Position
MFlour's financial position as at 30/9/2009 is deemed healthy, with current ratio at 1.7 times and gearing ratio at 0.6 times. Cash & bank balances stood at RM121 million or RM1.13 per share.
Valuation
MFlour (closed at RM3.06 yesterday) is now trading at a PE of 6.4 times (based on last 4 quarters' EPS of 48 sen). Excluding cash reserves, MFlour's PE stood at 4.0 times. For a consumer stock, MFlour is very attractively priced.
Technical Outlook
Off its December 2005 low, MFlour was moving higher, supported by uptrend line, S-S1. The 2008 market selldown caused the share price to break below that uptrend line. Now, it is trending higher in a new uptrend line, S-S2 with the earlier uptrendline, S-S1 presently acting as a resistance.
Chart 2: MFlour's weekly chart as at Nov 9, 2009_10.20am (Source: Quickcharts)
Conclusion
With its improving financial performance, attractive valuation & positive technical outlook, MFlour is a good stock for long-term investment.
Dear Alex,
ReplyDeleteDo Hiaptek show bullish signal?
Thank you.
wat about huaan? a healthy pullback?
ReplyDeleteHi yumi,
ReplyDeleteHiaptek needs to surpass its recent high of RM1.50-51. Thereafter, it would face stiff resistance at RM1.60-70.
Its recent strong rally may be due to the good results for 4Q2009 ended 31/7/2009, where it recorded a net profit of RM47 million. For FY2009, net profit was RM43 million. The reason for that good quarter was writeback of provision for diminution in value of inventory and forex gain. Since these are not likely to recur, Hiaptek's results going forward may disappoint.
Hi Wedding Gifts, Favours, Bells...
ReplyDeleteThere is not much guidance for Huann from the chart. The stock is range-bound between RM0.46 & RM0.60.
Its financial performance was disappointing for 1H2009, with net loss of RM37 million on sale of RM613 million.