Tuesday, May 25, 2010

MBMR's results vroomed UP!

Results Update

MBMR Measat has just announced its results for QE31/3/2010. Its net profit increased by 78% q-o-q or 327% y-o-y to RM40 million while turnover increased by 12% q-o-q or 48% y-o-y to RM364 million. The improved performance was attributable to strong demand for passenger & commercial vehicles as well as the strengthening of the RM against the Japanese Yen, which lifted the operating margin. For the last 8 quarters' results & the highlights of the results for QE31/3/2010, see Taable 1 & 2 below.


Table 1: MBMR's last 8 quarterly results


Table 2: MBMR's financial highlights for QE31/3/2010 (Source: Link to the filling on Bursa Malaysia)


Chart 1: MBMR's 16 quarterly results

Valuation

MBMR (closed at RM2.70 yesterday) is now trading at a PER of 6.6 times (based on last 4 quarters' EPS of 41 sen). Price to Book is about 0.70 time. At these multiples, MBMR is deemed very attractive.

Technical Outlook

MBMR broke above its downtrend line at RM2.35 in October 2009. Thereafter, MBMR rose steadily- initially on a gradual uptrend line ('SS') and later accelerated (as per 'S1-S1'). The stock is now sliding back & it has just broken below S1-S1 at RM2.65. Its next support will be the horizontal line at RM2.50 and then the uptrend line, SS support at RM2.40.


Chart 2: MBMR's week chart as at May 17, 2010 (Source: Quickcharts)

Conclusion

Based on satisfactory financial performance and attractive valuation, MBMR could be a good stock for long-term investment. A good entry level could be at RM2.40-50.

5 comments:

  1. Dear Alex,

    Thanks for your feedback.
    Your "1 million guy story" is very enlightening and served as a caveat to me and i believe to all the investors.

    Good day and take care.

    ReplyDelete
  2. Dear Alex,

    JUST A THOUGHT FOR SHARING........


    If you’ve got money in the stock market, take a deep breath: It’s one of those moments. The market is lurching, and that is precisely when impulsive behaviour can hurt the most.

    Investing can be a delightful pastime when stocks are rising. When they are falling — which has often been the case lately — it can be excruciating. But hasty decisions taken at anxious moments can be extremely costly.

    “When a lot of people reach their threshold of pain, they sell their stocks and try to move to more secure holdings — cash, bonds, treasuries,Gold,silver,... But these decisions don’t work out very well for most people...


    There are two other “scenarios” are possible, but much LESS LIKELY.. One is a global meltdown, with the Greek crisis morphing into “Lehman II”, the probability of which has been reduced by prompt action by European authorities. And the other is a quick resumption of the roaring bull market that took the S&P 500 up 80%, or the moving up of FKLI above 1600 , OR the HSI above 2600,OR FTSE to 6000, , But there are too many problems for that to be very likely in the next month or two, or even three.

    For long-term diversified investors, , it probably makes sense to ride out the storm, and, maybe, add to your holdings. “Keep your shoulder harness on, and your seatbelt secured, and your life should be OK,” .....

    Thanks

    ReplyDelete
  3. Dear Alex,

    Just a Fresh News for Sharing ....

    North Korea has just ordered her troops /army to get ready for War with South Korean Allies.

    This is a latest news which will further add pressure on the already Volatile World's Equity / Forex Markets.

    Continue to keep a close watch on this unwelcome news! Pressure on all currencies vs the USD in the FX is now developing....

    Thanks

    ReplyDelete
  4. Pride and ego indeed, Alex. The guy could be anyone of us for practical reasons. So, my old dad always say "Live within means and limits, there are always opportunities on the green hill"

    Appreciates your earlier feedback. Life will be more meaningful with all these stories, after all this is what we do when we get old, talk abt the old days.

    ReplyDelete