MNRB announced its results for QE31/3/2011. It returned to profitability with a net profit of RM40.2 million on the back of a 13%-increase in turnover to RM362 million. Compared the immediate preceding quarter QE31/12/2010, its net profit increased by 10.5% while turnover slipped 3.5%.
In an Analysts Briefing yesterday (May 31), Datuk Ramlan Abdul Rashid, Group Chief Operating Officer of MNRB said, “The higher revenue was a result of the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.”
Table: MNRB's past 10 quarterly results
Chart 1: MNRB's last 17 quarterly results
Valuation
MNRB (closed at RM2.76) is now trading at a PE of 4.7 times (based on last 4 quarters' EPS of 58.3 sen). At this multiple, MNRB is deemed cheap.
Technical Outlook
From the two charts below, we can see that MNRB has been trading at its strong support of RM2.60 for many months. The stock broke above (or, more appropriately slipped through) its downtrend line in October 2010. It did not rally bit instead traded sideway between RM2.55 & RM2.90. A break above the RM2.90 horizontal line could be the start of a slow recovery for this stock.
Chart 2: MNRB's weekly chart as at May 31, 2011 (Source: Quickcharts)
Chart 3: MNRB's monthly chart as at May 3, 2011_plotted on log scale (Source: Quickcharts)
Conclusion
Based on improved financial performance & attractive valuation, MNRB is a good stock for long-term investment.
pls correct that NTA is $4.68,not $4.26...thank you
ReplyDeletecan u comment on mflour proposal? thks
ReplyDeleteAs a long term holder of MNRB, I am happy with the current results. However it is frustrating that the company hasn't declared any dividends!
ReplyDeleteHi AlexP,
ReplyDeleteIt looks like MNRB has stopped paying dividend in 2010 (go here ). With the better performance, it should continue to pay dividend again. Once upon a time, MNRB was known as a high dividend yielding stock.
Hi nightradersdk
ReplyDeleteI have posted something on this. There have been too many inquiries on this exercise.
Hi RedEagle,
ReplyDeleteThanks for the tip. Those interested to check out this point, go here .
Dear AlexP,
ReplyDeleteYou need to be patient.I think MNRB will give dividend soon. Call or email the management about your concerns. Afterall you are the shareholder.