Results Update
PBA continued to report good results for QE30/6/2011. Its net profit increased by 10% q-o-q or 110% y-o-y to RM12 million while turnover increased by 15% q-o-q or 29% y-o-y to RM65 million. The improvement in bottom-line was mainly due to "the improved sale of water revenue from trade consumers".
Table: PBA's last 8 quarterly results
Chart 1: PBA's last 25 quarterly results
Valuation
PBA (closed at RM0.90 yesterday) is now trading at a PE of 6.4 times (based on the annualized ESP of 14 sen). That's very attractive for a utility stock.
Technical Outlook
From the chart, we can see that PBA has a strong horizontal support at RM0.80. Its upside is capped by a line that connects the peaks for the past 2 years (at RM1.25-1.30).
Chart 2: PBA's weekly chart as at August 22, 2011 (Source: Quickcharts)
Conclusion
Based on good financial performance & attractive valuation, PBA- a defensive stock- is one stock that you may add to your portfolio in this time of uncertainty.
during bear, like 2008, what was PBA PE?
ReplyDeleteHi Zam
ReplyDeletePBA traded between RM0.73 & RM1.18 in 2008. If we take an average of RM0.955 & EPS for FY2008 of 9.4 sen, then the PE of slightly over 10 times.