Mudajya- bottom-line declined

Result Update

For QE30/9/2012, Mudajya's net profit dropped 9% q-o-q or 12% y-o-y to RM55 million while revenue dropped 37% q-o-q but rose 5% y-o-y to RM353 million. Net profit dropped q-o-q due to lower revenue from construction segment which was the result of higher delivery of equipment components for the Indian power plant project in the preceding quarter.


Table: Mudajya's last 8 quarterly results


Chart 1:Mudajya's last 27 quarterly results

Valuation

Mudajya (closed at RM2.58 yesterday) is now trading at a PE of 5.3 times (based on last 4 quarters' EPS of 48.76 sen). At this multiple, Mudajya is deemed fairly attractive.

Technical Outlook

Mudajya is struggling to stay at its long-term uptrend line support at RM2.70 . For the past few weeks, it has been trading around RM2.60, which is below the long-term uptrend line. Can it recover above the uptrend line?


Chart 2: Mudajya's monthly chart as at Nov 21, 2012 (Source: Tradesignum)

Conclusion

Wth the weaker financial performance & the uncertain technical outlook, I would revise Mudajya's rating to a HOLD.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Mudajya.