In QE30/9/2014, MISC's net profit rose 63% q-o-q or 17% y-o-y to RM471 million while revenue was mixed- down 14% q-o-q but inched up 1% y-o-y to RM2.18 billion. Revenue dropped q-o-q due to lower revenue in the Heavy Engineering following lower progress on projects in hand during the quarter. Pre-tax profit increased q-o-q due to lower operating losses incurred in Petroleum business and improved freight rates in Petroleum business.
Table: MISC's last 8 quarterly results
Chart 1: MISC's last 33 quarterly results
Valuation
MISC (closed at RM7.38 on Friday) is now trading at a PE of 14x its FY2013 EPS of 52 sen. At this PE multiple, MISC is deemed fairly valued.
Technical Outlook
MISC broke above the RM7.00 horizontal line in early November. This could signal the continuation of its uptrend.
Chart 2: MISC's daily chart as at Nov 7, 2014 (Source: Tradesignum)
From the weekly chart (Chart 3), we can see that MISC is in an uptrend. Its next resistance is at RM7.80-8.00.
Chart 3: MISC's weekly chart as at Nov 7, 2014 (Source: Tradesignum)
Conclusion
Based on satisfactory financial performance and bullish technical outlook, MISC is rated 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, MISC.
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